The UK government has signed a multi-million-dollar carbon capture and storage deal with Shell as part of its Carbon Capture and Storage (CCS) project. The Peterhead Gas power station in Aberdeenshire will be the first gas plant in the world to capture carbon dioxide on an industrial scale and pipe it under the sea where it will be stored.
The Peterhead project is the second of two projects to be funded under the UK’s CCS competition. The White Rose CCS Project in Yorkshire is the other project.
Over the next two years, the government is investing around $167 million from a $1.67 billion CCS budget, with additional industry investment, to plan, design and engineer the UK’s first CCS projects.
Fossil fuels form 60-70 percent of the UK’s energy mix, and will continue to be important, but the government sees CCS as a key strategy to reduce carbon emissions while still using domestic gas. It also offers a new future for the North Sea by turning old oil and gas fields into CO2 stores.