The carbon capture and storage (CCS) demonstration programme will be open to projects on gas-fired power plants as well as coal-fired plants.
The government is committed to funding four commercial-scale CCS projects and recently announced that up to £1bn is to be made available for the first commercial scale CCS demonstration project.
The government took the decision to include projects on gas-fired power stations in the demonstration programme after analysing the net benefits of this approach including an assessment of the evidence and recommendations from the Climate Change Committee’s second progress report.
Also, due to information collected through the market sounding exercise conducted by the Office of Carbon Capture and Storage over the summer.
Energy and Climate Change Secretary Chris Huhne said: "We won't be able to take the carbon out of all gas plants overnight, but we hope to support the process by investment in new technology now."
"In the long run carbon capture will help provide us with a secure and affordable energy system and we want to encourage companies with projects on both gas and coal-fired power stations to come forward."
Further information:
DECC
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