Hundreds of jobs could be lost as axe set to fall on Killingholme power station

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Energy firm E.ON is to close the Killingholme gas-fired power station in North Lincolnshire, a decision that could lead to the loss of hundresds of jobs.

E.ON said market conditions for both gas and coal-fired electricity generation were “very challenging” and were too big to overcome.

Tony Cocker, chief executive of E.ON UK, said: “My main priority is our colleagues at Killingholme and we will continue to do all we can to help them through this difficult and uncertain time.”

“I would also like to thank everyone who has made a contribution to Killingholme throughout its lifetime - from the time the power station was a plan on a drawing board through to the team that will continue at the site in the months ahead to ensure it remains safe and secure.”

“Ultimately, the decision to close the power station is not one we have taken lightly and, as our actions have shown, we have exhausted every possible option to try to keep the plant viable.”

“The reality, however, is that market conditions for both gas-fired electricity generation and coal-fired are very challenging and in this particular case too big to overcome which has resulted in 900MW of generation capacity being permanently removed from the UK’s power network.”

Phil Whitehurst, GMB national officer, said: “This is bad news for at least 500 workers and their families in the supply chain who operate, service and maintain what is a viable combined cycle gas turbine station that has years of life left in it.”

“New low carbon generating capacity is needed but we are watching a funding crisis develop around building new power stations in the UK.”

“We need a long term plan for energy in UK. Leaving it to the market won’t work.”

The plant stopped generating power in March and will be totally closed by the end of the year.

Around 50 workers are directly employed at Killingholme, but the GMB said hundreds of jobs in the supply chain would be hit.

E.ON has operated the power station for over 20 years.