Norfolk

Norwich Generation Park consortium files for insolvency

Generation Park Image copyright Generation Park
Image caption An artist's view of how the power station would look

Plans for a biomass power station are under threat after the consortium behind it filed for insolvency with debts of £3m.

The so-called Generation Park site in Thorpe Hamlet, near Norwich, would include new homes and an education centre.

But Norwich Powerhouse (NPH), set up to oversee the £370m project, had struggled to find investment.

The power station met with protests when plans were announced last year.

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"There have been discussions with potential investors over some months but unfortunately at this stage there is no funding to move the proposal forward," said insolvency supervisor Chris McKay, of McTear Williams & Wood.

"It is against this background that we have entered into a Company Voluntary Arrangement (CVA) with creditors and NPH apologises to all involved and affected by the financial status."

The scheme for an electricity-generating incinerator, housing, student research units and leisure facilities was put together by the University of East Anglia and the energy firm E.ON.

Image caption Residents were concerned about poor air quality from the plant and food companies feared pollution of water courses

It was hailed as a world-leading project in which straw pellets would have been brought by rail to the derelict site next to the River Yare.

Some 200,000 tonnes of pellets were due to burned at the site each year to power 88,000 homes.

Protesters had claimed construction on contaminated land could pollute water sources for a nearby Britvic drinks factory, leading to job losses, and residents voiced concerns about poor air quality.

Power company EON said emissions would be controlled and neither air nor water sources would be affected.

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