The government launched its competition to fund a commercial CCS project on Tuesday, reported the Wall Street Journal.

The previous competition was launched in 2007 but failed after bidders pulled out.

The UK’s attempt to benefit from a potential 6.5 million pound industry follows the rest of Europe’s lead to meet climate change targets and create new jobs for low-carbon industries.

UK Energy and Climate Change Secretary Ed Davey told the WSJ that the UK’s offer was “one of the best anywhere in the world”

“What we are looking to achieve, in partnership with industry, is a new world-leading CCS industry, rather than just simply projects in isolation,” Davey was quoted as saying.

Companies reportedly bidding in the competition include the UK's Drax, National Grid and France's Alstom SA.

Confederation of British Industry business environment policy director Rhian Kelly said the government must adapt to ensure the CCS project did not collapse again.

“This time around the competition must be simpler and completed as quickly as possible,” Kelly said.

The WSJ reported that as well as including CCS fitted to gas-fired power stations, the relaunched competition included other technologies, such as pre-combustion.

To qualify, projects must be operational by 2016 to 2020 or earlier, with bids submitted by July 3.

A final decision on which projects make the cut will be made towards the latter months of 2012.