UKCCSC news 17 November 2006

Hi Folks, Here are a couple of news items.

The first has been long awaited by the CCS community:

1) London Convention on dumping at sea amended to allow storage of CO2 under the seabed. This apparently over-rides the Ospar convention that also prohibited dumping.

Storage of carbon dioxide (CO2) under the seabed will be allowed from 10 February 2007, under amendments to an international convention governing the dumping of wastes at sea.

http://www.londonconvention.org/News.html (look for “CO2 sequestration announcement”)

2) Centrica plc press release alert service. 8 November 2006

Centrica acquires option in UK’s first complete clean coal project

Centrica plc today announced it has acquired an option to participate in what would be the UK’s first complete clean coal power generation project for a total of £7.15 million. The agreement, with Progressive Energy Limited, provides Centrica with an 85 per cent interest in development company Coastal Energy Limited, which will seek full consents for the right to construct a new clean coal power station in Teesside, UK.

If progressed, the project would be the first to combine Integrated Gasification Combined Cycle (IGCC) and Carbon Capture and Storage (CCS) capabilities, and would lead to the development of a ‘clean coal’ power station to supply electricity for British Gas customers, together with a pipeline and storage project to capture the CO2 emissions. Centrica will obtain a fixed price option to acquire the remaining shares in Coastal Energy at the end of the two year development phase. Exercising the option would enable Centrica to negotiate an engineering, procurement and construction (EPC) contract, ready for full construction.

Under the same agreement, Centrica will also acquire a 55 per cent interest in Coots Limited, a CO2 pipeline company. Subject to further financing, this would provide a full carbon capture and storage solution to dispose of the power station’s emissions in the North Sea through agreements with existing producers. Sam Laidlaw, Chief Executive of Centrica, said: “This landmark agreement gives Centrica the option to take advantage of the environmental and economic benefits offered by emerging clean coal technology and could lead to the development of the UK’s first complete clean coal plant.”

“It offers the potential to increase the diversity of our power generation, while underpinning our commitment to source low carbon and competitively priced electricity for our British Gas customers.”