Scotland can move quickly to capitalise on its huge green energy potential following the publication of the EU's Economic Recovery Plan, Energy Minister Jim Mather said.

Scottish projects will be able to bid for up to £342.5m of European money for renewable energy and carbon capture projects.

Speaking at a Holyrood Energy Scotland Conference on innovation yesterday, the minister said: "This package presents new opportunities to stimulate investment in offshore wind, carbon capture and offshore grid infrastructure and comes as a result of the strong partnership we have forged with the EU.

"In these challenging economic times we need to play to our strengths and take advantage of the opportunities to develop the low carbon economy of the future. Renewable energy and carbon capture go hand-in-hand in achieving this aim."

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The minister spoke of the importance of the UK Government putting in place the right conditions for investment in renewables and clean coal in its budget on Wednesday, including releasing money already committed under the Fossil Fuel levy to renewables in Scotland.

"As a Government we will continue to work closely with the European Commission, UK Government, and Scottish based projects to ensure that Scotland fully benefits from this significant funding allocation."

The EU's agreed recovery plan includes £3.47bn earmarked for investment in carbon capture and storage (£0.9bn), offshore wind and grid projects (£502.5m) plus gas and electricity interconnection projects (£2.04bn).

The Recovery Plan lists an agreed number of energy projects that can then bid to access the money. The energy projects in Scotland on this list include:

• Carbon capture and storage: Total envisaged for UK is £160m. The list of four UK projects includes Longannet.
• Offshore Wind: £35.5 million for a possible European testing centre for offshore wind development in Aberdeen area, supported by the European Wind Energy Association
• North Sea offshore wind integration project: £147 million for development of offshore grid projects

(GK/KMcA)