The Department of Energy and Climate Change (DECC) has confirmed that 14 UK projects have applied for EU renewables and carbon capture and storage (CCS) funding.
The applications, nine for CCS and five for renewables, are being made under the EU’s NER300 (New Entrant Reserve) scheme.
The scheme, which is being managed by the European Commission, European Investment Bank (EIB) and member states, will sell out 300 million allowances under the EU Emissions Trading System (ETS) to generate a pot worth between €4.5 billion and €9 billion.
Of the nine CCS projects, six are based in England – four in the Humber region and two in Teeside – and three in Scotland, including Ayrshire Power’s proposed multi-fuel power station at Hunterson in North Ayrshire.
Two of the nine carbon capture applications are for gas-fired power stations, including Scottish and Southern Energy’s Peterhead facility in Scotland and troubled Powerfuel Power’s proposed facility at Hatfield Colliery near Doncaster in Yorkshire.
The applications cover both new power stations and retrofits of two existing facilities and a range of technologies, including pre-combustion (five projects), post-combustion (three projects) and Alstom and Drax’s proposed oxyfuel demonstration project at Selby in North Yorkshire.
“The strong level of interest received for CCS projects in particular is heartening,” said Energy Minister Charles Hendry. “It shows that UK industry is keen to move forward in the development of CCS and confirms the lead that the UK is taking in this critical technology.”
Hendry also highlighted that the applications for renewables funding include four marine technologies – three tidal stream projects and a wave project all based in Scotland. The only English renewables application came from an offshore wind project based in the north east.
The UK Government will now consider the applications before deciding which to put forward to the EIB for further consideration.
For further information:
SSE applies for EU funding for Peterhead CCS project (11-Feb)
UK could create new carbon capture and storage industry, says research (31-Dec 2010)
Administrators called into UK carbon capture company Powerfuel (10-Dec 2010)
European Commission opens low-carbon investment fund (10-Nov 2010)
18 February 2011