A majority of electricity producers received top marks for environmental performance in 2006 according to a report by the Environment Agency.

Significant progress has been made on reducing waste and sulphur dioxide (SO2) emissions. SO2 emissions in 2006 were the lowest on record after power stations met high air quality targets.

Many power stations have fitted or are in the process of fitting specialist equipment to scrub out SO2 and thus reduce environmental damage from acid rain. Waste production was at its lowest level since 2002.

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David Porter, Chief Executive of the Association of Electricity Producers, said: "Electricity companies take environmental concerns very seriously. They are poised to invest about £20bn in new generating capacity by 2020. This will be in gas-fired, renewables, clean coal and, subject to the outcome of the Government’s consultation, probably some nuclear generation. The industry is moving towards a low-carbon generation portfolio and reducing its environmental footprint at the same time.

"We are pleased that the Environment Agency re-classified FGD gypsum as a by-product last year, allowing other industries to use it in place of primary minerals. Even more combustion products could be recovered if they were treated as a resource, not a waste. For example, the use of Pulverised Fuel Ash is still limited because it is classified as waste, not a by-product. We will continue to work with the Agency on this problem."

(CD/SP)