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World’s first gas CCS plant planned at Peterhead, Scotland


by Tim Willmott : Be the first to leave a comment

Energy and Climate Change Secretary Ed Davey announced that “We have invested in the world’s first gas CCS plant today planned at Peterhead. This project envisions a cleaner, greener future for the North Sea and will support thousands of green jobs.”

Ed Davey was accompanied at the signing of the contract for the Peterhead project by Prime Minister David Cameron and Deputy Prime Minister Nick Clegg.

Prime Minister David Cameron said: “For many years the UK has supported the North Sea oil and gas industry and we have worked together to make this an economic success the whole country can be proud of. I promise we will continue to use the UK’s broad shoulders to invest in this vital industry so we can attract businesses, create jobs, develop new skills in our young people and ensure we can compete in the global race.”

Deputy Prime Minister Nick Clegg said: “The innovation of the UK’s energy industry is something we should be really proud of and the fact that we are a world leader in carbon capture and storage is a great example of our country’s ingenuity.

“Today’s multi-million pound deal with Shell will help to safeguard thousands of jobs and power half a million homes with clean electricity.

“It shows we can build a stronger economy and do it fairly by protecting our environment for future generations.”

The Peterhead and White Rose CCS projects are the EU’s largest commercially sized projects with this phase supported by around £100m from the UK Government. They could provide more than 2,000 jobs during construction and once built, clean electricity for over a million homes.

They demonstrate Government’s commitment to tackling climate change and are an example of the support provided by the UK Government to Scotland’s flourishing low carbon sector – support which runs to hundreds of millions of pounds a year.

CCS Commercialisation Programme

  • Peterhead and White Rose proposals are the two projects being supported under the Government’s £1 billion CCS competition.
  • £1bn has been committed to the Programme, with around £100m of that funding being invested now to support the detailed planning and engineering of these two projects
  • In late 2015, the projects will take final investment decisions with Government taking decisions shortly after on investing the remainder of the £1bn funding to support construction of up to two projects
  • The Peterhead and White Rose projects expect to award sub-contracts to around 10 UK based companies including Technip which is establishing a CCS Centre of Excellence at its Milton Keynes office.
  • As outlined in the Government’s Response to the Cost Reduction Task Force published in October 2013, DECC is continuing discussions with CCS developers outside of the Competition on what measures they may need to take their projects forward. This includes discussions with the Captain Clean Energy Project and the Don Valley CCS Project under the FID Enabling route.
  • The UK has the best offshore CO2 storage resources in Europe, estimated at around 70 billion tonnes which would be sufficient to store 100 years’ worth of current emissions from the electricity sector.
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Peterhead 57.508123, -1.784066 Peterhead (Directions)


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