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20.10.11

Longannet CCS project abandoned

Longannet coal-fired power station in Fife will no longer receive funding for a Carbon Capture and Storage (CCS) project, after partners voiced concerns about its commercial viability, and that it needed more state support.

The Government had pledged £1bn towards the CCS project, but developers suggested £1.5bn was needed to make it viable.

No compromise could be reached, and the Government has now announced that “a decision has been made not to proceed with Longannet but to pursue other projects with the £1bn funding”.

Speaking during Prime Minister’s Questions, David Cameron said: “What I can say is that the funding we set aside for carbon capture and storage is still there, is still available. Clearly the Longannet scheme isn't working in the way they intended. But the money from the government, the support from the government for this vital technology is there.”

Energy Secretary Chris Huhne stated that the Government would spend the money in the ‘most effective way’ on alternative projects.

Matthew Spencer, director of the Green Alliance environmental think tank, told reporters: “It's disappointing that the CCS project at Longannet won't go ahead, but by retaining the £1bn government promised for CCS it can now get our programme back on track.

“The UK has an opportunity to be a market leader in CCS, with excellent alternative projects that can be delivered quickly.”

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