Carbon Capture and Storage

Leading energy company E.ON UK has called on the UK Government to identify and commit to incentives for companies developing carbon capture and storage (CCS) technologies.

Speaking at the Adam Smith Institute’s Future of Utilities conference, E.ON’s UK chief executive Paul Golby said the time was right for the Government to do what is necessary for companies such as E.ON to complete technical development of CCS.

“While we at E.ON will continue to invest tens of millions in vigorously pursuing our ambitious CCS development programme, we need to see a similarly vigorous approach to developing the financial incentives,” he said.

The company has announced that it is starting work to identify potential routes for CO₂ pipelines in Kent around its proposed Kingsnorth coal power station, which is under consideration as one of the Government’s CCS demonstration projects.

“What we desperately need now is action,” he added. “Progress to date has been too slow and I very much hope to see signs of movement soon, which is why we’ve decided to push forward with developing options for our own project.”

With the right incentives in place, says E.ON, it will fit CCS technology to Kingsnorth, if the facility is given the go ahead by the Government.

UK Prime Minister Gordon Brown signalled his continuing support for coal as a source of energy, providing CCS technology is also developed, at the International Nuclear Fuel Cycle Conference at Lancaster House in London yesterday.

“We must invest in all sources of carbon energy - energy efficiency, renewables, carbon capture and storage, and nuclear power,” he said.

“Given the scale of global emission reductions that are required, and the likely cost, no cost-effective low carbon technology must be off limits.”

Golby said that E.ON welcome the consultation but need to Government to agree on a policy that will allow the industry to move ahead with CCS.

“We hope that this consultation will lead to an effective fossil fuel policy that removes the existing financial penalty for deploying CCS,” he said.

For further information:
www.eon-uk.com/
www.eon-uk.com/carboncostandconsequences.aspx
www.number10.gov.uk/