Halite Energy Group has today (23 December 2011) received notification from the Infrastructure Planning Commission (IPC) that its application for a Development Consent Order (DCO) to authorise an underground gas storage facility in Preesall, Lancashire has been accepted.
The DCO application has been published by the IPC on its website at http://infrastructure.independent.gov.uk and printed copies will be available for inspection at venues including the offices of Halite Energy and local libraries.
The application will now move into the 'pre-examination' phase of the IPC decision making process. Halite will publish notices in local and national newspapers explaining how and when people can register interest in the application and make formal representations to the IPC.
Halite's application to the IPC is for the development of up to 19 purpose-built caverns in the salt field at Preesall. Individually designed and constructed, the caverns would be used for the storage of up to 900 million cubic metres of natural gas, including 600 million cubic metres of working gas. This is significantly less than previous proposals promoted by Canatxx Gas Storage between 2005-2009.
There is growing recognition that the UK needs more gas storage, outlined recently in the Energy and Climate Change Select Committee report on the UK’s Energy Supply. The report stated that the UK should double its gas storage levels by 2020 in order to avoid exposure to gas supply interruptions and price spikes, but also to back up intermittent electricity generated from wind. The report also highlighted that the UK currently only has 14 days of gas stored, compared with France that has 87 days, Germany with 69 and Italy 59.
If approved, the facility at Preesall would increase the UK's storage capacity by 20 per cent.*
Welcoming the application acceptance Halite's chief executive, Keith Budinger, said: "The announcement from the IPC marks an important step forward for our proposed Project. An underground gas storage facility at Preesall would provide much needed security of energy supply for the whole country. Its strategic location, at such close proximity to the National Transmission System at Nateby, means that gas would be easily and readily available to the National Grid for distribution throughout the country at times of fluctuating demand."
The application was submitted by Halite to the IPC on 1 December 2011 following a comprehensive review of previous proposals and their planning application history undertaken by the new leadership and management in place at Halite. The company also carried out extensive geological tests to determine the suitability of the Preesall site to store gas safely and securely and held both informal and formal consultations on their proposed Project.
The formal consultation included a series of public exhibitions which were attended by over 350 members of the local community.
Keith Budinger added: "We are very grateful for the participation of all consultees in our consultation process. The Consultation Report forms a very important part of our application to the IPC. It demonstrates that Halite has taken into account the opinions, comments and suggestions of the local community and organisations who took the time to engage with us during our consultation. This feedback has helped shape and influence our proposals."
More information about Halite's proposed Project can be found at halite-energy.co.uk.
ENDS
*Source: According to the House of Commons Energy and Climate Change Committee Report, published in October 2011, ‘Energy and Climate Change – Eighth Report. UK Energy Supply: Security or Independence?’, the UK currently has 4.4 billion cubic metres of storage capacity. The proposed Preesall project could store up to 900 million cubic metres of natural gas, including 600 million cubic metres of working gas.
The application will be available for inspection in the New Year at the following locations: