The project will also be partly financed with 180 million euros from the European Energy Programme for Recovery (EEPR) and an extra €280-450 million in the form of EU Emission Allowances. Within the first 20 years of operation, it is expected that the power plant will prevent emitting to the atmosphere 18 million tonnes of CO2 which will be stored in a deep and safe underground geological formation.
The CCS demonstration project will be a 500 MW circulating fluidized-bed (CFB) oxy-fuel coal-fired power plant. The Ministry of Industry, Tourism and Commerce, through CIUDEN, and Endesa have agreed to establish a joint venture that will assume the tasks of design, construction and exploitation of the power plant, which will be located next to the existing coal-fired power plant of Compostilla, property of the utility.
This public-private collaboration will clearly help CCS reach commercial maturity with institutional backing, as it is the case in other European countries. In the OXICFB300 project, the private participation will be close to 70 percent and CIUDEN will contribute with the remaining 30 percent of equity, estimated to be more than €200 million. Endesa and CIUDEN will give the opportunity for new partners to join, adding extra value to the project.
The OXICFB300 is one of relatively few proposed CCS demonstration projects testing oxyfuel technology, which has attracted attention from countries like China and Saudi Arabia.
With this step, the Spanish Government confirms its commitment to CCS development. This commitment has already started in 2006 with the creation of CIUDEN, established by the Ministries of Industry, Environment and Science & Innovation. CIUDEN is now constructing in a nearby area of the Compostilla plant an oxyfuel CCS pilot plant. This pilot plant will provide essential support to the OXICBF300 project.
This article was written by Oier Aristizabal, a Bellona CCS correspondent in Spain.