The project, led by Shell, with strategic support from SSE,
owners of the Peterhead gas power station in Aberdeenshire,
aims to capture 10 million tons of carbon
dioxide (CO2 ) over 10
years. It will generate enough clean electricity to power the
equivalent of 500,000 homes a year. If successful, the project
will represent the first
industrial-scale application of CCS technology
at a gas power station.
The signing of this agreement is a hugely important
step towards the UK delivering the worlds first CCS
demonstration facility on a gas-fired power station. The project
has the potential to make
gas, already the cleanest burning fossil fuel, even
cleaner, said Ed Daniels, chairman of Shell UK.
CCS could be critical to reducing carbon emissions
at a time of growing
global demand for energy. The successful demonstration of the
at Peterhead would be a
step to proving its commercial viability as a tool for
mitigating climate change. It could also help diversify the
North Sea oil and gas industry and so contribute to the
sectors long-term commercial health.
SSE is proud to be working with Shell on proposals to
install this cutting-edge technology
at our Peterhead
plant, said Paul Smith, managing director, generation,
SSE. CCS could play a major role in ensuring secure,
energy in the future, and
we are pleased to be playing our part in its development"
The proposed initiative at Peterhead is part of a portfolio
of major CCS projects supported by Shell. Others include the
Quest oil sands project in Alberta, Canada, and the Gorgon
project in Australia.
The agreement signed by Ed Davey, Secretary of State for
Energy and Climate Change, at Shells offices in
Aberdeen, marks the start of a period of front-end
engineering and design (FEED), which is expected to continue
Subject to positive final investment decisions by Shell and
the UK Government and the receipt of all relevant consents
and permits, the project
is expected to be
operating by the end of the decade.