Support From Brussels For Peterhead Carbon Capture Project

09 February 2011

SNP MEP Alyn Smith has warmly welcomed the EU funding application by Scottish and Southern Energy (SSE) to develop a Carbon Capture and Storage (CCS) project in Peterhead.

The proposed project will design and develop a full chain, post-combustion CCS facility which will be capable of capturing the CO2 from one 385 MW combined cycle gas turbine unit at Peterhead Power Station. Current plans are that the CO2 will then be transported via an existing underground pipeline to St Fergus for further compression and then transported via an undersea pipeline to an existing gas reservoir in the North Sea operated by Shell U.K. Limited that will have ceased production.

The project proposal is seeking funding from the EU's NER300 (New Entrants’ Reserve of the European Emissions Trading Scheme for subsidising installations of innovative renewable energy technology and carbon capture and storage) and the Department of Energy and Climate Change funding programmes which are aimed at stimulating and encouraging investment in CCS.

Smith said:

"Scotland has the EU's largest potential offshore CO2 storage potential in the North Sea and we have a key role to play in developing this resource. The proposal from SSE to develop the CCS facility at Peterhead shows Scotland taking another step towards the better management of our emissions, and this will impact not just us in Scotland, or the EU, but further afield too.

"The European funding, provided by the NER300 scheme, is there to encourage the establishment of EU-wide demonstration projects across all Member States and which use a wide range of technologies. It is absolutely right that Scotland is represented in this programme.

"While CCS is not the ultimate answer, we must fully explore the possibilities that this technology offers. Scotland is best-placed to do just that: our research facilities and pilot projects, as well as our renewable energy potential more generally, provide the perfect field for further examination and development.

"SSE have my full support with this proposal."