The interim report reveals that British gas and coal power plants equipped with CCS could be cost competitive with other forms of low-carbon electricity generation.
Critically, the sector would generate electricity at a levelised cost approaching £100 per megawatt hour (MWh) by the early 2020s, and at a cost below £100 per MWh thereafter.
Energy and Climate Change Secretary Edward Davey highlighted that UK is recognised as a world leader in the development of this crucial technology.
"The findings of this report show the great potential ahead for the industry in the UK," Davey added.
"By bringing its costs down, CCS can be cost competitive with other low carbon technologies as early as the 2020s."
The Crown Estate energy and infrastructure director Rob Hastings said, "With many of the UK’s fossil fuel plants set to be decommissioned soon and with challenging EU targets for carbon reductions, it’s welcome news that CCS looks set to compete as a major player in the nation’s low carbon future."
The report was undertaken as a collaboration between The Crown Estate and the Department of Energy and Climate Change (DECC).
