UK re-starts £1bn carbon capture competiton

2012-04-03 20:13

kalahari.com

London - Britain re-launched on Tuesday a £1bn competition for one or more power plants to capture and store carbon (CCS), five months after the government's first attempt to finance the technology failed due to spiralling costs.

The Department of Energy and Climate Change (DECC) said it was already in discussions with developers of CCS projects to find an appropriate minimum electricity price level for the technology to be awarded to projects through so-called contracts for difference, on top of the competition funding.

The selected project or projects could sign front-end engineering and design contracts with the government by the end of this year or in early 2013, and the plants are expected to start operating between 2016 and 2020.

"(CCS) could be an absolute global game-changer. We think this could be a hundred thousand jobs to the UK in the 2020s," said Britain's Energy Minister Charles Hendry on Tuesday.

The CCS industry could contribute £6.5bn per year to the UK economy by the end of the 2020s through exports of knowledge and products, the government said.

But the technology is commercially unproven and costly to build, while there is little experience globally so far in developing such complex plants.

Govt funding for projects

Britain's previous CCS competition failed in October when the last bidder, Scottish Power's Longannet power plant, withdrew on the issue of how much government funding would be needed.

"One of the criticisms of the previous competition was that we weren't flexible enough, and so what this one is really about is listening to the industry more, being a bit more flexible and looking at what's actually going to work," said a DECC spokesperson.

Several companies, such as British power producers Drax and SSE or network operator National Grid, plan to apply for government funding for the projects they are involved in.

Companies face a July 3 deadline for submitting full applications and have to register their interest with the government by April 13.

To qualify for funding, CCS projects have to have a power plant and carbon capture facility based on the British mainland and a storage site located offshore.

Britain's previous CCS competition failed in October when the last project, Scottish Power's Longannet power plant, withdrew its bid after discussions collapsed with the government about how much funding was needed.
Read more on:    uk  |  climate change
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

New GIF keyboard on iOS for added fun!

Soon sending an LOL! or facepalm will be so much more fun!

 
 

For chic geeks...

Puppy goes crazy over iPad game
Printable solar panels will bring exciting new opportunities!
Now there’s a special lane for texting while walking
LOL! 7 brutally honest texts from parents

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

There is a tendency to fight against the current today but this will just use up a lot of energy and not get you very far. You...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.