The UK’s last coal-fired power plant closes today, the same day the last blast furnace at Port Talbot ceased.

The closure of the power plant at Ratcliffe-on-Soar has been orderly. The end was well signposted and all parties had years to plan.

At Port Talbot, it was only earlier this month that clarity was finally achieved, with the facility closing down by March 2025.

The ill will resulting from the chaos of Port Talbot stands in contrast with the managed end of Ratcliffe. Lessons should be learnt, particularly for the oil and gas sector.

Collaboration

Underpinning much of the discussion around industries facing the end is the loss of the UK’s coal mining industry in the 1980s.

The lack of planning around shuttering of coal mines destroyed livelihoods and communities. The impact can still be seen today.

But the closure of the Ratcliffe plant shows another way. The way in which the workers have been supported in moving to other industries and professions has been a striking success.

Closure of the plant – and in particular the way in which it was closed – has been approved by unions.

GMB, Prospect and Unite all worked with Uniper on the plans. The closure was set out in 2015, with 154 jobs in focus.

The unions began talks in 2020 on a transition plan. They had previously carried out similar work for the closure of Cottam in 2019 and West Burton A in 2023.

The unions and Uniper agreed to a similar process.

GMB’s Ratcliffe representative Chris Howe said having a seat at the table “played a huge role in ensuring that what can be a stressful process and time in people’s lives is transitioned smoothly, achieving a positive outcome whenever possible”. A statement from the TUC quoted Howe as attributing success to “early engagement, cooperation, and collaboration”.

The union talks also received support from German unions in their discussions with Uniper.

The transition plan for workers involved co-ordination to find new jobs, backed by funding.

The TUC noted opportunities to transfer within Uniper or moving to associated businesses. The site also hosted job fairs, with participation by Drax, for instance. Uniper paid for training courses and also committed to generous redundancy packages.

Plans emerge

The Uniper-owned 2 GW plant was commissioned in 1967-70. Construction on the plant began in 1963, with the push into coal underpinning the UK’s energy ambitions.

Coal has now been on the decline since 2012. In April 2017, the UK had its first coal-free days since the Victorian era.

As coal phased out of the energy system, UK emissions have fallen dramatically. It has largely been replaced by wind and gas. In 2023, the Ratcliffe facility accounted for 2.67 million tonnes of CO2e, making it the fifth largest source of emissions in the country.

The Ratcliffe site already has advantages, owing to its location and role. As such, Uniper is moving ahead with a plan to build the East Midlands Energy Re-Generation (EMERGE) Centre on the site.

This involves a £330 million investment to generate 49.9 MW of power from waste, left over from recycling. Construction will involve 600 jobs and, once complete, 45 permanent jobs.

Uniper said EMERGE was part of a “wider vision for Ratcliffe-on-Soar – to move towards becoming a zero carbon technology and energy hub for the East Midlands region”.

In addition to generating power, it will reduce the amount of landfill, it explained. EMERGE should be operational by 2026.

The council secured a local development order (LDO) for the Ratcliffe site in July 2023. Arup, which provided support, explained an LDO goes beyond planning permissions. They are “adaptable and practical planning tools that serve local governments to support growth and provide the certainty needed to attract investment”.

The LDO has a number of aims, including the creation of 7,000-8,000 jobs in manufacturing and energy.

Piece of the wider puzzle

There is also a wider perspective for the region. Ratcliffe falls within the East Midlands Freeport. To qualify for freeport benefits, projects must be up and running by September 2026.

The East Midlands Development Co. has talked of Uniper’s work with various local interests, including the Midlands Engine, to develop plans.

The group said there was an opportunity to align the local project with the broader picture. It said there may be scope for generation, storage and distribution, in addition to gigafactories for battery and EV manufacturing.

In addition to EMERGE, Uniper set out plans last year for a green hydrogen facility at Ratcliffe. This might involve 500 MW of capacity by the end of the decade, it said, with an initial aim of 100 MW by the late 2020s.

This would be part of the East Midlands Hydrogen group. This initiative has projected local demand for hydrogen could pass 10 TWh by 2040, with ample grid and water capacity.

*Ratcliffe. Source: Shutterstock / Peter James Sampson*

Lessons to learn

The unions contrasted the success of closure at Ratcliffe with the turmoil in the UK’s steel industry, at Port Talbot and Scunthorpe.

The end of coal-fired power in the UK has been orderly. The Tata Steel and British Steel are anything but, with the process lacking clarity.

Ratcliffe’s closure has been on the cards for the last nine years. The TUC said “early planning” was essential to allow an effective transition place. This needs policy certainty and time.

“Future-proofing existing operations can cut carbon emissions and protect jobs for the long-run. Decarbonisation wasn’t possible with coal power but is possible across many energy-intensive manufacturing sectors – including steel,” it said.

As the TUC accepted, Ratcliffe employs a small number of people, while steel – and other industries – employ many more. And the oil and gas sector is likely to be even more complex, with many more stakeholders and interests at play.

But the factors for success remain the same.

Government, companies and workers need a clear vision of the future. The unions called for an industrial strategy and there are signs that the government is moving in this direction.

Earlier this month Chancellor Rachel Reeves said such a strategy would be at the heart of the government’s mission. Decarbonisation will play a key role in these plans.

The government will provide a green paper in October, around the Budget, setting out long-term plans. It is likely this will come at the International Investment Summit, on October 14.

This will provide scope for conversations with business, with the aim to publish a concrete plan in spring 2025.

Changes are coming. The country must work on delivering those new jobs, through collaboration with stakeholders and government alignment.

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