Longannet power station,  recently began a pioneering carbon capture and storage (CCS) system, had been in the running to receive a share of €1vn from the European Commission to develop the fledgling technology.

But there is still £1bn funding from the Department for Energy and Climate Change put up for competition  to demonstrate CCS, with the winner set to develop the technology on a commercial scale.

ScottishPower, which owns Longannet, entered the competition and in May began a groundbreaking trial of the technology, the first time it has been used at an operational coal-powered station.

Believed to be capable of capturing 90%  of the station's emissions, turning it into liquid, before piping it into disused North Sea oil fields or porous rock beneath the seabed the technology also won the approval of  Edinburgh University academics (sponsored by the Scottish Government) who report  CCS as potential blueprint for an industry that may outstrip oil & gas in the future economy and bring an estimated 10,000 jobs.

The report also noted potential capacity to store up to 46,000m tonnes of emissions in rocks beneath the Scottish waters of the North Sea.

Liberal Democrat MP (left)  for Dunfermline & West Fife Willie Rennie, said he was not despondent and  believed Longannet could still benefit from the second tranche of EU funds to be released next year.