The UK’s first commercial-scale carbon capture and storage (CCS) project at Longannet in Scotland has been scrapped, after project negotiations broke down.
Energy secretary Chris Huhne has confirmed this afternoon that negotiations between the government and energy company ScottishPower, which runs the 2.GW Longannet power station, have failed. “A decision has been made not to proceed with Longannet but to pursue other projects with the £1bn pounds funding made available by the Government,” a statement by the Department for Energy and Climate Change (Decc) said.
ScottishPower, the utility company which runs the Longannet power station, was the only remaining bidder in the Department of Energy and Climate Change (Decc) CCS competition which was launched to award up £1bn of funding to develop the technology at a commercial scale.
“£1bn is enough to demonstrate this vital new technology in the UK, but it’s got to be spent in the most effective way,” said secretary of state for energy and climate change Chris Huhne. “Despite everyone working extremely hard, we’ve not been able to reach a satisfactory deal for a project at Longannet at this time, so we’ve taken the decision to pursue alternative projects.”
Decc said the £1bn was still on offer and it would be expecting bids from England and Scotland when bidding re-opens. Decc said it will now focus on publishing the government’s long term vision for CCS deployment, an industry action plan and details of the selection process for further CCS projects.
Scottish first minister Alex Salmond last week pressed Huhne for a “speedy resolution” to industry rumours that the project could collapse.