News overview

Start of FEED study Peterhead Project

25 February 2014

The Secretary of State signed awarded funding to Shell UK Ltd to take forward Front End Engineering and Design (FEED) work for the Peterhead Carbon Capture and Storage (CCS) Project.

This is the second FEED announcement in the £1bn CCS Commercialisation Programme and follows a similar contract with the White Rose CCS Project in December 2013. The FEED programme has been designed to refine the project design, reduce technical risks and increase cost certainty prior to taking a final investment decision. It is an important stage in the development of major infrastructure projects. It represents a significant investment in the project by both the government and the bidder.

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.

Secretary of State for Energy and Climate Change, Edward Davey said:

"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."

Further information is available from the project websites: Peterhead CCS Project and
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25 February 2014

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