Lynemouth is one of several projects provided with an investment contract under the Final Investment Decision Enabling for Renewables (FIDeR). The European Commission has announced that this UK support does in fact comply with state aid rules. The Commission agreed that the project furthers the UK low carbon energy agenda without overly influencing competition.
The Commission has already approved a number of FIDeR projects, and in December of last year the UK notified the EU commission of plans to subsidise the conversion of the coal-fired Lynemouth power plant to biomass. The UK Government intends to support the project with a Contract for Difference. The project is expected to generate about 2.3 TWh of low-carbon electricity per year once operating. The plant is due to use approximately 1.5 million tonnes of wood pellets per year, mainly sourced from the United States, Canada and Europe.
The non-confidential version of the decision will be published in the State aid register on the competition website under the case number SA.38762 once eventual confidentiality issues have been resolved. For more information, please see the European Commission's release.