The UK government is standing by its offer to put GBP1 billion ($1.56 billion) into a carbon capture and storage project to prove the technology and its commercial viability, newly appointed UK energy secretary Ed Davey has told industry participants, a spokesman for his ministry said Thursday.

After protracted negotiations with the ministry during which the developers tried to bid up the proposed GBP1 billion from the government, plans for the country's first CCS project at Longannet in Scotland collapsed last October.

"The UK has the chance to lead the world in CCS and the government is backing its commitment with GBP1 billion," Davey said in his first meeting with CCS industry participants as Department of Energy and Climate Change secretary, the DECC spokesman quoted him as saying. >>more

Source: London (Platts)--23Feb2012/720 am EST/1220 GMT