A pioneering clean-energy project in Peterhead is “developing very well” and investment decisions will be taken this year, according to the UK energy secretary.
Ed Davey defended the rate of progress at Britain’s two leading carbon capture and storage (CCS) in Aberdeen and Yorkshire.
Shell plans for to fit CCS technology to Peterhead Power Station, enabling harmful emissions to be caught before the enter the atmosphere, and stored in the North Sea.
It is the first gas-based CCS scheme of its kind in the world, and is in the running for a £1billion UK Government fund, alongside a coal-based project in Yorkshire.
The development of CCS in the UK has been hit by a series of delays, but Mr Davey insisted progress was being made.
Giving evidence to Westminster’s energy and climate change committee, he said: “It’s taken a bit longer, I accept. I would have liked to have gone quicker. But we have to consider value for money for consumers. We have to make sure we get it right.
“I think we’ve made really solid progress. We have two projects which are currently at front-end engineering design, where we have the funds for them if they go to the next stage already in the budget.
“The two projects in Scotland and Yorkshire are developing very well. They are not yet at the stage that they need that extra money. We will be negotiating with the two consortia this year about the future of their projects and ultimately about the terms, the strike price for a Contract for Difference for them, in addition to capital support from the £1billion.
“We stand ready to support the roll-out of CCS and I think our record is a pretty good one.”
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