Plans to build a series of green coal-fired power stations in Britain remain in doubt due to delays for a £1bn eco-friendly power station pilot scheme.
Industry sources have stated that the two-year postponement of plans will delay the construction of a new fleet of coal-fired power plants.
In April this year, the UK’s climate change secretary Ed Miliband promised to fully concentrate on carbon capture and storage (CCS) technology.
CCS technology absorbs gases generated by fossil fuel power stations and stores them underground.
Miliband said the government would focus on up to four pilot CCS projects.
As the UK government establishes its climate change policy, a competition to construct the first station, declared in 2007, has been affected. This could mean the stations are at risk of losing out on cash from Europe.
Energy companies competing to construct the power station include E.ON UK, RWE Npower and Scottish Power.
An EU funding package allowing the UK to use €180m (£157m) for CCS projects has to be taken by the end of 2010.
The government has said that the first power station will be operational by its original goal of 2014, yet industry figures claim that the timetable could discourage energy companies from investing in the UK.