Energy firm SSE has entered into a joint development agreement with oil and gas firm Shell UK to develop the proposed carbon and capture and storage (CCS) gas fired power station in Peterhead, Aberdeenshire.
Both firms will develop the pre-Front-End Engineering Design (pre-FEED) studies with the intention to begin a full FEED study by the second half of 2012. The project has been shortlisted to receive funding from the European Union.
The team hope to develop a CCS facility at SSE’s 385MW combined cycle gas turbine unit at Peterhead power station. Under the plans, carbon will be captured, stored and transported to the Shell operated Goldeneye gas field in the North Sea, using as much existing infrastructure as possible.
The project is one of seven UK CCS applications to the European Investment Bank’s European Union NER (New Entrant Reserve) scheme to support CCS and renewable energy projects across the UK. Up to three projects from each member state can receive a part of the €4.5bn (£3.9bn), due to be allocated next year.