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DECC announces shortlist for next-stage CCS demonstrators

30 October 2012

Four bidders have been short listed from a total of eight bids for the next phase of the UK’s £1bn Carbon Capture and Storage (CCS) competition.

Edward Davey
Edward Davey

Selection criteria included project deliverability, value for money, and ability to meet the government’s timetable to deliver a cost-competitive CCS industry in the 2020s. The successful projects are now being invited to take part in a period of commercial negotiations with government before decisions on which projects to support further are taken in the new year.

Energy secretary, Edward Davey (pictured) said the projects chosen have all shown that they have the potential to kick-start the creation of a new CCS industry in the UK, adding that further discussions will be needed to ensure value-for-money for taxpayers.

“Today’s announcement is an important step towards an exciting new industry, one that could help us reduce our carbon emissions and create thousands of jobs,” he said. “We have one of the best offers in the world and are a leading country in Europe. We will remain in close contact with the European Commission in the coming months as they take their decisions on which projects to support with European funding.”

Three of the UK’s short listed bids also applied for European Commission funding from New Entrant Reserve (NER) allowances.
The government has written to the Commission to inform them that it is willing to support these projects in the Commission’s Competition, subject to their ultimate success in the UK Competition. The Commission will make a final decision on whether to support a UK CCS project at the end of the year.

The four short listed bids, all full chain capture, transport and storage projects, are (in alphabetical order):

Captain Clean Energy Project: A proposal for a new 570MW, fully abated coal Integrated Gasification Combined Cycle (pre-combustion) project in Grangemouth, Scotland with storage in offshore depleted gas fields. Led by Summit Power, involving Petrofac (CO2 Deepstore), National Grid and Siemens.

Peterhead: A 340MW Post-combustion capture retrofitted to part of an existing 1180MW Combined Cycle Gas Turbine power station at Peterhead, Scotland. Led by Shell and SSE.

Teesside Low Carbon Project: A Pre-combustion coal gasification project (linked to c330MWe net power generating capacity fuelled by syngas with 90% of CO2 abated) on Teesside, North East England with storage in depleted oil field and saline aquifer. A consortium led by Progressive Energy and involving GDF SUEZ, Premier Oil, and BOC.

White Rose Project: An Oxyfuel capture project at a proposed new 304MW fully abated supercritical coal-fired power station on the Drax site in North Yorkshire. Led by Alstom and involving Drax, BOC and National Grid.

Following further decisions in the new year the Government expects that projects will undertake engineering studies before final decisions to build. The precise timetable for this will be dependent on the projects selected.

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