The UK Government will officially launch a £1billion competition to develop pioneering green energy technology today amid hopes the north-east could win a slice of the funding.
Energy giants Shell and SSE are believed to be poised to bid for money for a carbon capture and storage (CCS) centre at Peterhead.
Proposals for the town’s gas-fired power station have been considered a front-runner for government support since the collapse of a CCS project at Longannet in Fife. The plans involve taking CO emissions from a 385-megawatt gas-powered turbine and pumping them to the Goldeneye platform in the North Sea and into an existing gas reservoir.
Doubts were raised about the £1billion fund in November after UK ministers said they did not expect to spend the money before the 2015 general election.
Energy Secretary Ed Davey announced last month he was poised to launch the CCS competition and “road map”, claiming the package was among the best anywhere in the world.
Labour’s energy spokesman, Tom Greatrex, last night called on the government to offer clarity on the terms of the contest. “There is real potential in developing CCS – both as a means of reducing our carbon emissions, but also to create jobs and develop skills here in Scotland and across the UK,” he said.
“The Peterhead project is one with real potential to turn theory into practice. But without the government being honest about how much funding is available, and when this will be released, potential investors will be put off.
“What we need now from the government are detailed proposals.”
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