Oil and gas service firm Petrofac has teamed up with energy network operator National Grid and a US energy company to put forward plans for a Scottish coal-fired power plant with carbon-capture and storage (CCS).
The consortium plans to apply for funding from a £1billion UK pot for CCS projects launched by the UK Government to build the plant at Grangemouth.
US firm Summit Power, the third member of the consortium, said the carbon dioxide captured at the site would be sent to the St Fergus gas terminal near Peterhead by National Grid via a pipeline.
Petrofac would then pump the gas into reservoirs in the North Sea.
Summit Power said the development, named the Caledonia Clean Energy Project, would provide enhanced oil-recovery opportunities and would use existing pipelines.
National Grid said it was too early to say if the project would lead to jobs or investment at St Fergus.
Petrofac’s part in the development comes after it agreed a partnership with utility SSE and operator Shell to apply for a share of £4billion of EU funding for a proposed CCS facility at Peterhead Power Station.
It has been estimated previously that the project could create nearly 1,000 jobs and inject hundreds of millions of pounds into the north-east economy.
Under that bid, CO2 emissions from a 385-megawatt gas-powered turbine would be sent north through underground pipes to St Fergus. They would then be compressed and sent out to the Goldeneye platform offshore.
Petrofac could not say yesterday, however, if the Caledonia Clean Energy Project was now its only CCS development or if it was still in partnership with SSE and Shell.
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