The 250MW equivalent CO2 capture plant is expected to capture annually 1,1 million tons of CO2, emitted by the E.ON’s coal fired Maasvlakte Power Plant 3. The latter also receives €180mn from the European Energy Program for Recovery and is part of the European CCS Demonstration Project Network which will foster knowledge sharing of CCS demonstration projects.

The Commission considered the grant as an incentive to undertake CCS, rather than an infringement to the EU state aid and competition rules. Large scale deployment of CCS will not happen without state aid. Norway and the UK have previously been allowed to subsidize the construction of CCS demonstration plants.

“The Dutch CCS project will contribute to reaching the EU 2020 environmental objectives without unduly distorting competition,” said Joaquín Almunia, the commissioner in charge of state aid and competition policy.

Nonetheless, GDF Suez and E.On are required to effectively disseminate information about the results and progress of the project, as a way to minimize the possible distortion of competition. Knowledge-sharing is indeed crucial to help to overcome the barriers to CCS deployment.

Find out the European Commission press release here.