North East Liberal Democrat MPs today welcomed the news that Scottish and Southern Energy and Shell had entered into a joint development agreement to develop a carbon capture and storage project on their at the Peterhead plant in Aberdeenshire. The news comes soon after the decision not to progress the CCS project at Longannet in Fife. They called on the UK Government to get behind the project.
The Peterhead project is dependent on funding from both the EU and from the UK Government (details below). The project will build on pre-FEED studies already carried out by Shell at Longannet and SSE and Shell are confident that, funding permitting, the Peterhead project can be accelerated to begin a full FEED study in mid 2012.
Sir Robert Smith MP, member of the Select Committee on Energy and Climate Change and MP for West Aberdeenshire and Kincardine said:
“I have written to Chris Huhne, the Secretary of State for Energy and Climate Change, to highlight the advantages of the Peterhead project. The North East of Scotland is perfectly placed geographically for ease of transport of the CO2 to the North Sea fields and the region can also draw on the vast expertise and experience of the Aberdeenshire Oil and Gas industry. This is an opportunity for both Scotland and the UK to take a lead in this exciting and rapidly developing industry.”
“With gas likely to play an increasingly important role in the UK’s energy mix, it is essential that CCS is tested on gas-fired power stations.”
Malcolm Bruce, MP for Gordon who is vice chair of the Parliamentary Renewable and Sustainable Energy Group, PRASEG added:
“The consortium’s announcement today is clearly welcome both for Aberdeenshire and Scotland. CCS is an extremely cost effective way to reduce emissions and presents a huge opportunity for UK technological leadership, bringing prosperity, growth and jobs in the low carbon economy. However, we must learn the lessons from Longannet and I urge both Governments to work together to ensure that a streamlined funding and construction process is put in place to deliver the commitment to the project as smoothly and swiftly as possible.”
NOTES:
The agreement will enable the project to accelerate a programme of pre-FEED (Front-End Engineering Design) studies, with the intention that the project will be in a position to begin a full FEED study in the second half of 2012, subject to progress with funding proposals submitted under the EU’s NER300 process and developments in the UK’s CCS demonstration programme.
The project aims to design and develop a full chain, post-combustion CCS facility which will be capable of capturing CO2 from one 385 MW combined cycle gas turbine unit at SSE’s Peterhead Power Station. It is planned that the CO2 will then be transported to the Shell operated Goldeneye gas field in the North Sea using, as far as possible, existing infrastructure
SSE will lead on all aspects of the capture plant at Peterhead, including initial compression and dehydration; with Shell examining all other aspects, including onshore and offshore transportation and storage.
In May 2011, the UK government announced that the Peterhead project was one of seven UK CCS applications to the European Investment Bank for consideration in the EU’s NER (New Entrant Reserve) scheme to support CCS and renewable energy projects across the EU. Up to three such projects may be supported per Member State. A decision has recently been taken not to proceed with the CCS project proposed for the coal-fired power station at Longannet in Fife, which had been one of the seven UK CCS applications.