The funding was allocated under the European NER300 programme, which funds new renewable energy technology and CCS projects.
Capture Power is developing the project on land adjacent to the existing Drax Power Station, near Selby in North Yorkshire.
The project includes the development of a new 426MW coal-fired plant, which will generate enough energy for over 630,000 homes.
After completion, the project is expected to capture about 90% of the carbon emissions from the site which will be transported through a pipeline for permanent storage under the North Sea.
Capture Power CEO Leigh Hackett said in December 2013, the company entered into the FEED contract for the project as a preferred bidder in the UK CCS Commercialisation Programme.
"The NER300 award represents another significant milestone for us in our development programme and an important potential source of funding for the Project, as well as providing a strong signal for CCS in Europe," Hackett said.
Capture Power is a joint venture established by Alstom, Drax and BOC to develop the project in co-operation with National Grid.
National Grid will provide the CO2 transportation and storage infrastructure for the project.
UK Energy and Climate Change Secretary Edward Davey said, "White Rose will create thousands of green, local jobs and make a real difference to cutting carbon emissions."
Image: White Rose carbon capture and storage project model. Photo: Courtesy of Capture Power.
