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New company enters CCS competition

17 December 2008

Competition to build a carbon capture and storage (CCS) demonstration plant in the UK has heated up with the entry of a new company into the bidding.

RWE npower, which originally missed out on the government shortlist, has bought a 75 per cent stake in Peel Enegy CCS, which had made the list of the final three companies eligible to receive the contract.

Peel Energy CCS, was owned by Peel Energy and Denmark's DONG Energy/

If the new consortium wins the competition it will build a 400 megawatt coal fired station and transport CO2 to bury in disused gas fields in the North Sea.

RWE npower chief executive officer Andrew Duff said: "Energy companies cannot commit to commercial investment in CCS on a new power station until the technology is proven and seen to be economically feasible.

"This could be a major barrier to the construction of much needed new build power plant and so this project is vital to unblocking the potential for coal to play its part in the UK's long term energy mix."

According to some advocates of the technology, CCS could reduce CO2 emissions from coal plants by 90 per cent.

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Author: Administrator User