A UK minister has said that a pioneering energy scheme in Aberdeenshire is “progressing well” and construction will begin “as soon as possible” after funding is agreed.
Energy Minister Matt Hancock made the remarks when he was asked about progress on Britain’s two carbon capture and storage (CCS) projects at Peterhead and Yorkshire.
The Shell-led CCS scheme at Peterhead would be the first of its kind in the world, with carbon emissions from the town’s gas power station stored in North Sea wells.
It is expected to secure funding from the UK Government’s £1billion CCS competition.
In response to a parliamentary question, Mr Hancock said yesterday that final investment decisions were expected next year.
The Conservative minister said: “Studies for the White Rose project in Yorkshire and Peterhead project in Aberdeenshire are progressing well.
“The companies involved are anticipated to take investment decisions in late 2015, with government taking decisions shortly after.
“We expect projects to begin construction and then operation as soon as possible after investment decisions have been taken, and the necessary consents and financing are in place.”
The Scottish Carbon Capture and Storage (SCCS) research group will hold its annual conference in Edinburgh today, with politicians and experts from across Europe attending.
Scottish Energy Minister Fergus Ewing said: “We recognise CCS as a critical technology for its potential to play a key role in helping Scotland to achieve its emissions reduction targets and the decarbonisation of our electricity generation sector.
“We firmly believe that the North Sea’s vast CO2 storage potential; coupled with our existing oil and gas capabilities, ready supply chain and existing infrastructure means that Scotland is in a strong position to be at the centre of CCS development in Europe.”
Professor Stuart Haszeldine, SCCS director, said: “Our conference highlights the huge potential that the North Sea, and Scotland, has for developing CCS networks to help achieve European decarbonisation while fossil fuels remain part of the energy mix, and preserving the economies of major industrial regions.”