Dr Paul Golby, E.ON's UK chief executive, has called for the government to identify incentives for companies developing carbon capture and storage (CCS).
Providing such incentives are put in place, the company has committed to fit the pioneering technology to its proposed coal units at Kingsnorth power station.
The company also announced that it has started work to identify potential CO2 pipeline routes in Kent. The survey work aims to find the best locations for the pipelines that could eventually be used to carry captured CO2 from the proposed cleaner coal units at Kingsnorth to North Sea gas fields for storage.
'We remain committed to the government's CCS demonstration competition, which is a great start, but what we desperately need now is action. Progress to date has been too slow and I very much hope to see signs of movement soon, which is why we've decided to push forward with developing options for our own project,' said Golby.
The investigation will study potential pipeline routes along the Grain peninsula, as well as offshore.
Once suitable routes have been identified and sufficiently developed, consultation with relevant landowners, statutory organisations (including Medway Council and the Environment Agency) and the public will start as part of the normal planning process.
The company is also considering the option of transporting the CO2 by ship as an alternative to a pipeline.
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