The voice of British business has today expressed regret over the Government’s decision to call an end to the Carbon Capture and Storage plant at the Longannet power station in Fife.

Rhian Kelly, CBI Director for Business Environment, said: “This is disappointing news, but we hope an alternative Carbon Capture and Storage scheme at Peterhead goes ahead as soon as possible.

“Carbon Capture and Storage technology should play a key role in a balanced energy mix. This would help us achieve our ambitious emissions reductions targets, while making energy bills more affordable in the longer term.

Energy Secretary Chris Huhne announced this week that the project, comprised of National Grid, ScottishPower and Shell would be scrapped, but insisted this wasn’t the end for CCS in the UK.

Kelly said affirming future CCS projects was paramount to business investing in the UK’s low carbon economy: “It is crucial that the Government does all it can to provide the policy certainty that companies need to invest in energy infrastructure, and we must see a plan for action on CCS before the year is out.”