The European Parliament voted last week formally to endorse the EU Economic Recovery Plan which aims to combat the economic downturn through the injection of €5 billion into the European economy. €3.98 billion has been earmarked for investment in energy projects, spread between carbon capture and storage (CCS), offshore wind energy and gas and electricity interconnection projects. This money will be invested over two years, with €2 billion being invested in 2009 and a further €1.98 billion in 2010. In addition to the funding for energy projects, the Recovery Plan provides for the investment of €1.02 billion into broadband internet connections and rural development across Europe.
Investment in Scotland
Scotland's green energy industry stands to reap the benefits of the Recovery Plan. £40 million has been allocated to the Aberdeen Offshore Windfarm, a joint venture between Aberdeen Renewable Energy Group (AREG) and Swedish utility company, Vattenfall, comprising 23 turbines. A further £165 million has been allocated for investment in the North Sea
Energy Grid
The European Parliament has also set aside £180 million for investment in CCS in the UK. It has identified four CCS projects in the UK that may benefit from the funding. These include Longannet in Fife, which is reported to be one of the leading contenders for money.
Any projects wishing to be eligible for funding will have to be ready for investment and incurring substantial capital expenditure by the end of 2010.
Carbon capture and storage
The announcement of investment in CCS projects comes within days of the publication of "Opportunities for CO2 Storage Around Scotland", a comprehensive study, funded by the Scottish Government, into Scotland's potential for CCS. This report shows that Scotland has the capacity to capture and safely store emissions from industrial coal-fired plants for the next 200 years. This capacity is comparable with Norway and is greater than the capacity of the Netherlands, Denmark and Germany combined. Indeed, the report states the belief that CCS may outstrip oil and gas in terms of importance to the future economy in Scotland.
In light of these findings, the European Parliament's announcement is a timeous one and the EU Economic Recovery Plan could assist Scotland in realising this industry's great potential.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 11/05/2009.
