New operators are being sought for the proposed biomass plants at Rosyth and Grangemouth after Forth Energy announced they were pulling out of the projects.
The Scottish Government granted permission for both projects after public inquiries but a question mark now stands over their future.
Forth Energy, a joint venture of Forth Ports and Scottish and Southern Energy, on Wednesday announced that it is withdrawing from the scheme as a result of SSE’s major restructuring.
The electricity supplier is concentrating on its core business and moving away from biomass, wind and wave power schemes because of doubts about their viability.
A statement from the company said: “Forth Energy confirms that it is not continuing with plans to develop the Grangemouth and Rosyth wood fuelled renewable energy projects.
“Both projects have gained consent from the Scottish Government and Forth Energy is investigating options to attract other developers to take the projects forward.”
In the same move Forth Energy has withdrawn its application for the proposed biomass plant in Dundee.
The £325 million renewable energy project at Rosyth was billed as a project to bring hundreds of jobs to the area.
Forth Energy said the investment for a woodfuel burning combined heat and power plant would provide low-carbon energy to the local area, and the equivalent of over 40% of the Fife Council area’s electricity needs.
It was predicted to bring up to 500 jobs to the area during construction, and 70 operational jobs at the port, and would deliver £26 million of annual economic benefit per year to the area.
Friends of the Earth was dismayed at the prospect of the Rosyth biomass plant, saying it was a betrayal of rules to limit the impact of biomass power stations.
The plant would burn a million tons of wood a year, mostly imported from the Americas, and FoE was concerned it would cause more forest destruction, carbon emissions and local air pollution.
The £465m combined heat and electricity plant at Grangemouth was destined to be the biggest in Scotland.
Burning more than a million tons of sustainable wood chips each year mostly from America, the plant was to play a key role in achieving the Scottish Government’s 2020 renewable targets by generating enough power to meet almost all of the Falkirk council area’s electricity.
SSE chief executive Alistair Phillips-Davies’ move to realign to a simplified firm and take a tougher line on profitability has driven the retreat from renewables.
Prospects for the industry look less promising. The offshore wind business has lost momentum and wave and tidal technologies remain some distance from financial viability.