The Carbon Capture and Storage (CCS) is technology aims to will dramatically reduce carbon emissions from power plant to meet the shared challenge of climate change while maintaining security of energy supplies.
UK State Energy Minister Matthew Hancock said: "Carbon Capture and Storage could help us tackle climate change.
"I welcome the fact that the UK and Canada will be working together to advance the technology. Our agreement is an important step forward for the carbon capture and storage sector, and I look forward to further UK-Canada cooperation."
Expected to be one of the most cost effective technologies for decarbonisation of the UK’s power, the CCS will allow the country to keep fossil fuels (coal and gas) in the its electricity mix.
Additionally, the technology, if developed at scale, will allow the safe removal and storage of CO2 emission from coal and gas power stations.
Currently, the UK is developing two commercial scale carbon capture and storage projects including Peterhead in Scotland and White Rose in Yorkshire.