Plans for a combined heat and power (CHP) plant in the UK have been dropped by its developers, citing market conditions.

The plant was to be built at the South Hook LNG terminal in Milford Haven, Pembrokeshire, and the project was first announced in 2012 by partners QPI Global Ventures, ExxonMobil Power, Total and Elf Petroleum UK. In 2014 their plans were approved by the Department of Energy and Climate Change.  

Power from the plant would have replaced the power that the LNG terminal imports. About the potential heat use, the companies said only that the plant ‘would be designed to make highly efficient use of the heat it produces’ in the gas production process. 

In a statement sent to Pembrokeshire council this month and reported by local newspaper the Western Telegraph, the partners said: ‘The Board of Directors of South Hook CHP Ltd has decided, in the light of current market conditions and the international competition for project funding, to cancel the proposed South Hook Combined Heat and Power Project planned to be built adjacent to the existing South Hook Liquefied Natural Gas terminal.

‘The decision not to proceed with the South Hook CHP Project was a difficult one for the shareholders to make and reflects the fact that in the light of today’s market conditions all discretionary major investments have to be rigorously appraised.’

After the decision, ‘development work was brought to minimum levels required to maintain the integrity of the work done to date and allow the timely and efficient restart of development if required,’ the partners said on the project’s web page.