The 1940 MW plant, commissioned in 1970, will have reached the end of its allocated running hours under the EU's Large Combustion Plant Directive.
E.ON had applied for development consent for two new coal units which would be fitted with CCS technology, but is now to withdraw these plans.
Kingsnorth was one of two schemes shortlisted as part of the UK government's competition to build the UK's first commercial CCS scheme.
But E.ON believes the market is still not conducive to building the 1600 MW supercritical power station.
However, E.ON UK chief executive Tony Cocker, said: “Our announcement does not rule out future power generation on the site, which remains an excellent location for a new plant given its proximity to demand in the south-east, but the original plans are no longer appropriate.”
He added: “As a group we believe CCS can become an important step in the transition to a low-carbon generation mix with the right regulatory, technological and economic support. We're promoting CCS research & development across Europe by partnering with universities and by testing carbon-capture equipment at several of our power stations across Europe. Lessons from our projects will be shared with the UK and the entire E.ON Group.”
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