The European Commission says that six carbon capture and storage (CCS) demonstration projects located around Europe should receive economic stimulus funds.
The EU's executive body has recommended the six projects – in Germany, Italy, the Netherlands, Poland, the UK and Spain – to the European Parliament, which has four weeks to raise objections.
The news came as the International Energy Agency (IEA) said that the world will need to set up 100 CCS projects by 2020 in order to ensure that the fight against climate change remains affordable.
The Commission’s recommended winners are Vattenfall's Oxyfuel project in Jaenschwalde, Germany, the Rotterdam Hub scheme in the Netherlands, a Polish project in Belchatow, Powerfuel's Hatfield project in Britain, Endesa's OxyFuel project in Compostilla, Spain, and Enel's scheme in Porte Tolle, Italy.
With the exception of the Italian scheme, each project will receive EUR180 million of stimulus funding, to be matched by national governments. Enel’s project will receive EUR100 million.
The projects are viewed as being of vital importance to the EU’s climate and energy strategy. The Commission is hoping to make a formal announcement regarding the projects in mid-November – ahead of the international climate talks to be held in Copenhagen in December.
The European Union pledged a total of EUR1.05 billion of funding for CCS development in its economic stimulus package. The Commission has also set a target of establishing up to 12 CCS demonstration projects in the region by 2015.
The IEA said in mid-October that between $2.5 trillion and $3 trillion of additional investment will be needed worldwide within the next 40 years to commercialize CCS technology. It also says that the developed world must lead the effort and make funding available for CCS demonstration in developing countries.
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