The Peterhead CCS Project is in Aberdeenshire, Scotland. This project involves capturing around 85% of the carbon dioxide from an existing combined cycle gas turbine (CCGT) power station at Peterhead, before transporting it offshore and storing it safely in the Goldeneye depleted gas field 2.5km beneath the North Sea. The Peterhead CCS project is the world's first planned CCS project on a gas power station. If built, the project would capture 1 million tonnes of CO₂ each year and provide clean electricity to over half a million homes.

"Today I am signing a multi-million pound contract with Shell to develop their CCS project at Peterhead gas power station - the first project of its kind anywhere in the world. This a significant step in our CCS Programme. The capture, transport and storage technologies which make up CCS are not new. What is new are the commercial and legal frameworks which are needed to persuade companies to invest in this technology. We think the only way to develop those frameworks is by investing in the first commercial-scale projects."