Given the right energy and environmental policy framework, we could make significant reductions in our CO₂ emissions.

Co-firing renewable biomass materials with coal has emerged as a credible renewable technology and is the quickest and most cost effective way for us to drive down emissions of CO₂, but, the policy framework must facilitate this.

Biomass is typically at three to five times more expensive than coal, once all factors are considered, and we cannot embark upon a major investment scheme without confidence in the future of the Renewables Obligation (RO) and the market it enables.

Equally, we are dependent on the development of a biomass supply chain, which in turn means that farmers and foresters must consider energy crop planting to be a viable component of their business.

We continue to work closely with the Government to ensure that the proposals coming out of the Energy White Paper are implemented. The reform of the RO is key to delivering sustainable emissions reductions, meeting renewables targets and mitigating the environmental impact of a continued, but necessary, reliance on coal-fired generation.

We have set ourselves the target of producing 10% of our output from renewable fuels by the end of 2009, equivalent to the output of around 500 wind turbines, and with it a reduction in our emissions of CO₂ by over two million tonnes each year.