July 9, 2013 / 3:21 PM / 4 years ago

Capture Power Ltd says it is sole bidder for EU CCS cash

* Capture plans CCS-fitted coal plant near Drax station

* Application for funding submitted to EU Commission

LONDON, July 9 (Reuters) - Capture Power Ltd, formed by Alstom SA, Drax Group Plc and BOC Group , is the sole bidder for funding for a carbon capture and storage (CCS) project under a European Commission scheme, it said on Tuesday.

Many governments hope CCS will help fight climate change by trapping and burying greenhouse gas emissions from power plants and heavy industries.

Although proven to work technologically, CCS has not yet been tested on a commercial scale.

Capture Power plans to develop a new 426 megawatt coal-fired power plant fitted with CCS, known as White Rose, near Drax power station in north Yorkshire in Britain.

Ninety percent of the carbon dioxide produced by the plant will be captured and transported by pipeline for permanent storage deep beneath the North Sea seabed, the firm said.

“We continue to believe that White Rose, based on oxy-combustion technology, will demonstrate the importance of CCS-enabled power stations to the future energy mix of the United Kingdom through providing clean, reliable and affordable electricity,” said Leigh Hackett, Alstom Vice President CCS.

A Commission document showed last week a single, unnamed Britain-based CCS project had applied for funding in the second round of the EU scheme, known as NER300.

Britain is running a separate 1 billion-pound ($1.49 billion) finance scheme for CCS in which it selected White Rose and another project by Royal Dutch Shell and SSE in March.

The European Commission, together with the European Investment Bank and EU member states, jointly operate the NER300 financing competition in which governments can shortlist renewable and CCS projects for European subsidies.

EU member states can apply for NER300 funding to finance half of a renewable or CCS project if the national government guarantees funds to cover the remaining 50 percent of the costs.

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