From: Reuters
Published March 31, 2008 10:28 AM

E.ON enters UK carbon capture competition

LONDON (Reuters) - E.ON has entered its proposed coal-fired power plant project at Kingsnorth for the British government's carbon capture and storage (CCS) competition, the German utility said on Monday.

The closing date for entries in the competition for hundreds of millions of pounds of government funding for the first large scale CCS project in Britain is Monday.

Britain is still consulting on how coal-fired power stations must be designed so that they can have CCS systems fitted later, once the unproven technology to bury harmful carbon emissions from power plants underground has been developed.

E.ON also asked the government to put off making a planning decision on the Kingsnorth coal plant until it has decided exactly what a "CCS ready" power plant is.

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"That is also why we are also proposing to Government that the Kingsnorth planning decision is made following their consultation process, when we will all know exactly what is required by the Government for a station to be deemed CCS-ready," Paul Golby, Chief Executive of E.ON UK, said in a statement.

CCS is seen by its supporters as a potential savior for coal-fired power generation and the environment, while environmentalists argue it could spur a wave of new "CCS ready" plants to pollute the atmosphere for years before capturing the planet-warming gas becomes a reality.

Rival German-owned utility RWE npower said earlier this month it planned to enter the government competition which is aimed at making billions of pounds from exporting the technology worldwide.

(Reporting by Daniel Fineren)

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