Gas specialist will supply equipment for £4.5bn Don Valley power project in Yorkshire, following CCS partnership with Drax
Industrial gas specialist BOC has increased its interests in the UK carbon capture and storage (CCS) sector by taking a 15 per cent stake in the proposed £4.5bn Don Valley Power Project in South Yorkshire.
Under the terms of the agreement, BOC and its parent company The Linde Group will supply the carbon capture technology and air separation units (ASUs) for the CCS plant, which will be built by developer 2Co at Stainforth in the Humber Gateway. However, both firms refused to drawn on the financial details of the partnership.
The deal comes after BOC teamed up with Drax and Alstom to help develop their planned 426MW oxy-fired CCS plant at Drax’s site in Selby, North Yorkshire, at the beginning of the year.
It is the second significant investment 2Co has secured this year for the proposed 650MW project, after Samsung took a 15 per cent equity stake in March.
In the past, 2Co chief executive Lewis Gillies has said he envisaged the Don Valley project progressing with supoprt from a number of partners, but the company was unable to disclose whether it was in discussions with any other companies.
In a statement issued today, he said the addition of BOC and Linde added “world-class engineering and operations expertise” to the project, which last month was listed as the tenth most advanced CCS project in the world, and second in Europe, by analysts Bloomberg New Energy Finance.
2Co is one of 16 companies aiming to win funding from the government’s relaunched £1bn CCS commercialisation competition and, having already been awarded €180m under the European Energy Programme for Recovery, is also in the running for money from an EU funding pot known as NER300.