E.ON and ScottishPower has been awarded funding to support Front End Engineering and Design studies.
It is part of the competition to build one of the world's first commercial scale carbon capture and storage (CCS) demonstration plants and will enable the bidders to further their designs for the projects at Kingsnorth and Longannet.
It involves detailed engineering and design work, and will be completed within twelve months, after which the final competition winner will be selected.
This is one of the first set of studies of end-to-end commercial scale CCS on coal power plant in the world and will be used by project developers to examine and refine initial plans and reduce technical risk, so that more detailed project plans can be drawn-up and costed.
Energy and Climate Change Secretary Ed Miliband said: "It has the potential to support tens of thousands of jobs and bring billions into the economy."
"CCS is the only technology that tackles carbon emissions from fossil fuel power stations, and given the world's dependence on coal, is a vital technology to securing the world's future energy needs and tackling climate change."
Further information:
E.ON
Scottish Power
The Environment Agency is launching Flood Action Week, by urging the public to get flood ready.
The government has announced £84 million to prevent homelessness and support families over the winter.
The government has announced plans for a review of GP funding to deliver fairer distribution of funding and tackle health inequalities.
Government, regulators and industry have signed an agreement to deliver 21,000 new homes for North Sussex.
The government has announced that job advisers are to be embedded in GP surgeries to offer sick and disabled people help into work.
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