Spain’s Elcogas IGCC power plant ‘must be dismantled’ despite support

The dismantling of Spain’s 335MW Elcogas integrated coal gasification combined-cycle (IGCC) power plant will go ahead, despite union opposition and potential support from the next government, according to a spokesman for the facility.

“The future of Elcogas is independent of a new government, and the long timetable foreseen for the formation of a new one makes the continuity of the plant impossible,” said a spokesman for the plant which, he stated, “must be dismantled”.

A report into the closure published last year by Spain’s grid operator REE stated: “The closure of the facility will not have a significant impact on the security of supply in the Spanish electricity system.”

The plant has not produced power since the start of this year, so there is unlikely to be any impact on Spanish wholesale power prices.

The future of the facility in Puerollano, in the province of Ciudad Real has been disputed since Elcogas announced in June 2014 that it wanted to close. The request to close the plant was made that same month under the previous government, the conservative People’s Party (PP), after the government had announced it would not provide financial support for the facility.

Since then, Elcogas has won permission from the Spanish state to start dismantling the plant. This will begin in October 2016.

An agreement was forged last week between the company and the CCOO union over the termination of the employment of the remaining staff at the site. Workers representatives have expressed their desire for the plant to be reopened and looked for backing from opposition parties.

Spain has had an interim government since two elections, the first on 22 December 2015 and the second on 26 June 2016, have as yet failed to provide a governing coalition. The PP won the largest share of the vote in both polls.

A new government, especially one not led by PP, would probably introduce new policies, and could introduce support for IGCCs or the coal-fired sector.

Utilities have requested the right to reduce their coal-fired capacity in Spain because of low profitability. ENEL, which is the largest shareholder in Elcogas via its subsidiary Endesa, declined to comment on the outlook for its coal plants in Spain.

However, industry sources have said Endesa is still waiting for the government’s decision on aid to investments for the adaptation of thermal plants, such as the Compostilla facility, in order to comply with the EU’s industrial emissions directive. Jon.stibbs@icis.com