Yorkshire Project In Line for Funding

Yorkshire Project In Line for Funding

Four UK carbon capture and storage (CCS) projects and one marine energy scheme are in the running to receive up to €1.5bn of EU funding.

According to a report published by the European Commission yesterday, 2Co’s Don Valley Power project is at the top of a list of eight CCS proposals, followed by the Belchatow project in Poland and the Green Hydrogen industrial project in Holland.

The remaining UK projects, however, are in danger of missing out on the funding as the Commission said only the first two or three projects are likely to be supported within the funds available, despite passing due diligence in March.

Progressive Energy’s planned Teesside plant, the White Rose proposal backed by Boc, Drax, Alstom and National Grid and C.GEN’s project in Killingholme, Yorkshire ranked fourth, fifth and sixth respectively while the Getica project in Romania and SSE’s proposed post-combustion capture system in Peterhead are first and second on the reserve list.

The only way in which these UK projects would receive monies is if a higher ranked project is deselected due to insufficient funds or is not confirmed by the Member State. However, it is still possible for them to win the UK CCS commercialisation competition worth £1bn, the results of which are likely to be announced soon after the beginning of July closing date for applications.

ScottishPower’s Sound of Islay Tidal Project is in line for funding on the renewable energy list. However, Marine Current Turbines’ Kyle Rhea tidal stream array would receive the funding should ScottishPower drop out.

Member states will be asked by the Commission to confirm the projects and national co-funding in early October 2012, with a view to its funding decisions being finalised by the end of this year.

The funding is part of a programme to auction the NER300 in two tranches. However, due to dwindling carbon prices the €5bn the Commission had expected to receive from the sale of the first 200 million has been slashed, a process which the EIB is currently undertaking.

Initially the UK put forward 7 CCS and 5 renewable energy projects for NER300 funding but ScottishPower and Peel Energy have both since pulled out of their proposed plans at Longannet and Hunterston respectively.

According to the Commission, the EIB received 13 CCS and 66 renewable energy proposals from 21 Member States giving a total request for funding of €11.8bn.

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