Four bidders have been shortlisted for the next phase of the UK’s £1bn carbon capture and storage (CCS) competition.

The four were selected from eight bids received after an evaluation process that considered project deliverability, value for money, and the government’s timetable to deliver “a cost-competitive CCS industry in the 2020s”.

The successful bidders will next take part in commercial negotiations with the government before decisions on which projects to support further are taken next year.

UK Energy Secretary Ed Davey said the four projects “have all shown that they have the potential to kick-start the creation of a new CCS industry in the UK, but further discussions are needed to ensure we deliver value-for-money for taxpayers”.

He added that today’s announcement “is an important step towards an exciting new industry, one that could help us reduce our carbon emissions and create thousands of jobs”.

Three of the UK’s shortlisted bids also applied for European Commission funding from New Entrant Reserve (NER) allowances.

The government has written to the Commission to inform them that it is willing to support these projects in the Commission’s competition, subject to their ultimate success in the UK competition. The Commission will make a final decision on whether to support a UK CCS project at the end of the year.

The four short listed bids, all full chain capture, are:

  • Captain Clean Energy Project: A proposal for a new 570 MW, fully abated coal Integrated Gasification Combined Cycle (pre-combustion) project in Grangemouth, Scotland with storage in offshore depleted gas fields. Led by Summit Power, involving Petrofac (CO2 Deepstore), National Grid and Siemens.
  • Peterhead: A 340 MW Post-combustion capture retrofitted to part of an existing 1180 MW Combined Cycle Gas Turbine power station at Peterhead, Scotland. Led by Shell and SSE.
  • Teesside Low Carbon Project: A pre-combustion coal gasification project (linked to 330 MWe net power generating capacity fuelled by syngas with 90 per cent of CO2 abated) on Teesside, North East England with storage in depleted oil field and saline aquifer. A consortium led by Progressive Energy and involving GDF SUEZ, Premier Oil, and BOC.
  • White Rose Project: An oxyfuel capture project at a proposed new 304 MW fully abated supercritical coal fired power station on the Drax site in North Yorkshire. Led by Alstom and involving Drax, BOC and National Grid.

Alstom Thermal Power’s chief technology officer Charles Soothill told PEi recently that projects like White Rose are “turning back the clock on climate change. This is the only industrial way of reversing the [emissions] process and you can do it with the power plants you already have.”