Centrica, the owner of British Gas, is on track to regain its leadership position as the generator of electricity with the lowest carbon emissions of all major UK energy suppliers.

The Group is setting an ambitious target to cut carbon intensity from its UK electricity generation by over a quarter, according to its annual Corporate Responsibility report published on 5 May 2010.

Its Direct Energy business is also leading the way in North America, where its generation fleet, located in Texas, supplies power with emissions almost half the state average.

Centrica has in recent years consistently been the cleanest generator of electricity among the UK's major energy suppliers, thanks to its low emitting fleet of gas-fired power stations and growing wind farm portfolio.

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Most recently, in April 2010, Centrica brought its high efficiency 885 megawatt gas fired power station at Langage into full commercial operation. Langage has one of the lowest carbon intensities of all the UK's gas fired plant. Centrica's 194MW Lynn and Inner Dowsing facility, the UK's biggest offshore wind farm, became operational in March 2009.

French group EDF Energy temporarily had the lowest UK carbon intensity in 2009 following its acquisition of British Energy, the low carbon nuclear generator.

But Centrica is now setting a new target which by 2012 would see its emissions levels, or carbon intensity, fall to just 270 grammes of CO2 emitted per kilowatt hour (g CO2/kWh) of power generated. This would be down 27% on its 2009 carbon intensity of 371g CO2/kWh, which was its lowest ever and down over a third on its 2005 level of 412g CO2/kWh.

Centrica expects to make very significant strides towards its target in 2010, which should put it back in a leadership position this year, helped by its new wind farms and the acquisition of a 20% stake in British Energy last November.

(CD/GK)