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Longannet carbon capture scheme scrapped Longannet carbon capture scheme scrapped
(40 minutes later)
Plans for the UK's first carbon capture project at the Longannet power station in Fife have been scrapped, the energy secretary has confirmed.Plans for the UK's first carbon capture project at the Longannet power station in Fife have been scrapped, the energy secretary has confirmed.
Chris Huhne announced the failure to reach a "deal" with power companies to capture carbon dioxide emissions at the plant and pipe them under the sea.Chris Huhne announced the failure to reach a "deal" with power companies to capture carbon dioxide emissions at the plant and pipe them under the sea.
Mr Huhne blamed problems with the length of pipeline needed.Mr Huhne blamed problems with the length of pipeline needed.
But he said the government hoped other schemes could work, indicating interest at Peterhead in Aberdeenshire.But he said the government hoped other schemes could work, indicating interest at Peterhead in Aberdeenshire.
Responding to Mr Huhne's announcement, Scotland's First Minister Alex Salmond said it was "deeply disappointing".
Environmental group WWF Scotland said scrapping the scheme meant four years had been wasted in the battle to tackle climate change.
Scottish Power's coal-fired plant at Longannet had been the only remaining site in the UK government competition for funding worth up to £1bn to develop the CCS (Carbon capture and storage) technology.Scottish Power's coal-fired plant at Longannet had been the only remaining site in the UK government competition for funding worth up to £1bn to develop the CCS (Carbon capture and storage) technology.
In the Commons, Mr Huhne said: "Despite all parties working extremely hard on the first carbon capture and demonstration project at Longannet, we have not been able to reach a satisfactory deal as the prime minister pointed out and we will therefore not be proceeding with the project and this decision is purely about the viability of this particular project.
"It's not in any way a reflection on our commitment to the CCS programme."
Longannet, which is the UK's second largest coal-fired power station and Europe's third largest, is among the biggest polluters in the country.Longannet, which is the UK's second largest coal-fired power station and Europe's third largest, is among the biggest polluters in the country.
It produces energy for two million people and emits between seven million and eight million tonnes of carbon dioxide (CO2) a year.It produces energy for two million people and emits between seven million and eight million tonnes of carbon dioxide (CO2) a year.
The carbon capture scheme hoped to pump emissions from Longannet into depleted oil and gas fields in the North Sea.The carbon capture scheme hoped to pump emissions from Longannet into depleted oil and gas fields in the North Sea.
Under the plans, 260km of pipe would have carried the CO2 in the first project of its kind. Under the plans, 260km of pipe would have carried the CO2, in the first project of its kind.
The energy secretary told MPs the length of pipeline needed to take the liquified emissions to the undersea reservoirs made the scheme unviable. The energy secretary told MPs the length of pipeline needed to take the liquified CO2 to the undersea reservoirs made the scheme unviable.
He said studies into carbon capture would be published and that the government was "absolutely confident" future projects would go ahead.He said studies into carbon capture would be published and that the government was "absolutely confident" future projects would go ahead.
Mr Huhne said interest has still been expressed by Peterhead power station and he was confident a carbon capture scheme could be brought online for £1bn.Mr Huhne said interest has still been expressed by Peterhead power station and he was confident a carbon capture scheme could be brought online for £1bn.
'Vital technology''Vital technology'
In the Commons, Mr Huhne said: "Despite all parties working extremely hard on the first carbon capture and demonstration project at Longannet, we have not been able to reach a satisfactory deal as the prime minister pointed out and we will therefore not be proceeding with the project and this decision is purely about the viability of this particular project.
"It's not in any way a reflection on our commitment to the CCS programme."
A year ago, the Longannet project became the only entrant in a CCS competition run by the UK government for £1bn of funding, after energy giant E.On dropped plans for a plant at its proposed Kingsnorth power station in Kent.A year ago, the Longannet project became the only entrant in a CCS competition run by the UK government for £1bn of funding, after energy giant E.On dropped plans for a plant at its proposed Kingsnorth power station in Kent.
In June, Scottish Power and its partners National Grid and Shell UK announced plans to create an onshore pipeline carrying up to two million tonnes of CO2 as part of the CCS scheme to pump emissions from Longannet to the North Sea.In June, Scottish Power and its partners National Grid and Shell UK announced plans to create an onshore pipeline carrying up to two million tonnes of CO2 as part of the CCS scheme to pump emissions from Longannet to the North Sea.
A statement from the CCS Consortium said it had completed extensive design work on the technology.
Speaking on behalf of the consortium, Scottish Power's generation director Hugh Finlay said: "The consortium is immensely proud of the work we have completed in the last four years.Speaking on behalf of the consortium, Scottish Power's generation director Hugh Finlay said: "The consortium is immensely proud of the work we have completed in the last four years.
"Our combined efforts have seen this potentially world-changing technology develop from being a concept in a laboratory to a definitive blueprint that could be implemented.""Our combined efforts have seen this potentially world-changing technology develop from being a concept in a laboratory to a definitive blueprint that could be implemented."
He added: "As a result of the study we now understand how the CCS process works from power station to storage site.He added: "As a result of the study we now understand how the CCS process works from power station to storage site.
Greener mix
"This gives us great insight into the physical infrastructure that we need to support it, the regulatory framework it fits within and the organisational model of a CCS business.""This gives us great insight into the physical infrastructure that we need to support it, the regulatory framework it fits within and the organisational model of a CCS business."
Scotland's First Minister Alex Salmond said Mr Huhne's announcement was "deeply disappointing". Mr Salmond said: "At the end of the day, this technology requires the courage and the vision to make the investment happen, and that is what has been lacking in successive Westminster administrations.
He said: "It is just as bad a decision as when the previous UK government abandoned the Peterhead pre-combustion gas carbon capture project four years ago - which the current coalition parties rightly criticised in 2007. "At a time when North Sea revenues are coming in at record levels, it was surely not too much to expect that the Treasury would make the necessary funding commitment for Longannet to go forward.
"The fact is that the UK government's Electricity Market Reform process is undermining industry confidence and investment planning - with higher costs due to the Carbon Floor Price, and uncertainty over long-term support for carbon capture and storage. "The cost would have been less a 10th of this year's alone estimated North Sea revenues of £13.4bn."
"Between public and private investment, Longannet would have been a £2bn investment - exactly what is needed in the present economic climate. Labour's shadow energy minister Tom Greatrex said: "Today's move highlights the dead hand of the Treasury in scuppering moves towards a greener energy mix.
"It underlines the need for a Scottish energy strategy so that we have proper planning, and apply our energy wealth of today to ensure that we are equipped for the technologies of tomorrow." "It risks losing our competitive advantage in developing carbon capture - engineering expertise and valuable skills that we could export around the globe.
"It is vital that this money is not recycled into the Treasury but used for carbon capture and storage projects.
"Without those guarantees the government's commitment to energy, the environment and green jobs will be increasingly viewed as all talk, no action."
Dr Dixon of WWF Scotland said the news was "massively disappointing".
He said: "If technical and economic hurdles can be overcome CCS has the potential to help reduce emissions at thousands of coal power stations around the world.
"However, almost four years after launching its funding competition, plans for CCS in the UK have descended into farce."