Concern over EU carbon capture fund

London - Only one carbon capture & storage (CCS) project is likely receive EU funding under the first tranche of the NER300 programme for CCS demonstration projects, the Carbon Capture & Storage Association (CCSA) has warned.

Many other projects look set to miss out on gaining support under the Euro1.5-billion fund because the national governments involved – reportedly with the exception of France – have yet to confirm the level of co-funding they would provide.

In a joint letter – also signed by companies involved in UK CCS projects, including Alstom, BOC, Drax, E.ON, Linde, and National Grid - the CCSA urged the EU Commission to defer its selection of first-tranche CCS projects for a few months.

This, said the Association, would allow this dialogue and negotiation to take place before the launch of the second tranche. The extension, it added, could deliver two more CCS projects – in line with the original goal of the NER300 programme.

“If the projects had to re-apply for the second tranche of the NER300, that would cause a critical delay,” said CCS. “And if it means only one project is supported from the first tranche, it would further delay the meaningful demonstration of CCS in Europe notably in the power sector – whilst North America and other regions are proceeding with projects.”