Bids for the CCS competition which is being run by the UK's Department of Energy and Climate Change closed at lunchtime yesterday and DECC has pledged to review all the bids before finalising a decision on which projects to support later this year.
“The UK has one of the best offers anywhere in the world for CCS and this competition is an important step to reach our aim of a cost competitive CCS industry in the 2020s,” DECC declared as the CCS bid deadline fell.
“We will be carrying out an initial review of each bid before making further details available in the next few weeks,” stated a spokesman for the Department. “Decisions on which projects to support will be made in the autumn following an assessment and evaluation process.”
As part of the CCS Commercialisation programme, the government department is offering up to £1bn of capital funding for the design, construction and operation of a commercial scale carbon capture and storage plant.
Energy Secretary Ed Davey launched the competition back in April, saying then: “The CCS industry could be worth £6.5bn a year to the UK economy by late next decade as we export UK expertise and products.”
In addition to the £1 bn of support, the government is also offering up to £125 million for research and development of related technology, which includes £13 m for establishing a new CCS research centre.
One Front End Engineering and Design study for CCS carried out by E.ON involved taking carbon from the UK's Kingsnorth power station via a CO2 pipeline and transferring it to the pressure-depleted Hewett gas field in the UK Southern North Sea, via a new platform, and wells with multiple penetrations. Another study by the ScottishPowser Consortium has been based on taking carbon from Scotland's Longannet power plant and injecting it into Shell's North Sea Goldeneye gas field.