Longannet carbon capture and storage (CCS) scheme in Scotland could collapse in weeks over a funding dispute between Scottish Power and the Department of Energy and Climate Change (DECC).
The à‚£1bn ($1.6bn) scheme to build a commercial-scale CCS pilot project the 2400 MW coal fired Longannet plant is a flagship project for the UK’s attempts to lead the development of CCS technology.
But Scottish Power, and its partners Shell and the National Grid, have just completed a detailed study of the CCS scheme that found heavier public backing would be needed to achieve commercial viability, reported the Guardian newspaper.
The companies now claim the scheme will cost at least à‚£1.5bn rather than the à‚£1bn allocated last year, according to newspaper reports.
A politician in the UK’s governing Conservative party told the Guardian that he expected the deal to collapse within weeks.
The Longannet scheme, which has been ongoing for four years, was by far the UK’s most advanced CCS project after E.ON backed out of plans to build a coal fired station with prototype CCS technology at Kingsnorth in Kent.
The UK has aimed to lead in CCS, although possibly outpaced by Canada and Norway. DECC has submitted seven CCS projects in the UK for European funding, out of a total of 13 groups now being assessed.
For more emissions control news click here