U.K. Prepares to Spend €1.2 Billion Carbon Capture Fund

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Claims by the U.K. that it will lead the world in the development of carbon capture and storage (CCS) technology are closer to becoming a reality as the government gets ready to spend its promised €1.2 billion ($1.6 billion) in funding.

The coalition government has published a contract notice in the European Union's (E.U.'s) official journal calling for proposals covering a wide range of carbon capture related projects. The €1.2 billion in funding has been promised for some years but it now finally looks like the government will start significant CCS backing in the coming years. The news comes four months after the government suddenly decided it would no longer support the country's leading CCS project at the Longannet coal-fired plant in Scotland. It is believed that plant and project owner, ScottishPower (Glasgow, Scotland) fell out with the government over the lack of sufficient funding. For additional information, see October 20, 2011, article - Scottish Carbon Capture Project Cancelled.

The published contract notice, on behalf of the Department of Energy and Climate Change (DECC), outlines how it will offer "a contract or contracts for research and development activities relating to the commercialisation of carbon capture, transportation and storage services (CCS)".

It adds: "The contract or contracts collectively shall contribute to demonstrating the viability on a commercial scale of carbon capture and storage technology. The contract(s) may involve all or some of the research and development services necessary to demonstrate CCS technology, by generating knowledge as a result of carrying out feasibility studies, front end engineering and design (FEED) studies and/or the operation of demonstration projects. The projects would be designed to demonstrate the capture, transport and/or storage of carbon dioxide at a commercial scale and on a long term basis. Projects must be located within Great Britain, with storage facilities located within the UK territorial waters or Gas Importation and Storage Zone (as defined in the Energy Act)."

Despite delays to its CCS plans, DECC said that its goal is for the projects to start demonstrating carbon dioxide capture, transport and storage by 2016-2020.

"Since I first read about the technology back in 2005 I've held the view that carbon capture and storage is crucial to a low carbon future for our planet," explained the U.K.'s new Energy and Climate Change Secretary, Edward Davey. "It could transform mankind's relationship with fossil fuels. Once demonstrated it will have national and international ramifications for how we power our economies with clean secure energy for decades to come. The UK has the chance to lead the world in CCS and the Government is backing its commitment with £1 billion. We want to work with industry to deliver a new, vibrant CCS programme by the 2020s that helps deliver our low carbon targets in a realistic and cost-effective way."

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