Matt 'King Coal' Ridley Loses Power Station Buyer Due to European Regulations

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The latest exclusive from our #MattKingCoal investigation shows how climate denier Matt Ridley has been impacted by European carbon emissionsย regulationsโ€ฆ

Lord Ridley, the aristocratic farmer and science writer, has weighted all the evidence and after due consideration decided that the world’s leading researchers have become overly alarmed by the threat posed by climateย change.

His views have nothing to do with the fact he has an opencast mines on his family estate. And his opinion is entirely unrelated to the fact his local power station will no longer buy his coal because European regulations have forced it to abandon fossil fuels.ย ย 

Ridley is currently expanding the two opencast mines on the familyโ€™s Blagdon Estate so that a total of 8.4 million tonnes (Mt) of coal can be excavated ahead of 2020, increasing his profits to an estimated ยฃ4.1m eachย year.

Much of his coal has been burnt by theย Lynemouth power stationย in nearby Blyth.ย But Lynemouth Power has until the end of the year to complete a ยฃ100m conversion to biomass or face closure under European emissions regulations. The station has now received one of eight contracts to supply renewableย energy.

The Ridley family has owned the Blagdon Estate in Northumberland since 1700 and, over the centuries, has amassed a huge fortune from mining coal, fuelling the industrial revolution and the Britishย Empire.


Coal is transported by heavy goods vehicles six miles down the road to a power station at Blyth photo: Brendan Montague

Yet Ridley, author of Nature Via Nurture and The Rational Optimist, was originally a firm believer in climate change. Back then, carbon capture and storage gave real hope that coal could still beย burned.

But he hasย more recently given intellectual and strategic support to Britain’sย climate deniers includingย his brother-in-lawย Owen Paterson, the sacked environment minister and founder of the UK2020 thinkย tank.

Ludicrous Myth

Ridley claims that his โ€œindirectโ€ vested interests in coal do not influence his climate denial, saying he has supported gas which is a direct competitor. However, he has been very forthright in his criticism of biofuels. โ€œSo it is a ludicrous myth that biomass cuts carbon emissions,โ€ he wrote in the Times.

โ€œMany coal plants are being subsidised to switch to biomassโ€ฆthe biomass dash is excellent news for woodland owners (such as me)โ€ฆIt is less good news for the coal industry, in which I also have an indirectย interest.โ€

Lynemouthย power station was built by Rio Tinto Alcan to provide energy to an Aluminium smelting plant, but was sold to RWE npower in December 2012 to stave off closure after the factory was shut. It has recently landed contracts to provide fuel fromย biofuels.

Ed Davey, the Secretary of State for Energy and Climate Change, said of the deal at the time: โ€œThese contracts for major renewable electricity projects mark a new stage in Britainโ€™s green energy investmentย boom.

โ€œBy themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secureย energy.โ€

Greatย Boost

Bob Huntington, managing director of Lynemouth power station, told the Journal newspaper:ย โ€œThis is a great boost for the Lynemouth project, and for the local areaโ€ฆthis project is a win-win for allย involved.

โ€œIt gives the power station and its workforce a long-term future, the wider North East region and the local economy benefit as supply chains and other infrastructure are created, and once operational, the project will deliver over 400MW of low carbon electricity to the National Grid, supporting the governmentโ€™s climate changeย targets.โ€

Indeed, the only loser appears to be Lord Ridley. His mines contain high-calorie, low-sulfur coal which was ideal for this power station. And, the dramatic fall in international coal markets might well mean he may struggle to get a good priceย elsewhere.


Shotton surface mine photo: Kyla Mandel

The Shotton and Brenkley mines on the Blagdon Estate are run by Banks Mining, a family-run northern business which has diversified into renewableย energy.

Market analysts advise that Banks Mining is likely to pay the Rotterdam price for Northumberland coal. This has collapsed, falling from more than $100 per tonne in 2012 to less than $60 (ยฃ40) today.ย The coal under Ridleyโ€™s estate would therefore have a โ€œstreet valueโ€ ofย ยฃ336m.ย 

Banks Mining pays Ridley ยฃ4 per tonne of coal, according to local sources, which would amass ยฃ35.8m over the lifetime of the two mines.ย The Treasury receives ยฃ0.17 per tonne in royalties, as the government still owns the coal. A further ยฃ0.10 goes towards planning gain โ€“ developments funded to appease localย planners.

Mark Dowdall, environment and community director at Banks Mining, confirmed coal from Blagdon was sold to Lynemouth power station. He said the price paid by the power station was commerciallyย confidential.ย 

He said the company had already found a new customer and there had been no attempt to speed up production at Blagdon before the power station converted to biofuels. โ€œWe will continue to supply UK demand for coal,โ€ heย said.ย 

In a further twist to this strange tale, Ridley is in perfect agreement with environmental campaigners Friends of the Earth and Greenpeace in attacking biofuels. โ€œBurning tree biomass for electricityย can be worse for the climate than burning dirty fossil fuels,โ€ according to Kenneth Richter at FoE.ย ย 

@brendanmontague

Photo: Andy Commins /ย Theย Journal

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