EU may spend 10 billion euros to DECREASE the average efficiency of power plants by up to 20%

EurActiv.com - EU nears agreement on funding CO2 capture | EU - European Information on Climate Change

The European Parliament is getting closer to secure funding for emerging technology to capture and store the carbon dioxide emissions of heavy-polluting coal-fired power plants, in an agreement that could bolster the EU's leadership in the fight against global warming.
Background:

Carbon capture and storage (CCS) is a process involving the separation of carbon dioxide from the gases produced by large stationary power plants. The CO2 is then compressed, transported and stored in geological formations, either on land or in the ocean (see EurActiv LinksDossier).

The Commission backs CCS as an essential part of its CO2 reduction efforts, and put forward a Communication on a legal framework for storing CO2 as part of its climate and energy package of 23 January (EurActiv 28/01/08). In March 2007, EU member states also pledged to have 10-12 CCS demonstration plants up and running by 2015.

But the technology is expensive and decreases the average efficiency of power plants by up to 20%. Neither member states, the Commission nor the private sector have thus far pledged any significant funding to drive the development of the demonstration plants.

Chris Davies, the British MEP steering the file through Parliament, is proposing to use 10 billion euro of allowances, earmarked under the EU's CO2 emissions trading scheme, to finance large-scale demonstration projects.