ADMINISTRATORS FROM KPMG have been called in to the parent company of power generation business Powerfuel.
Richard Fleming and Brian Green were appointed joint administrators of the Doncaster company. Powerfuel is parent company to both Powerfuel Mining and Powerfuel Power, neither of which are in administration.
Richard Fleming, joint administrator and UK head of restructuring at KPMG, said the goal of the administration was to sell the share capital of the business to raise funds. He added that the day-to-day running of both subsidiaries would not be affected.
Powerfuel Power recently won a deal to be the UK’s only carbon capture and storage, power station. Carbon capture stops harmful emissions, caused by burning fossil fuels, from entering the atmosphere.
Fleming said the development of carbon energy requires a large amount of capital and the company fell £635m short.
“The substantial funding gap has not been addressed in the past 12 months and accordingly the project has stalled. The administration will enable a sales process to find a new owner, who can both take the CCS project forward and buttress the mine, which also requires around £30 million of capital expenditure for works improvements,” said Fleming.
CVR Global were appointed in March after the struggling company ammassed around £1m debts
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