An energy firm is in “exclusive negotiations” to sell its carbon capture and storage (CCS) project to a privately owned Norwegian-based company Sargas.

2Co Energy Limited proposed the Don Valley Power Project (DVPP) in South Yorkshire, which the firm said is at an advanced stage of development, with around £60 million already spent on the plant.

It has also secured €180 million (£143m) in funding from the European Commission and been granted planning permission as well as a national grid connection agreement.

The project had however been excluded from the shortlist for funding under the government’s £1 billion CCS demonstration programme, which meant it couldn’t receive further EU funding under the European Commission’s NER300 programme.

Trevor Nash, Chief Executive at Sargas said it has CCS technology “ready to be deployed at an industrial scale that is more efficient and costs less”.

He added: “We have looked at potential CCS projects globally and have been attracted to the UK by the advanced stage of thinking on the policy support for renewable and low carbon energy.”

The sale is expected to be completed over the summer.

Yesterday, the White Rose CCS project, located next to the existing Drax power station in North Yorkshire, was one of the projects that was awarded €300 million (£238m) under the NER300 programme.