As reported, the funds would be matched by a similar sum from the UK government. The coal-fired plant is said to be the UK’s first carbon capture and storage demonstration plant. The work is expected to begin in 2010 and the CCS plant is expected to commence operations by 2014.
The Hatfield plant will use new CCS technology, which captures carbon dioxide released and pipes it under the North Sea where it is stored for several years.
A spokesperson of the Department for Energy and Climate Change (DECC) said: “The UK is in a strong position on CCS and we expect to be one of the first countries in the world to demonstrate this technology.”
Reportedly, a total funding of GBP 2.4 billion is required for the Hatfield power plant.