O’Brien, who recently took over the energy portfolio from Stephen Timms, said the government recognised the value of coal fired generation and its ability to meet peak demand and cover supply intermittency.

In a recent interview with The Observer, O’Brien said coal presently constituted around 32% of the UK energy market, but with North Sea gas supplies declining and without any government commitment to build new nuclear power stations, coal’s share is set to increase. Renewable energy was on the agenda but coal remains a key cornerstone.

Earlier, in a written House of Commons answer, O’Brien said it was seen coal would have a continuing role in a diverse energy balance, provided its associated carbon emissions could be reduced through clean coal technologies.

He said the government planned to publish by year-end a Carbon Abatement Technologies Strategy aimed at supporting the development of low carbon technologies from fossil fuels like coal.

A demonstration of clean coal technology is on the cards. The government is considering a proposal for a design and costing study to retro-fit super critical boiler technology to an existing coal-fired power plant.

The government is yet to resolve how it will reconcile increased coal useage with its Kyoto commitments.