E.ON boss demands more support for carbon capture and storage

London -  E.ON has called for the UK government's forthcoming coal consultation to identify sufficient incentives for companies developing CCS. Providing such incentives are put in place, the company has also committed to fit the technology to its proposed coal units at Kingsnorth power station.

Speaking at the Adam Smith Institute's Future of Utilities conference, Paul Golby, E.ON's UK chief executive, outlined the company's investment plans for CCS and welcomed the UK Prime Minister Gordon Brown’s support for CCS investment at the Lancaster House nuclear conference last week.

"While we at E.ON will continue to invest tens of millions in vigorously pursuing our ambitious CCS development programme, we need to see a similarly vigorous approach to developing the financial incentives that need to be in place if we want to invest faster than the carbon market will dictate," said the E.ON UK boss.

"What we are saying today is that the time is right to urge the government to do what is necessary. Let us complete the technical development of CCS while you fund the difference between abated and unabated fossil," he added.

The company also announced the start of field work to identify potential carbon dioxide (CO2) pipeline routes in Kent. The survey work aims to find the best locations for the pipelines that could eventually be used to carry captured CO2 from the proposed cleaner coal units at Kingsnorth to North Sea gas fields for storage.

"This is an important step in developing the options for CCS development at Kingsnorth and, subject to us achieving a positive decision on our planning application, is another indication of E.ON's commitment to completing the development of CCS," said Golby.

"We remain committed to the government's CCS demonstration competition, which is a great start but what we desperately need now is action. Progress to date has been too slow and I very much hope to see signs of movement soon, which is why we've decided to push forward with developing options for our own project."