No meeting with Sargas - Fenech

Finance Minister Tonio Fenech has denied holding a meeting in January with representatives of Sargas - the energy company that proposed a new power plant to run on either gas or 'biopaste'.

However he did not exclude that a meeting was held between the Norwegian firm and ministry officials. "Possibly the meeting you are referring to was held between KPMG and Sargas," he said, referring to the the private accountancy firm commissioned by his ministry earlier this month to come up with a feasibility study on the proposal.

Fenech also told MaltaToday that the study has not reached him yet; though it remains unclear whether it has been concluded or is still ongoing.

Last year, the Norwegian firm proposed the construction of a new power plant with carbon capture technology,  that can run on either gas or 'biopaste', to complement the existing Delimara power station extension that will run on heavy fuel oil.

Carbon capture is a process that captures carbon dioxide (CO2) from power plants, and then stored so it does not enter the atmosphere.

Asked whether the study was commissioned after issuing a call for application, Fenech said that KPMG had been directly chosen because of its experience in the energy field. KPMG is a local firm which carries out audits and tax and advisory services.

Sargas, a Norwegian company, was involved a public controversy last year after proposing set up a carbon capture technology enabled power plant at Delimara. The proposal was championed by the Labour Party, scientists and other stakeholders, but was heavily criticised by Alternattiva Demokratika and other experts.

Sargas had denied having any link to any political party and that it never expected to enter a political controversy. The firm had been suggested to the Prime Minister by former foreign minister John Dalli.