E.ON delays £1.5bn Kingsnorth coal plant for three years

E.ON is delaying plans to build a £1.5bn coal-fired power station at Kingsnorth in Kent by up to three years.

In a statement, the energy firm said the recession had "pushed back the need for a new plant in the UK to around 2016 because of the reduction in demand for electricity". It means construction would not start till around 2012.

The plans for the plant have been dogged by controversy, with protestors invading the offices of Laing O'Rourke, and Bam Nuttall, who were both bidding for the contract to build the plant.

Kingsnorth, which has yet to be signed off by the government, would be the UK's first new coal-fired power station for 30 years.

It would replace the existing Kingsnorth plant, which is due to shut in 2015, and E.ON says the new facility would be 20% cleaner.

An E.ON statement said: "As a group, we remain committed to the development of cleaner coal and carbon capture and storage (CCS), which we believe have a key role to play alongside renewables, gas and nuclear, in tackling the global threat of climate change, while ensuring affordability and security of energy supplies."

E.On first applied for permission to build a new plant at Kingsnorth in December 2006.