National Grid, ScottishPower and Shell are behind the proposals for the 260km long pipeline, which will be capable of transferring up to two million tonnes of CO2 a year.
The group intends to construct a new length of pipe from Longennet to Falkirk, where it will then connect to an existing line to Shell’s Goldeneye platform in the North Sea.
“Work will begin on the new pipeline in 2014, with the overall aim to deliver a full chain post-combustion CCS (carbon capture and storage) scheme in 2015,” a spokesperson for National Grid said, adding the existing pipeline will need a change of use to CO2 transportation.
The plans were welcomed by WWF Scotland, which said the UK government must ensure the project receives a £1 billion subsidy from Westminster.
“Using CCS at existing power stations is an important bridging technology in reducing climate change emissions,” Dr Sam Gardner from the organisation said.
The UK government believes the CCS industry also has the potential to bring in several billions of pounds worth of export opportunities by 2030.