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A key UK CCS project has been left off the shortlist for £1.2 billion of European cash allocated for carbon abatement projects.
SSE’s Peterhead scheme is the only gas project bidding for funding under both the European Union’s NER300 competition and the UK’s £1 billion competition. Although it is on the NER300 reserve list, Peterhead has not made the eight-strong shortlist because of the way the competition ranks carbon abatement potential.
Two or three NER300 projects will be funded. 2CO’s Don Valley Power project tops the list. Teesside is fourth, followed by the White Rose consortium. C.Gen’s North Killingholme project, although not part of the UK competition, is sixth. Projects in Poland and Holland take second and third place.
Former energy secretary Chris Huhne said last year the two competitions would be “aligned” after the Longannet project collapsed, but Decc said the Brussels competition “does not necessarily have any bearing on what we fund”.
This article first appeared in Utility Week’s print edition of 20 July 2012.
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