UK’s Labour Party will refocus CfD regime to include CCS

09 July 2014 12:45 Source:ICIS

The UK’s main opposition party has set out plans to promote the development of carbon capture and storage (CCS) technology, designed to reduce carbon emissions from fossil-fuelled power plants, if it is elected into government next year.

Revealing its strategy to boost CCS development in a position paper, the Labour Party said it would attempt to get CCS “back on track” following the scaling back of the second CCS competition by the ruling Conservative-Liberal Democrat coalition government.

“The Labour Party is clear – as we shift to a low carbon economy, CCS is a necessity, not an option,” said shadow energy secretary Caroline Flint.

As part of its plans, Labour said it would ensure the new subsidy scheme for low carbon technologies called Contracts for Difference (CfD) would not prejudice against CCS and argued that the government’s focus on nuclear and renewables in the CfD process had cast doubts on the future of CCS within the framework, despite that CCS is technically eligible for CfD subsidy.

The party also intends to place greater onus on the role of the UK’s Green Investment Bank (GIB) to provide capital for projects as they near final investment decisions.

Meanwhile, the owner of one of the CCS projects that failed to secure investment under the government’s £1bn (€1.3bn) CCS commercialisation programme is in negotiations with a potential buyer from Norway.

CCS for the 630MW Don Valley gas-powered station in Yorkshire, which is owned by 2CO Energy, is already at an advanced stage of development ahead of a scheduled start of construction in 2016. Henry Evans

By Henry Evans