INTERVIEW-China aims for first zero emission power by 2015

The main alternative at present is stripping carbon dioxide from waste gases after combustion -- the model Britain is focused on, which could reach markets sooner and is expected to be cheaper than the IGCC model.

The power will be sold straight into the grid, but Beijing is still debating how much Huaneng should get for it, Su said, adding that he expects some kind of subsidy.

"We haven't yet got the final permit, because once they do that they will have to set the power price, and they are still researching it," Su said, adding that he is ready to start building the first phase as soon as they get the go-ahead.

The plant will be built in the coastal city of Tianjin.

In 2010 phase two will begin, with construction of a small, 20 megawatt CCS plant -- similar to several under construction around the world -- that will use a small portion of the synthetic gas and allow Huaneng to iron out technical problems.

That should be running smoothly by the end of 2012 and in 2013 work will start on the commercial scale demonstration plant.

It is located near an oilfield, so some carbon dioxide will be used to enhance recovery of crude, while emptied gas and oil deposits could also be suitable places to bury the gas.

Another tiny carbon capture project in Beijing, also run by Huaneng, but not connected to GreenGen has an even more novel use for the gas it siphons out of power plant emissions.

The 3,000 tonnes extracted each year, starting this July, will be used to carbonate fizzy drinks, the company said.

Huaneng Group is the parent of listed Huaneng Power International Inc (0902.HK)(600011.SS)(HNP.N). (Reporting by Emma Graham-Harrison; editing by James Jukwey)