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Fossil fuelled power plants fitted with carbon capture and storage could compete on cost with nuclear and renewables by 2020, according a study led by the CCS Association.

The sector has the potential to generate electricity at around £100 per megawatt hour by the early 2020s and significantly below that thereafter, the study found. 

But to achieve cost reductions for CCS electricity, it recommended the UK should invest in large power stations, large offshore C02 storage clusters and large shared pipelines.

Energy secretary Ed Davey said: “The findings of this report show the great potential ahead for the industry in the UK. By bringing its costs down, CCS can be cost competitive with other low carbon technologies as early as the 2020s. Deployment at scale will bring investment and jobs, not just to the power sector but across the whole supply chain, including our offshore oil and gas industries 

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