2Co Energy has acquired Powerfuel Power and its carbon capture and storage (CCS) Hatfield project located in South Yorkshire, UK.
2Co Energy will rename the project as Don Valley power project which is expected to generate about 900MW of low-carbon power from 2015-2016.
The CCS will capture and store up to 5 million tonnes per annum of CO2 securely and permanently deep under the seabed of the North Sea.
The firm will also secure a financial guarantee which will enable it to draw the EUR180m ($255.5m) grant from the European Commision to make a pre-financing payment of EUR45m ($63.8m).
Built in partnership with the UK National Grid, the project received the EU grant in 2009.