THERE was some good news for the low-carbon economy as the Government announced it will take forward two schemes to develop technology that captures and stores carbon emissions from power plants to the next stage of a £1 billion funding competition.

The gas-fired power station project at Peterhead in Aberdeenshire and a coal-fired plant scheme at Drax in Yorkshire could support thousands of jobs, Energy Secretary Ed Davey said.

The power plant at Drax would burn coal, with the ability to use biomass alongside it, with 90% of the emissions captured and stored beneath the North Sea seabed. The project at Peterhead aims to capture around 90% of the scheme's emissions, with the carbon dioxide stored in a depleted gas reservoir 60 miles off the coast of Scotland.

Ed Daniels, chairman of Shell UK, which is involved in the Peterhead project, said: "What we learn from the project will help the industry to be able to scale-up the technology to make a material impact on tackling climate change, and to create a world-leading industry here in the UK."

Dr Sam Gardner, of WWF Scotland, said: "Demonstrating carbon capture on this existing gas power station would enable us to test the technology and cut emissions from our energy sector whilst we transition to a renewable future."