The government is expected to spend up to £9.5bn on its four CCS competition projects over the next 15 years, including £1bn already earmarked for the first commercial-scale CCS demonstration project.

Department of Energy and Climate Change (DECC) secretary Chris Huhne said that the government is reasserting its mission to lead the world on CCS, by opening funding process to what could be one of the first ever commercial-scale CCS projects on a gas-fired plant in the world.

"We are determined to ensure the UK continues to be at the forefront of CCS development – and this sets us on course to lead the world in the development of CCS on gas as well as coal." Huhne said.

According to DECC, the government is not imposing the same carbon emission constraints on gas-fired power plants as on coal-fired plants in the short or medium term.