UK submits 12 applications for low-carbon energy funding

Twelve low-carbon energy projects in the UK entered the running for European Union (EU) funding today.

The government has submitted applications from the renewable energy and carbon capture and storage (CCS) schemes to a competition for three grants from a €4.5bn (£3.9bn) EU fund called the New Entrant Reserve (NER).

The applications include seven CCS projects, featuring gasification and post-combustion capture technology, and five renewable schemes to harness wave, tidal and offshore wind power.

Energy minister Charles Hendry said the projects demonstrated that the UK was at the cutting edge of low-carbon energy development.

‘Taking forward these sorts of technologies will be crucial to our move to a low-carbon economy, providing green jobs as well as helping us lower emissions and increase energy security,’ he added.

The NER scheme was set up by the European Investment Bank (EIB) to support CCS and renewable projects across the EU using funds raised through the Emissions Trading Scheme.

Successful projects will secure funding for up to 50 per cent of their relevant costs over a 10-year period for CCS and five years for renewables. Up to three projects may be supported for each member state.

The EIB will now spend nine months performing ’due diligence’ on the applications submitted to it, checking their financial and technical deliverability.

Then the European Commission will verify the eligibility criteria assessment and re-confirm with member states the public funding contribution for recommended projects, before making its award decisions.

The seven CCS applications are:

• Alstom Consortium: a new oxyfuel supercritical coal-fired power station on the Drax site in North Yorkshire;

• C.GEN: a new integrated gasification combined cycle (IGCC) power station (pre-combustion with CCS on the coal feed) in Killingholme, Yorkshire;

• Peel Energy CCS: post-combustion amine capture on a new supercritical coal-fired power station in Ayrshire, Scotland;

• Don Valley Power Project (formerly known as the Hatfield Project): a new IGCC power station in Stainforth, Yorkshire;

• A consortium led by Progressive Energy; a pre-combustion coal gasification project in Teesside, north-east England;

• Scottish Power Generation: post-combustion amine capture retrofitted to an existing subcritical coal-fired power station at Longannet, Scotland; and

• SSE Generation: post-combustion capture retrofitted to an existing CCGT power station at Peterhead, Scotland.

The five renewable applications are:

• POWER (Pentland Orkney Wave Energy Resource), which will deploy Aquamarine Oyster and Pelamis wave energy converters off the coast of the Orkneys;

• Kyle Rhea Tidal Turbine Array, which will deploy Marine Current Turbines ’SeaGen’ devices in Kyle Rhea, Islay;

• MeyGen Tidal Stream Project, which will deploy Atlantis Resources and Rolls-Royce/Tidal Generation tidal turbines in the Pentland Firth Inner Sound;

• Scottish Power Renewables Sound of Islay Demonstration Tidal Array, which will deploy Hammerfest Strom tidal turbines in the Sound of Islay; and

• Blyth Britannia, which will deploy Clipper Wind Power 10MW offshore wind turbines off Blyth in Northumberland.