2Co Energy will rename the project as Don Valley power project which is expected to generate about 900MW of low-carbon power from 2015-2016.
The CCS will capture and store up to 5 million tonnes per annum of CO2 securely and permanently deep under the seabed of the North Sea.
The firm will also secure a financial guarantee which will enable it to draw the EUR180m ($255.5m) grant from the European Commision to make a pre-financing payment of EUR45m ($63.8m).
Built in partnership with the UK National Grid, the project received the EU grant in 2009.
