The proposed project will see the development of capture technology to a stage where it has completed full scale demonstration by 2015 and ready for adoption into full scale commercial power applications by 2020.

ETI said that bidders will need to demonstrate and justify how their approach will enable their technology to reach a state of development that will allow future investors to start engineering the design of a power station using this next generation technology in 2015, with operation commencing in 2020.

It has already completed an extensive analysis of likely future UK requirements for new build and carbon capture and storage (CCS) retrofit power generation and the intention is to seek detailed and specific proposals for a technology validation and demonstration program of a particular approach to new build coal with CCS as part of its wider portfolio of CCS developments.

David Clarke, chief executive of ETI, said: “Capturing the CO2 emissions from fossil-fueled power stations using the technologies currently available can increase the capital costs of a new power station by between 50 and 100% and significantly reduce power output or increase fuel consumption.

“This project would enable the technology to catch the ‘second wave’ of CCS implementation in the 2020s following on from the first phase of plants expected to be built between 2015 and 2020 as part of the Department for Energy and Climate Change’s demonstration projects.”