UPDATE 1-UK attracts CCS funding interest from 16 bidders

LONDON, May 16 (Reuters) - At least 16 companies are
interested in participating in Britain's one-billion pound
competition to fund one or more carbon capture and storage (CCS)
projects, the government said on Wednesday, hoping to encourage
competitors to link projects together.
Companies including Shell, National Grid and
Centrica have signalled intention to apply for funding
but the government does not expect all registered bidders to
make a full application by July 3.
"This high level of interest proves that the UK is back on
track with CCS. From the outset, we are working through
collaboration with industry to ensure we make CCS a reality," a
spokesman for the ministry said.
Last month, Britain relaunched its competition to fund CCS,
a technology seen as key to reducing carbon emissions in the
power sector but which is still commercially unproven, after its
first attempt failed due to spiralling costs.
The government published a list of consortium lead bidders
on Wednesday to encourage competitors to create cluster projects
where various plants share infrastructure to reduce costs.
Britain's Energy and Climate Change Secretary told Reuters
on Monday that CCS cluster projects were a good approach to
apply for funding.
One such cluster project involves the White Rose CCS plant
proposed by British power producer Drax, France's Alstom
and BOC who are discussing linking up with a
Doncaster-based CCS project proposed by 2Co Energy and Samsung
C&T.
The government will reveal later this year or early next
year which projects will sign front-end engineering and design
contracts, synchronising the UK competition timetable with a
parallel CCS and renewable technology programme led by the
European Commission.

REGISTERED BIDDERS
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Air Liquide
Alstom
Centrica
Costain Energy & Process
CO2 Deepstore
Doosan Power Projects
National Grid
Peel Energy
Progressive Energy
Portland Gas Storage
SEQ
Shell
SSE
SSI
Summit Power
2Co