The flagship scheme is the sole remaining bidder in the UK’s first CCS competition, initiated in 2007 by the previous Labour government. Consortium members have been in negotiations with the Department of Energy and Climate Change (DECC) over a public funding award of up to £1 billion.
According to BBC reports, both Scottish Power and DECC have insisted that talks are continuing, but well-placed industry and political sources are quoted as saying the process is “pretty much over” and a statement is expected shortly.
Chris Littlecott, senior policy adviser at Green Alliance, told ZERO: “The UK’s coalition government should be applauded for committing funding to the long-running CCS competition and for trying to reach a deal with the companies involved.
“The Longannet project benefits from public support in the local area and could be a positive first step towards developing a CO2 infrastructure network in Scotland. In these tough economic times the project partners need to deliver value for money for the public funding on offer, and alternative options should be considered.
“What we must remember, however, is that the UK has other excellent CCS projects that could also enter operation on a similar timescale. It is important that any difficulties with Longannet don’t delay UK government commitments to co-financing these projects that are likely to win funding from the EU’s NER300 process.”
Earlier this year, DECC submitted seven UK-based CCS projects for European funding, including Longannet. It is thought that at least three of the other schemes could start operating by 2016 if selected for funding.
A DECC spokesman told the UK’s Guardian newspaper that Longannet was only one CCS project and the government still planned to choose another three that could be eligible for cash from an EU fund by the end of the year.
Indira Mann, on behalf of ZERO, said: “Longannet unites companies from either side of the North Sea, and has the potential to take that much-needed step towards significantly tackling the UK's emissions.
"It would give momentum to other CCS initiatives across the world, and it would also support the UK and Scottish governments' claims to be at the forefront of combating climate change. The major players should look for solutions that would enable this initiative, into which so much has already been invested, to become a reality.”
