A pioneering £1bn state-funded carbon capture and storage (CCS) project at the Longannet power station in Fife has been cancelled, as the government announced that "a decision has been made not to proceed with Longannet but to pursue other projects with the £1bn funding made available by the government."
Earlier this month, the Guardian revealed that Longannet, the only remaining project in the government's competition for CCS funding was on the brink of collapse because Scottish Power and its partners, Shell and the National Grid, were concerned about its commercial viability without more public backing.
David Cameron cast doubt on the future on the project during prime minister's questions, when he said the scheme "isn't working". Tom Greatrex asked : "Given the importance of CCS both as a way of reducing emissions and as an exportable technology, can the PM confirm the Longannet scheme is going ahead?"
Cameron replied: "What I can say is that the funding we set aside for carbon capture and storage is still there, is still available. Clearly the Longannet scheme isn't working in the way they intended. But the money from the government, the support from the government for this vital technology is there."
http://www.guardian.co.uk/environment/2011/oct/19/david-cameron-longannet-carbon-capture