Billion Pound Opportunity for Scotland’s Low Carbon Sector

Scotland's CCS and Renewable energy projects could benefit from a share of up to €5 billion across the EU

The European Commission announced today its first call under the New Entrants Reserve "NER300" - a joint financing instrument managed by the European Commission, European Investment Bank and Member States for subsidising installations of innovative renewables energy technology and Carbon Capture and Storage (CCS).

Said to be worth between €4-5 billion, the release of the NER call represents a significant milestone in the delivery of major European investment into innovative energy projects. At least 8 CCS and 34 innovative renewable energy projects will be co-funded across the EU as part of a competitive process from projects put forward by Member States. Under the terms of the competition, each member state could be awarded up to 3 projects supported through the NER process. If awarded, NER funding could provide support of up to 50% of the eligible costs of a project.

Chris Bronsdon, CEO of the Scottish European Green Energy Centre (SEGEC) comments: "this announcement has been eagerly anticipated by business and is vital in taking forward truly innovative projects that can make significant contributions to the generation of clean, emission free, and renewable energy in Scotland. New technologies often struggle to gain sufficient investment to overcome the transition from demonstration (research and development) to deployment and full scale commercial operations. In areas such as CCS or Marine energy the capital expenditure requirements can be considerable and often beyond the reach, or even the balance sheet, of the groups that have the knowledge and ability to deliver."

Energy Minister Jim Mather said "Today's announcement by the European Commission is of significant importance to Scotland - not only to the projects that stand to benefit directly should they be successful in attracting the funding, but to the wider low carbon economy agenda as we work towards a decarbonised energy sector and work to further develop our expertise and skills base in CCS and renewables.  Scotland has the potential to be the green energy capital of Europe and we have already made huge progress in transforming our key sectors as well as setting leading edge targets for reducing our emissions. Scotland must be at the forefront of the technological advances that will help all nations deliver a more sustainable and secure energy sector."

SEGEC is currently working in partnership with Scotland's development agencies and Scottish Government officials to support Scottish projects. Scottish Enterprise also recently launched the CCS Cluster Investment Plan in partnership with the Scottish Government.  In addition, SEGEC will be working with the Department for Energy and Climate Change at UK level to ensure opportunities are fully exploited alongside domestic initiatives to assist investment in the sector.

Whilst there are any number of potential projects that could be built from the ground up, the approach that SEGEC takes is somewhat different and focusses maximising success. Mr. Bronsdon added: "'whilst energy is a strong growth area, we have to demonstrably improve the chances of funding success for Scotland - a metric that is in our eyes the delivery of investment into energy infrastructure projects. Through close links with Europe and our partner organisations in Scotland, SEGEC will provide advice and support on the NER process, helping to identify the key funding criteria to be met and then facilitating the collaborative partnership to build a winning team and project".

The CCS and renewable energy priorities of the NER call are important to Scotland and Europe. The successful demonstration of CCS power generation across Europe will lead to major international new build power projects whilst delivery of significant investment in marine energy will bring Scotland and other countries in Europe a step nearer to realising a full commercial market for marine energy.


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For further information, please contact Eleanor Jones, Marketing & Communications Manager,
Scottish European Green Energy Centre
Switchboard: +44 (0) 1224 489 980
Direct: +44 (0) 1224 489 983
Email: ellie.jones@segec.org.uk   
Web: www.segec.org.uk 
 

Notes to Editors

About SEGEC
The Scottish European Green Energy Centre (SEGEC) provides a focal point for European organisations engaging in low carbon energy projects and activities. SEGEC supports engagement with institutions, networks and technology platforms, influencing the future policy agenda and identifying opportunities for collaboration across different industry sectors.

SEGEC facilitates partnerships, collaborative projects and funding packages designed to accelerate the development and deployment of low carbon energy technologies, and disseminates the results.

An independent, not-for-profit organisation, SEGEC is sponsored by the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise, ScottishPower and Scottish and Southern Energy, and is part funded by the European Regional Development Fund.

SEGEC's energy priorities include, but are not limited to: Marine Energy, Carbon Capture & Storage, Renewable Heat, SuperGrids and SmartGrids and Offshore Wind, and aims to facilitate high impact projects, which can make a real difference.

In the short time that SEGEC has been operational, it has successfully secured €115 of funding for two significant projects through the European Economic Recovery Package funding stream:

• €40 million was secured for the European Offshore Wind Deployment Centre, which will be located off Aberdeen and will have a project total of around €200 million.
• €75 million was secured for an offshore grid node, which will link Shetland to the mainland and allow offshore renewables to link into the national grid more easily. This leveraged another €75 million of private investment.


About the New Entrants Reserve
For further information please visit:
http://ec.europa.eu/clima/funding/ner300/index_en.htm
The closing date for project sponsors to submit application forms to their Member States is 9 February 2011.

About the CCS Cluster Investment Plan
For further information please visit:
http://www.scottish-enterprise.presscentre.com/content/detail.aspx?ReleaseID=700&NewsAreaId=2