Peterhead is well-located for transportation of carbon dioxide emissions and for subsequent storage, and a number of options for this are being considered. SSE will be discussing these, and the project in general, with the UK Government as part of a market-sounding exercise being launched today (8 July) by the Department of Energy and Climate Change (DECC).
The Energy Act 2010 provides for the creation of a financial incentive, funded by electricity suppliers, to support up to four CCS commercial-scale demonstration projects in the UK. The first project is being selected through the ongoing competition for a post-combustion capture project on a coal-fired power station.
In June 2010, the UK Committee on Climate Change (CCC), the independent body which advises the UK Government on setting carbon budgets, said that CCS equipment should be fitted to new gas-fired power stations. While its current policy, reflected in the Coalition Agreement, is to continue investment in CCS for four coal-fired power stations, the Government is considering the CCC's recommendations.
SSE is also developing plans for CCS on coal-fired power stations, and the Ferrybridge clean coal pilot project, a collaboration between SSE, Vattenfall, and Doosan Babcock in the UK, was awarded £6.3m by DECC, the Technology Strategy Board and Northern Way in April this year.
A different proposal to capture carbon dioxide emissions at Peterhead, and then export them to the North Sea for enhanced oil recovery and ultimate storage, was abandoned in 2007 because the then public policy framework did not allow adequate financial support.
Ian Marchant, Chief Executive of SSE, said:
"If long-term targets for reducing emissions are to be met, CCS technology is going to have to apply as widely as possible. This means gas-fired power stations as well as coal. I believe Peterhead represents the best site in the UK for a gas CCS project and I hope that our submission to the Government will be successful"
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