UK energy secretary Chris Huhne has secured a funding of £1bn ($1.6bn) for the development of carbon capture and storage (CCS) demonstration projects.
The funding secured on behalf of Department of Energy and Climate Change (DECC) is only half the sum requested by it, reported powergenworldwide citing the Guardian report.
It was originally planned to have four CCS demos, which were backed by the coalition, and now that the sum is half of the requirement, doubts have cropped up regarding the the rest of the funding for the CCS project.
Industry insiders were concerned that they would not go for a levy on bills to fund the remaining three because it would end up having to count towards the government expenditure tally.
UK will be able to meet its legally bound target for reducing greenhouse gas emissions over the next 20 years, provided, CCS is seen as a vital step towards crafting an energy sector.
But the project requires up-front funding and there had been fears that the project would lose out in the comprehensive spending review .