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Climate Group welcomes UK government decision to fund UK’s first commercial scale CCS demonstration plant

12 March 2010
Climate Group welcomes UK government decision to fund UK’s first commercial scale CCS demonstration plant

LONDON, 12 March 2010: DECC has today awarded funding to Scottish Power and E.oN to conduct Front End Engineering and Design (FEED) studies in the latest stage of a UK competition to build one of the world’s first commercial scale CCS demonstration plants.

Launched in 2007, the CCS competition was designed to develop one of the world’s first commercial scale demonstration CCS plants in the UK. DECC will choose a final winner for the competition in around 12 months, once detailed design and engineering work for the two studies is complete.

Jane Paxman, Director of The Climate Group’s Low Carbon Power programme, said: “The UK and wider world cannot meet UN targets of halving global greenhouse gas emissions by 2050 without carbon capture and storage. Today’s news is a major milestone in the UK competition and hopefully means the UK’s first industrial-scale CCS project can be delivered – on time – in 2014. It is also encouraging to see the government’s new confidence in this important technology and commitment to support further CCS projects to be incentivized under the UK Energy Bill.”

Ed Miliband UK Energy and Climate Change Secretary said: “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. The award of design-stage funding demonstrates our commitment to this breakthrough technology. It has the potential to support tens of thousands of jobs and bring billions into the economy. 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.”

Nick Horler, ScottishPower’s Chief Executive, said: “We are delighted to have been selected for the next critical stage of the government’s competition. The real work of finally making CCS a commercial reality begins today as this funding will now enable ScottishPower to take the technology from concept to design stage. It will tell us exactly what we need to know so that we can quickly build this new and essential technology. It also puts the UK back at the head of the pack when it comes to delivering full-scale commercial CCS on a global stage.”

The Climate Group and Global CCS Institute are working with international stakeholders from government and business to accelerate construction of the first wave of industrial-scale CCS plants by 2015 in Australia, China, India, the EU and USA. This work supports International Energy Agency (IEA) targets to have 100 CCS plants in operation by 2020 and over 3,000 by 2050. If IEA targets are reached, CCS could represent around 20 per cent of all global efforts required to halve the world’s emissions by 2050 (from 1990 levels), meaning CCS has the potential to make the largest contribution to global emissions reductions from a single technology – equivalent to the combined GHG reductions expected to come from all forms of renewable energy.

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