Fresh doubts over the viability of plans to build a large biomass fuelled power plant on Leith Docks have emerged after the Scottish Government announced a review of renewable energy subsidies.

The developers behind the proposed Leith Plant, Forth Energy, have previously acknowledged at local public meetings that the business case underpinning the power plant plan is reliant on millions of pounds of renewable energy subsidy for biomass power.  

Under the current subsidy regime the proposed power plant would qualify for renewable energy subsidies, despite the fact that it would waste much of the heat it generates.

This is one of the reasons why the plant has attracted thousands of objections from Edinburgh residents, as well as local and international environmental groups who have questioned the green credentials of the plan.  Yesterday, for the first time since the last Scottish election, the Scottish Government has confirmed that the subsidies for large-scale biomass plants will be reviewed.

Announcing a review of the subsidies in parliament yesterday, the Energy Minister, Fergus Ewing said: “We don’t believe large-scale electricity only plant, requiring trans-global shipment of wood would be good for the planet, or the economy.”

Commenting on the announcement, a spokesperson for Friends of the Earth Scotland, said:

"The commitment to review support for large scale, inefficient, electricity-only biomass power stations is also warmly welcome. Shipping in millions of tonnes of wood from abroad has serious environmental impacts and the developer behind the Leith, Dundee, Grangemouth and Rosyth biomass proposals should sit up, take notice and withdraw their applications."

The Scottish Government Energy Consent Unit will ultimately decide whether the proposed power plant will get the go ahead in Leith, with local councillors not set to debate the plans for Leith docks until December this year.

According to the Forth Energy application for the Leith power plant, all the heat from the proposed power station will be wasted unless a 'commercially viable,' means of installing a district heat network in the area can be identified.

Commenting on the 2020 Routemap for Renewable Energy in Scotland, Calum Wilson, Managing Director of Forth Energy said: “Forth Energy are committed to bringing reliable, responsible, renewable heat and electricity to Scotland and we have an important part to play in supporting the Scottish Government achieve both its heat and electricity 2020 targets. We welcome the announcement by the Energy Minister that recognises that wood-fuelled energy will make a key contribution to the renewable heat target of 11%.

"Our plans to generate 320mw of heat and 500mw of electricity at four key port sites will achieve over 30% of the heat target and 9% of the estimated electricity demand at 2020.

"We are committed to fuel sustainability. There is already an existing global market for wood fuel which is in abundant supply. Almost all of the fuel required for our proposed plants would be imported from accredited and well-managed forestry resources and will not compete with the needs of smaller scale biomass plants or the existing Scottish timber industry.”

A number of other government agencies have also criticised the proposals on the grounds that the visual impact of the Leith plan could threaten the city's world heritage status, including Scottish National Heritage and Architecture and Design Scotland.

IN DETAIL:

• Scottish Governement - Blueprint for a renewable revolution
• Biomass plan receives international objection
• The Scottish Government Energy Consent Unit