The new owners in charge of the Battersea Power Station redevelopment have refused to rule out building a controversial biofuel plant on the site.

Outline planning permission for the bifuel power plant was granted to the previous owners Real Estate Opportunities (REO) in 2011.

At the time bio-oil was considered an efficient source of energy, but studies have since revealed it actually gives off more greenhouse gases than burning fossil fuels.

Last year, Malaysian Consortium made up of SP Setia, Sime Derby and the Employee’s Provident Fund bought the site, but after being questioned on the matter, the consortium has refused to rule out continuing with REO’s plans.

A spokesman said: “The energy strategy is a key part of this ambition and in line with the planning consent.

“It is continually being reviewed and updated to ensure that the latest technology is incorporated and that current thinking on energy saving and carbon reduction measures are reflected.”

An REO planning document dating to the earlier application states: “The first generation bio oils currently available in many cases have a poor environmental footprint due to there sourcing or processing methods.

“However, given the time- scale of the Battersea Power Station redevelopment, it is hoped that significant improvements in biofuel sustainability will be achieved before they are required on site, perhaps second generation fuels will be available.”

Campaigners from the Transition Town movement, who focus on low carbon living, staged a public meeting last week to raise awareness of the biofuel proposals for the power station.

Research has shown oil palm plantations have caused rainforest loss in Indonesia and Malaysia, threatening endangered species such as
the orangutan.

They also claim installing a biofuel plant would increase levels of nitrogen in the air that can cause heart attacks and respiratory conditions.

Duncan Law, of Transition Town, said: “It is high in particulates of pollution that you get with diesel smoke that can get into the blood stream and can get lodged in the brain and bits of the body.

“They are planning a new school on the Royal Mail site, which is just to the east of Battersea Power station. It would be blowing straight over the school.

“You have got this amazing development and hidden inside in the heart of it you have got this awful thing.”