The UK government’s plan to support the development of a commercial-scale carbon capture and storage plan has moved forward with the announcement of funding for design studies for two projects.
E.On and Scottish Power are reportedly sharing tens of millions of pounds and will use the funds to carry out the front end engineering and design (FEED) work for coal fired power plants equipped with carbon capture and storage (CCS) technology.
The funding is part of the UK government’s CCS competition, which is designed to spur the development of a commercial-scale CCS facility by 2014. The detailed FEED studies have to be completed within 12 months, after which the overall winner of the competition will be announced.
“These two promising projects are at the forefront of the UK’s efforts to build one of the first commercial-scale clean coal plants in the world,” said Energy and Climate Secretary Ed Miliband. “CCS is the only technology that tackles carbon emissions from fossil fuel power stations, and given the world’s dependence on coal, is a vital technology to securing the world’s future energy needs and tackling climate change.”
The E.On- and Scottish Power-led consortia are the only two groups remaining in the CCS competition after a venture between RWE, Dong Energy and Peel Energy withdrew last year. E.On has put its proposed Kingsnorth power plant forward for the competition, while Scottish Power has proposed the construction of a CCS facility at its existing Longannet power plant.
The detailed design work will enable the bidders to further their designs for their projects, understand costs and reduce technical risks.
“The real work of finally making CCS a commercial reality begins today as this funding will now enable Scottish Power to take the technology from the concept to design the stage,” said Nick Horler, Scottish Power CEO. “It will tell us exactly what we need to know so that we can quickly build this new and essential technology.”
The funding was also welcomed by E.On. “It’s absolutely vital that we get CCS right and it’s especially heartening to see that we’re now getting some real movement here in the UK,” said Dr. Paul Golby, CEO of E.On UK. “We should always remember that the long game with CCS is not just about Kingsnorth, it’s about a worldwide battle against climate change.”
The announcement from the UK government means that there are now three CCS projects in the UK that have direct financial support from either the UK government or the European Union. The UK government is hoping to eventually provide support for four CCS projects.
“In today’s financial climate [such funding] bestows a huge competitive advantage,” says Ian Temperton, Head of Advisory at Climate Change Capital. “It effectively means that three of the four UK CCS demonstration plants have already been selected. I would be surprised if anyone is prepared to compete for the fourth berth without the help of direct state funding.”
In 2009 the European Union awarded EUR180 million to the Powerfuel of the UK for the construction of a 900 MW coal fired power station equipped with CCS technology.
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