Nine project promoters including Powerfuel Power in Hatfield and Drax Power in Selby have submitted applications for hundreds of millions of pounds of funding to pay for up to 50% of their carbon capture and storage demonstration projects.
Powerfuel Power have entered both the 900MW IGCC plant, that in a consortium with National Grid was awarded €180m funds from the EU's EEPR competition, along with the 450MW gas fired Endex NGCC plant, a joint venture with Calix, as announced on 30 November 2010.
The European funding mechanism (called the NER 300) is made up of 300 million allowances from the EU emissions trading scheme. These allowances have been held back to fund CCS and renewable energy projects and are expected to raise around €4bn when sold.
The UK’s Department of Energy and Climate Change will spend the next three months assessing the bids and will then submit them to the European Investment Bank who will make the recommendations to the commission as to which should be funded. It is expected that eight CCS projects in Europe will be funded with up to three CCS or renewable energy projects per member state.
Drax Article - Reutershttp://www.reuters.com/article/2011/02/10/britain-ccs-drax-alstom-idUSLDE7190ZF20110210
Powerfuel Article - Bloomberghttp://www.bloomberg.com/news/2011-02-09/powerfuel-s-u-k-carbon-project-bidding-for-a-slice-of-european-funds.html
Powerfuel Article - 2 projects - Bloomberg
http://www.bloomberg.com/news/2011-02-11/powerfuel-seeks-eu-funds-on-second-u-k-carbon-capture-and-storage-plant.html
The Drax submission is in conjunction with Alstom UK, a link to their press release is below:
www.alstom.com/.../CCS-application-100211