Carbon Capture Battle Heats Up in U.K.

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The U.K. government's competition for €1.2 billion ($1.6 billion) in funding for large scale carbon capture and storage (CCS) projects has attracted bids from 16 companies.

The Department of Energy and Climate Change (DECC) published the list of companies hoping for a share of the fund in order to attract suppliers and explore whether any of those competing wish to form an alliance. The list covers companies that have indicated that they will lead individual CCS projects. U.K. Energy and Climate Change Secretary Edward Davey said that the CCS industry could be worth €8 billion ($10.3 billion) a year to the U.K. economy by late next decade, through the export of expertise and products.

"This high level of interest proves that the U.K. is back on track with CCS," commented DECC spokesman. "From the outset, we are working through collaboration with industry to ensure we make CCS a reality and importantly create the maximum return for what is one of the best offers anywhere in the world."

After numerous delays, the government finally green lit its CCS Commercialisation Programme last month. It allows €1.2 billion ($1.6 billion) in capital funding for up to four CCS projects to demonstration level. There is also €155.5 million ($197 million) to cover the costs of research and development, including €16 million ($20 million) for a new U.K. CCS research centre. The government also outlined how it will offer long-term contracts and commitments to working with industry to address developing labour skills, supply chain, and storage and infrastructure development through learning from other international projects. For additional information, see April 11, 2012, article - New U.K. Carbon Capture and Storage Competition Under Way.

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

The U.K. competition comes amid global criticism from the International Energy Agency IEA), which last month warned that the implementation of carbon and capture and storage (CCS) technology is lagging far behind where it needs to be. The IEA highlighted that up to 40 fossil fuel-fired power stations fitted with commercial-scale CCS technology need to be in place by 2020 but at the moment that figure stands at zero. For additional information, see April 30, 2012, article - IEA Criticises Slow Carbon Capture & Storage Rollout.

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