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Iberdrola Set to Get Up to $1.6 Billion for Carbon Capture Plan
2010-10-20 14:28:09.528 GMT
By Sally Bakewell
Oct. 20 (Bloomberg) -- Iberdrola SA's Scottish unit is set
to win as much as 1 billion pounds ($1.57 billion) of U.K.
government money to demonstration carbon-capture-and-storage
plant at the Longannet power station in Fife.
The project, developed by ScottishPower Ltd., is the only
entrant in a competition underway for the funding that will fit
the technology, which gathers CO2 emitted from burning fossil
fuels and injects it underground for permanent storage. E.ON AG
pulled out its own proposal at Kingsnorth earlier today.
The Treasury said today it would grant the sum for one of
the "world's first commercial scale CCS demonstration projects
at a power station." A spokeswoman for the Department of Energy
and Climate Change said the Longannet CCS project was the sole
entry in the competition thus would receive the funds, though it
was not "a done deal."
"It's almost unnecessary to have an announcement -- it's a
one-horse race," said Jeff Chapman, chief executive of the U.K.
Carbon Capture and Storage Association.
The project must meet necessary criteria and go through the
government procurement process, she said. The competition is not
open to further entrants, she said.
''The ScottishPower consortium remains committed to the
carbon capture and storage project at Longannet, and we are on
schedule with our front end engineering and design work,'' Paul
Ferguson, a spokesman for ScottishPower, said by e-mail.
Longannet, a 2,400-megawatt coal-fired power station on
Scotland's east coast, will be ''retrofitted'' with the carbon
dioxide capturing technology. ScottishPower expects to fit the
technology by 2014, according to its website.
For Related News and Information:
Top renewable-energy news: GREEN <GO>
New Energy Finance top stories: TNEF <GO>
Most-read CCS news: MNI CARBCAPT <GO>
--Editors: Reed Landberg, Alex Devine
To contact the reporter responsible for this story:
Sally Bakewell in London at +44-20-3216-4332 or
Sbakewell1@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net
IBE SM {<Equity>}CN
