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Bloomberg: Powerfuel Plans 900-Megawatt, Coal-Fired Plant in Yorkshire

By Bill Murray

April 17 (Bloomberg) — Powerfuel, the U.K.-based coal-mining company, plans to build a 900-megawatt, coal-fired power plant in Hatfield, in northern England, that will use Royal Dutch Shell Plc gasification technology and carbon capture.

Construction will take three to four years and may involve building a pipeline to transport carbon dioxide to storage sites in the North Sea, Powerfuel said in an e-mailed statement.

Kuzbassrazrezugol, a Russian mining company, bought a 51 percent stake in Powerfuel last year, providing the cash to start mining at the Hatfield Colliery coal mine, which was shut in 2004. Recent price increases and political support for coal-fired power plants are encouraging miners to consider opening U.K. coal mines that had been shut down.

To contact the reporter on this story: Bill Murray in London at at [email protected]

Last Updated: April 17, 2007 03:12 EDT

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