The money is being invested by the Energy Technologies Institute (ETI) to fund a 5MW carbon capture demonstration plant capable of capturing up to 95 per cent of carbon dioxide emissions.
The technology will be designed for new-build combined cycle gas turbine (CCGT) power stations or to retrofit to CCGT plants, and it is hoped that the demonstration project will be designed, built and tested by 2016.
The first phase of the project will see the ETI invest £1.6 million in a small scale demonstrator prototype, laboratory work and techno-economic assessment to confirm the projected benefits. This will then be followed by a conceptual design for the larger-scale demonstrator plant.
An initial assessment by the ETI suggests that the technology could reduce the typical cost of electricity by 13 per cent when compared to current CCS technology.
The consortium developing the CSS systems include Howden Global and Doosan Power Systems CCS Centre of Excellence, both based in Renfrew in Scotland; MAST Carbon, based in Basingstoke; and Canadian firm Inventys.