Britain shuts down last coal plant, which may increase imports of LNG from the U.S.

The United Kingdom shuttered its last remaining coal plant Monday, leaving the nation more dependent on natural gas for its electricity supply. This may be good news for the U.S. liquified natural gas (LNG) industry, as the U.K. imports the bulk of its LNG from the U.S.

The shuttering of the 2,000-megawatt Holborn Viaduct coal-fired power plant, The New York Times reports, brings to an end a 142-year legacy. Built by Edison Electric Light Station company, the plant, which opened in 1882, was the first power station built to supply electricity for public applications, according to the Guiness Book of World Records.

The U.K. has been aggressive in its efforts to eliminate fossil fuels from its grid, and the Telegraph reported last week that British companies pay the highest electricity prices anywhere in the developed world. The cost of power for Britain’s industries jumped 124% in the past five years, according to official figures. This is 50% more expensive than Germany and France, and 400% higher than the U.S.

Despite the impacts to the economy, the British Energy Secretary Ed Milliband addressed the Labour Party Conference last month, doubling down on the goal of net zero by 2030.

“It is interesting then that his ideas for more jobs and prosperity centre around more expensive intermittent energy that will be the inevitable consequence of his mission to make Britain a clean energy superpower by 2030,” British energy analyst David Turver wrote on his “Eigen Values” Substack.

Turver notes that the U.K. has a ban on offshore drilling and a moratorium on fracking, meaning any natural gas will need to be imported.

Whether the plant’s closure increases demand for LNG imports depends on a few factors, and any increase would likely be small. Coal provided only 1.38% of the electricity supply in the U.K. in 2023, while natural gas supplied 34.25% and wind 28.1%. However, the country’s electricity demand has been falling steadily since 2005. Should that trend continue, the loss of coal power may be made up by continuing declines in energy use.