The north-east is on the brink of winning up to £1billion to create hundreds of jobs and help the region lead the world in a key green technology.
A project to develop a pioneering carbon capture and storage plant at gas-fired Peterhead Power Station has been named as one of the UK Government’s two preferred funding bids. The scheme, which could create nearly 1,000 jobs, is led by energy giants Shell and SSE, and would become the world’s first commercial gas CCS facility.
It aims to prove the technology can help tackle climate change by capturing 10million tonnes of CO from the power station over a decade – 90% of its total emissions – before storing it in a depleted North Sea gas reservoir.
There were celebrations in the region last night after the UK Government’s decision, announced in the Budget. However, it was also revealed that a final decision on whether the Peterhead scheme is taken forward, or another in Yorkshire, or both, has been delayed until 2015.
Energy Secretary Ed Davey said: “Today’s announcement moves us a significant step closer to a carbon capture and storage industry – an industry which will help reduce carbon emissions and create thousands of jobs.”
In October, it was announced that the Peterhead scheme had made it on to a four-strong shortlist to win the money, with two now ruled out. The government said it would talk to the two bidders and make a decision in early 2015 on the “construction of up to two projects”. Ed Daniels, chairman of Shell UK, said: “What we learn from the Peterhead project will help the industry to be able to scale up the technology to make a material impact on tackling climate change, and to create a world-leading industry here in the UK.”
Aberdeenshire Council leader Jim Gifford described the decision as “fantastic news”. He added: “This development will be a key milestone in the Energetica project and will help draw worldwide attention to the fact we can deliver major, innovative projects in Aberdeenshire.”
A previous BP-led CCS initiative at Peterhead was abandoned in 2007.
Stewart Stevenson, SNP MSP for Banffshire and Buchan Coast, said: “Thanks to the North Sea, Scotland has the biggest capacity for CO storage in Europe and that is something we should be making the most of.” Alison McInnes, Liberal Democrat MSP for the north-east, said: “The team at Peterhead, and the local community will be delighted to have reached this milestone.” Tom Smith, chairman of Aberdeen City and Shire Economic Future, said: “This is a welcome announcement for a project that would help cement Aberdeen city and shire’s position as a global energy hub.”
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