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CCS could compete with nuclear by 2020s

Fossil fuel generation armed wth carbon capture and storage (CCS) could be cost competitive with other forms of low carbon generation such as nuclear power by the 2020s, according to a government and industry interim report out today.

The CCS cost reduction task force - comprising of the Department for Energy and Climate Change, the Crown Estate and industry - said the sector will be able to generate electricity at a levelised cost near to £100 per MWh by the early 2020s.

Cost reductions will be achieved through investment in large offshore CO2 storage clusters, investment in large power stations and reducing risk in the sector, according to the report.

Today’s report comes after the government selected a shortlist of four schemes to receive up to £1bn of funding to develop commercialisation of their CCS projects last month.

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