The Energy Technologies Institute (ETI) has announced a carbon capture and storage (CCS) plant capable of capturing 95 percent of CO2 emissions will be operational by the end of 2015.
The ETI, a leading U.K energy technology development organisation, is to invest £23.5 million in CCS technology in two stages, and will partner with the University of Edinburgh and Imperial College London to carry out the front end engineering design work.
Once this has been completed, the remaining £20 million will be used during the second stage to build and demonstrate the CCS plant and analyse the results.
A potential site for the plant has already been identified and the project has been praised by energy minister Charles Hendry.
ETI chief executive Dr David Clarke said: "Current technologies significantly increase the costs of capturing CO2 and reduce the power output or increase fuel consumption.
"This project will develop technology which will reduce the costs and increase performance to allow a full-scale commercially viable facility to be ready for power export by 2020."
The U.K government has so far pledged to invest public funds in four CCS demonstration projects, and created a requirement the new coal-fired power stations can only be built with sufficient CCS facilities.