EU Shortlists Companies for CCS Funding

18 October 2009 (Last Updated October 18th, 2009 18:30)

The European Union (EU) has shortlisted six companies that will receive funding for carbon-capture and storage (CCS) power projects, an EU lawmaker has announced. The funds will be the first approved by the EU for CCS projects and shortlisted companies which includes E.ON, Endusa, Ital

The European Union (EU) has shortlisted six companies that will receive funding for carbon-capture and storage (CCS) power projects, an EU lawmaker has announced.

The funds will be the first approved by the EU for CCS projects and shortlisted companies which includes E.ON, Endusa, Italy’s Enel SpA, Vattenfall, the UK's Powerfuel and Poland’s Polska Grupa Energetyczna (PGE), the EU’s Chris Davies told Bloomberg.

The EU, which is planning to provide a total of US$1.56bn (€1.05bn) in funds, is believed to have cut short a list of companies from 13 to 6.

Enel's CCS project is likely to receive US$149.1m (€100m), while the remaining five companies are set to receive US$268.4m (€180m) each, according to Bloomberg.

Enel plans to use CCS technology at a new 660MW coal plant in Porte Tollo, Italy. E.ON will develop a coal-fired power plant in Rotterdam, the Netherlands, while Endesa builds a demonstration project at the Spain-based Compostilla power plant.

Vattenfall will use the funds to test two distinct CCS technologies at Jaenschwalde, Germany, while PGE will use it at its Poland-based Belchatow plant and Powerfuel for development of a 900MW plant in Hatfield, England.

The remaining amount of US$74.5m (€50m) is likely to finance ArcelorMittal's plan to capture CO2 from a steel unit in Florange, France, even though it has not been included in the list.

The EU could formally announce the awards as early as 16 November, according to Davies.