Four bidders have been shortlisted for the Government’s revived £1bn Carbon Capture and Storage competition, a sector which could create thousands of jobs.
The bidders will now work up proposals ahead of a final decision on which projects to support, which is expected in 2013.
CCS technology has been used on small scale projects, but if it can work at larger volumes it is seen by the government as way to allow the safe removal and storage of carbon emissions from coal and gas plants.
The four bidders were chosen from among eight bids received. They are:
Captain Clean Energy Project: A proposal for a new 570MW, fully abated coal integrated gasification combined cycle (pre-combustion) project in Grangemouth, 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. 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, 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.
Energy and climate change secretary Edward Davey said: “The projects we have chosen to take forward have all shown that they have the potential to kick-start the creation of a new carbon capture and storage industry in the UK, but further discussions are needed to ensure we deliver value-for-money for taxpayers.”
He added that the projects “could help us reduce our carbon emissions and create thousands of jobs”.
The project competition was relaunched in April after an earlier version collapsed in October 2011. The new completion relaxed rules on the types of power plants that could be considered.