Britain will fund at least two and up to four carbon capture and storage demonstration plants, from previous plans to support just one, finance minister Alistair Darling said on Wednesday.
Green technology will be one of the great growth sectors of the world economy over the next few years, Darling told parliament in his annual budget address.
Coal, oil and gas will continue to be a major source of energy for the foreseeable future. Clean technologies such as carbon capture and storage are vital to ensure we can produce power from these sources without damaging the environment.
A new funding mechanism will be used to finance at least two and up to four demonstration projects.
(Reporting by Gerard Wynn, Editing by Sue Thomas)