The Zero Emissions Platform (ZEP), a European Union (EU) and industry funded initiative, has said in a report that power plants fitted with carbon capture technology will need government support beyond 2020, especially following a sharp drop in carbon prices.

The EU’s emissions trading scheme (ETS) requires the purchase of EU allowances (EUA) in a scheme partly intended to make green technologies competitive.

The price of EUAs has fallen 25 per cent in the last month.

The ZEP report said that carbon capture and storage (CCS) would need continued support after 2020 in order to compete with unconstrained fossil fuel and to give energy companies time to fine-tune the technology.

Graeme Sweeney, chair of ZEP, said: “It’s likely that it will require additional support over and above what’s provided by the EU ETS to enable deployment in the early 2020s.

“However, fossil fuels with CCS are cost competitive with offshore wind, solar and nuclear.”

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