EU invests USD5.4bn in CCS and renewable energy

Mon Feb 8 2010, 10:12 AM UTC

EU member states have approved plans to invest around EUR4bn (USD5.4bn) in carbon capture and storage (CCS) and new renewable energy technologies. The funding will be distributed by the European Investment Bank, which will receive 300m carbon allowances from a reserve fund of the EU Emissions Trading Scheme.

The first round of funding will be awarded by the end of next year and will use 200m allowances to support eight CCS demonstration projects and 34 renewable energy projects. The second round will utilise the remaining 100m permits, which are expected to be awarded by the end of 2013.

Each EU member state will receive funding to develop between one and three projects. Each project will have to employ innovative technologies which are between demonstration and pre-commercialisation-scale in order to secure financing.

The CCS projects will include hydrocarbon reservoir storage and saline aquifer storage. The new renewable energy technologies include ocean thermal energy conversion and systems for the conversion of cellulose-based biomass into biofuels, biogas or electricity. The first projects are expected to begin operating by 2015.

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