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As of September 30, 2016, the Carbon Capture and Sequestration Technologies program at MIT has closed. The website is being kept online as a reference but will not be updated.

EU CCS Financing Overview

A CCS project in the European Union (EU) may apply to receive funding from two CCS funding programs: The EU Energy Program for Recovery (EEPR) and the NER300.  These are described in more detail below. Both programs are under the European Commission and are while this money is significant, the EEPR and NER300 do not cover the total cost of a CCS demonstration project and projects still require government support and private investment.

Some EU member governments have set aside funding for CCS projects, for example the UK that has a £1 billion Carbon Capture Scheme Competition. However most member governments haven’t designated a specific CCS project fund and projects have to apply for government funding through other avenues.
Minor funding sources may come from FP7 but these are reserved for small-scale research and development projects.


NER300 is a financing instrument managed jointly by the European Commission (EC), the European Investment Bank and Member States.  Article 10a 8 of the revised Emissions Trading Directive 2009/29EC contains the provision to set aside 300 million emission unit allowances from the New Entrance Reserve (NER) to demonstrate CCS and innovative renewable energy technologies. This includes funding for up to 12 large-scale CCS demonstration projects. The allowances will be sold on the carbon market and the money raised will be made available to the projects as they operate. EU member states can apply for NER300 funding to finance half of a renewable or CCS project if the national government guarantees funds to cover the remaining 50% of the costs.
There were 22 CCS applicants for the first round of NER300 funding. In July 2012, the European Commission released a ranking of the projects. The top 3 would likely receive a share of the funding- provided the national governments would confirm support of the project with the rest of the 50%.
The top 3 projects were:

  • Don Valley Power Project- A pre-combustion project in the UK
  • Belchatow- A post-combustion project in Poland- Cancelled in April 2013
  • Green Hydrogen- Industrial application of CCS in the Netherlands- Cancelled in 2012

In December 2012, the EC published its award decision that there were no projects, which satisfied the criteria to receive the NER300 funding. The €275 million earmarked for CCS projects in the first round, will be rolled-over to fund projects in the second phase of the program.

NER300 opened the second round for proposals on April 3, 2013. At the close in July 2013, only one CCS project had submitted an application for the funding, the White Rose Project. The White Rose Project was awarded up to €300 million from the NER300 Programme on July 2014.


The EU Energy Program for Recovery (EEPR) is a €1 billion fund which has been set aside for CCS demonstration projects in Poland, Germany, the Netherlands, Spain, Italy and the UK. The program was launched in May 2009 and the European Commission awarded its decision on funding for 6 projects in December 2009.

  • Janschwalde, Germany. A 300 MW Oxy-fuel and post combustion operated by Vattenfall was cancelled due to uncertain legislation. The remaining award money has been returned to the EEPR after the project was cancelled.

  • Porto-Tolle, Italy. A 250 MW post-combustion project operated by ENEL had been delayed due to permitting. Cancelled

  • ROAD, Netherlands. The 250MW post-combustion slipstream from a new 1GW power plant. This project has received Governmental support.

  • Belchatow, Poland. A 260MW post-combustion project. Cancelled in April 2013.

  • Compostilla, Spain. An Oxy fuel 323MW onshore project. Cancelled in 2013

  • Don Valley, UK. A Pre Combustion 900 MW onshore project with EOR.


The Seventh Framework Programme or (FP7), with a total budget of over €50 billion for the period 2007-2013, is the EU instrument specifically targeted at supporting research and development. It provides funding to cofinance research, technological development and demonstration projects based on competitive calls and independent peer review of project proposals. Support is available for collaborative and individual research projects as well as for the development of research skills and capacity. CCS research has obtained funding from the FP7 program.
Links for more information:

  • NER300

European Commission web page on NER300 an independent web page dedicated to NER300 description

  • EEPR

European Commission for the EEPR
European Commission for EEPR projects
Presentation on the EEPR (June 2009)

  • FP7

European Commission's CORDIS FP7 home page
News item: largest number of calls for next round of FP7 (August 2012)
FP7 web-based tool monitoring system

National Government Funding Schemes


The UK had a £1 billion Carbon Capture Scheme Competition that was re-launched in April 2012. Unfortunately in November 2015 this funding was cancelled without warning by the UK Government six months before the winner of this competion was to be announced. Two projects had been left in the running for a share of the £1 billion:

  • Peterhead- A 385MW post-combustion retrofit to an existing 1180MW combined gas turbine power plant in Peterhead, Scotland. An estimated 1MT/Yr captured and stored in offshore depleted Oil and Gas Reservoirs. Shell and SSE

  • White Rose Project- A new 340 MW oxy fuel combustion power plant in Yorkshire, England. An estimated 2 MT/Yr stored in offshore deep saline formations. Drax Consortium

The Future of CCS in the UK remains extreemly uncertain after the cancellation of the Carbon Capture Competition. To date there has been no explanation other than the money was no longer available. There has also been no announcements of any other CCS fincancing scheme by the UK Governement. Both Peterhead and the White Rose projects have said that continuting with the CCS project is going to be very difficult without the money from the competition but they have not cancelled the projects yet.

Previous history of the UK CCS Competition:

Longannet, operated by ScottishPower, had been the only candidate left in the previous CCS competition. However in October 2011, the Longannet project was cancelled primarily because ScottishPower required an additional £500 million to cover increasing project costs that the UK Government did not provide.

The CCS competition was then re-opened in April 2012 and by July 2012 had received a number of project applicants. In November 2012 four projects were short listed to receive the £1billion. On January 14 2013 the four finalist’s submitted revised proposals.

The four finalists were:

Peterhead, White Rose Project, Captain Clean Energy Project and Teesside Low Carbon Project.

On March 20, 2013 Peterhead and White Rose projects were announced as the preferred projects and they would receive a share of the £1billion award. The other two projects will be placed on the reserve list in case either of the preferred projects should fall through. Projects are expected to be operation between 2016 and 2020.

More information on the UK funding from DECC