Power Generation

SSE applies for EU funding for Peterhead CCS project

Scottish and Southern Energy (SSE) has applied for EU funding to develop carbon capture and storage (CCS) at its Peterhead gas-fired power station in Aberdeenshire in Scotland.

The project would design and develop a post-combustion CCS facility capable of capturing CO2 from one of the 385 MW combined cycle gas turbine units at Peterhead.

The captured CO2 would then be transported to St Fergus for further compression before being transported via an undersea pipeline to a storage site in a former Shell UK North Sea gas reservoir.

Shell UK will itself take part in the project, along with CO2 Deepstore, a subsidiary of Petrofac, on the offshore transport and storage aspects.
SSE is seeking funds from the EU’s €13.5 billion NER300 initiative, which was launched last November and aims to provide support for at least eight CCS projects.

The initiative is supported by the European Investment Bank (EIB), which is drawing funds for it from the sale of carbon allowances under the EU Emissions Trading Scheme.

Peel Energy and another seven projects in the UK, including Alstom and troubled Powerfuel, are also bidding for funding, according to media reports. Other bidders include E.ON, RWE npower and EDF Energy.

SSE’s project will also be eligible for government funding via the Department of Energy and Climate Change’s £9 billion CCS programme, which was opened up to gas-fired power plants last year.

“I believe Peterhead represents the best site in the UK for a gas CCS project and our co-operation with Shell and Petrofac strengthens this proposition even further. Given the work already undertaken, the project can proceed at a pace at least equal to other CCS projects in Europe,” says SSE chief executive Ian Marchant.

For further information:

Related stories:
UK could create new carbon capture and storage industry, says research (31-Dec 2010)
Administrators called into UK carbon capture company Powerfuel (10-Dec 2010)
European Commission opens low-carbon investment fund (10-Nov 2010)
UK Government opens up CCS programme to gas (8-Nov 2010)

11 February 2011