Plans for the first new coal-fired power station for nearly 25 years suffered a setback yesterday when E.ON, the German energy giant, asked the Government to delay a decision on whether the Kingsnorth station can go ahead.

The company wants clarity from the Government over ministers’ exact requirements for carbon capture and storage technology, when that technology is developed. E.ON said yesterday that it needed certainty on the Government’s precise definition.

Greenpeace said that the move was a big blow to the Government’s energy plans and showed that its energy policies were in disarray.

Kingsnorth in Kent has won planning permission from its local Medway authority but the final decision rests with the Department for Business, Enterprise and Regulatory Reform. John Hutton, the business secretary, has signalled his support for the scheme but it is believed that he faces opposition from Hilary Benn, the environment secretary.

Dr Paul Golby, E.ON chief executive, said the Government had been asked to delay the decision until after its consultation on carbon capture “when we will all know exactly what is required by the Government for a station to be deemed CCS-ready.”

He added: “Once the Government’s consultation process is complete and its results published, we can move forward accordingly.”

John Sauven, Greenpeace executive director, said: “E.ON’s Kingsnorth climbdown is a major blow to John Hutton and his plans to have a new coal-fired power station under construction this summer. With the most ardent coal generator now calling for a delay, Hutton’s under-fire department is looking isolated. It’s time for the Prime Minister to step in and take control by initiating a full government coal review.”

Keith Allott, head of climate change at WWF-UK, said: “The Government’s energy policy is currently a mess, and E.ON’s decision to delay its plans for a new power station at Kingsnorth reflects that. New coal power stations would drive a coach and horses through the country's climate change objectives unless they fully capture and store the carbon they produce from day one - it's not good enough just to hope that carbon capture technology will be bolted on later.”

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