E.ON chief executive Paul Golby has warned the government that failing to develop carbon capture technology could prevent it from reaching its carbon emissions target.
Mr Golby said that the carbon capture industry has to be commercialised if the world is to meet growing demands for energy and still tackle climate change.
"For me it is clear there will be worldwide coal-fuelled growth in energy supply and that carbon capture is the most important technology in the fight against climate change," He claimed.
He added that while carbon capture was not the only technology being investigated by the firm, it was by far the most important.
E.ON is hoping to build a new coal-fired power station in Kingsnorth, Kent, but has come up against opposition from climate change campaigners.
The firm said it will install carbon capture technology at its Kingsnorth plant if British taxpayers pay for it.
Meanwhile, EDF and E.ON called on the government to reduce the amount of renewable energy projects it gives the green light to because of the impact green electricity generation may have on nuclear power.
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