The Department for Energy and Climate Change said in a press release that the money would be used to pursue other CCS projects.
“A billion pounds is enough to demonstrate this vital new technology in the UK, but it’s got to be spent in the most effective way," said energy secretary Chris Huhne in a statement. “Despite everyone working extremely hard, we’ve not been able to reach a satisfactory deal for a project at Longannet at this time, so we’ve taken the decision to pursue alternative projects.”
DECC says the government’s long-term strategy for CCS, along with an industry action plan, will be published when the new selection process for the funding is announced. Mininsters will discuss the plan, and the lessons learned from the failed negotiations over Longannet, at the Carbon Capture and Storage Development Forum on 2 November.