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UK firms win government low carbon investment

Companies developing cutting edge low carbon energy projects in generation, efficiency and storage – such as capturing carbon emissions or turning buildings into power stations – have the chance to bid for an extra £5 million of funding in the fourth round of the government’s Energy Entrepreneurs’ Fund (EEF).

Today also sees 19 projects being awarded a share of the £9 million available through the third phase of the Fund. They include renewable generation technologies, efficient engines and vehicles, energy management and storage solutions.

The extra funding announced today comes on top of £35 million already awarded to innovation projects through the previous three phases of the EEF, which helps small and medium sized businesses, including start-ups, bring a range of new and innovative low carbon products to market.

Half of the new money in the latest round will be prioritised for Carbon Capture and Storage, the process of capturing millions of tonnes of CO2 from power stations and industrial facilities, and storing the CO2 offshore, deep under the sea bed. The UK is leading Europe with two commercial-scale projects under development. Without CCS, decarbonising the energy system will be up to £40 billion more expensive per year.

Climate change minister Amber Rudd said: “As the nation that is leading the way in tackling climate change, it is important that we support small and medium sized businesses get their innovative energy projects off the ground.

“We will see the benefits in terms of increased energy security and affordable, low carbon electricity – Carbon Capture and Storage for example could be one of the most cost effective ways to decarbonise our future energy system.”