UPDATE 3-UK scraps 1 bln stg carbon capture technology scheme

Wed Nov 25, 2015 1:04pm EST
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* 2 major CCS projects in Britain at risk

* Comes ahead of global climate talks in Paris next week (Adds comments by Capture Power, Shell)

By Susanna Twidale

LONDON, Nov 25 (Reuters) - Britain has scrapped plans to spend up to 1 billion pounds ($1.5 billion) to help commercialise the technology for capturing carbon dioxide emissions from power plants and storing them underground, the government said on Wednesday, putting two major projects at risk of being cancelled.

The announcement comes just days before negotiators from more than 190 countries are due to meet in Paris to thrash out a global deal to cut greenhouse gas emissions blamed for rising temperatures.

"Following the Chancellor's Autumn Statement, HM Government confirms that the 1 billion-pound ring-fenced capital budget for the Carbon Capture and Storage (CCS) Competition is no longer available," the government said.

Britain has two potential large-scale CCS schemes, one being developed at an existing gas-fired plant in Peterhead, Scotland, by Shell and utility SSE.

A second, White Rose, is being worked on at the UK's biggest coal-fired power station by the plant operator Drax and engineering consortium Capture Power, which includes GE and BOC, part of the Linde Group.

"It is too early to make any definitive decisions about the future of the White Rose CCS Project. However, it is difficult to imagine its continuation in the absence of crucial government support," Leigh Hackett, CEO of Capture Power, said in a statement.   Continued...