E.ON is one of the last three remaining companies left bidding to set up a carbon capture and storage (CCS) demonstration plant in the UK, following BP's withdrawal.
From nine original contenders to trial and develop the technology, just four were pre-qualified by the Department for Business, Enterprise and Regulatory Reform.
According to the department, CCS could capture up to 90 per cent of carbon dioxide emissions from coal fired power stations and as such is considered a 'high potential' carbon abatement technology.
Department for Energy and Climate Change secretary Ed Milliband recently announced that the UK would aim to cut its carbon emissions by 80 per cent by 2050.
CCS technology could be central to achieving these aims while maintaining sufficient energy generation.
Meanwhile, the European Technology Platform for Zero Emission Fossil Fuel Power Plants has just announced a £9 billion plan to set up 12 demonstration plants to test CCS on a commercial scale.
