UPDATE 1-UK attracts CCS funding interest from 16 bidders

Wed May 16, 2012 9:32am EDT

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
 ------------------
 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
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