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NER300

Brief description:

"NER 300", the world's largest demonstration programme for low-carbon technologies, was launched in 2008 as part of the ETS directive. It is supposed to act as a catalyst for the demonstration of new low carbon technologies on a commercial scale.

"NER300" is the nickname of a financing instrument managed jointly by the European Commission, European Investment Bank and Member States, so-called because Article 10(a) 8 of the revised Emissions Trading Directive 2009/29/EC contains the provision to set aside 300 million allowances (rights to emit one tonne of carbon dioxide) in the New Entrants’ Reserve of the European Emissions Trading Scheme for subsidising installations of innovative renewable energy technology and carbon capture and storage (CCS). The allowances will be sold on the carbon market and the money raised - which could be as much as 4.5 bn EUR if each allowance is sold for 15 EUR.

CCS demonstration project categories:

power generation: pre-combustion min. 250 MW;
power generation: post-combustion min. 250 MW;
power generation: oxyfuel min. 250 MW;
industrial applications implementing

(a) CCS on refineries with 500kt/y stored CO2 from one or more sources within the refinery;
(b) CCS application to cement kiln with 500kt/y stored CO2;
(c) CCS application for primary production routes in iron and steel production with 500kt/y stored CO2; or
(d) CCS application for primary production routes in aluminium production with 500kt/y stored CO2 - project sub-categories;

Entry into operation by 31 December 2015 for the first tranche has to be demonstrated as realistic;
Project has to implement the full chain (capture, transport, storage);
The capture rate has to be at least 85% of CO2 from the flue gases to which capture is applied;

Nominated projects

For the member states' submission of projects to the European Investment Bank by 9 May 2011, a total of 13 projects were submitted. An overwhelming amount of projects were from the UK (7 projects). France, Germany, Italy, Netherlands, Poland and Romania submitted one project each.

These are the projects in detail:

Alstom Limited Consortium (UK)

C.GEN (UK)

Peel Energy CCS Ltd (UK)

Don Valley Power Project (UK)

Progressive Energy Ltd (UK)

Scottisch Power Generation Limited (UK)

SSE Generation Limited (UK)

Air Liquide (NL)

Porto Tolle (Italy)

Jänschwalde (Germany)

Belchatow (Poland)