The European Investment Bank on Tuesday (April, 15) announced the completion of its latest sale of carbon allowances under the NER 300 programme (300 million emission allowances).
The bank, acting on behalf of the European Commission, started to sell the first tranche of 200 million EUAs on December 2011 and it concluded the first phase of sales in September 2012, raising around €1.5 billion. The second phase regarding the sale of the last 100 million EU allowances started in November 2013 and ended on 11 April 2014 raising €548 million. A total of more than 2 billion will be employed in carbon capture and storage schemes and innovative renewable energy projects across Europe in order to reach a commercial scale, the EIB said.
The White Rose project in North Yorkshire, UK, is the only CCS scheme among the 32 project proposals submitted by member states, and it is likely to receive a €300 million EU grant after the British government announced it would back the scheme through its CCS Commercialisation Competition, Reuters reported. The project involves capturing around 90% of the carbon dioxide from a new coal-fired plant run by the British utility Drax, before transporting offshore and storing it in a saline rock formation beneath the North Sea.
If approved, the White Rose project (developed by a consortium called Capture Power Ltd) could become EU’s first CCS plant. So far the EU scheme was unable to fund CCS development as all candidate plants in NER 300 programme either pulled out or were deemed ineligible after member states could not provide financial backing.
According to EIB’s statement, details of awards to successful projects are expected to be announced later this year.