Shell signs North Sea CCS deal
24 Feb 2014
The UK government has today announced a deal with Shell to develop the world’s first gas carbon capture & storage (CCS) project in Aberdeenshire, Scotland.
Prime Minister David Cameron and Energy secretary Edward Davey this morning unveiled plans by Shell to develop and install gas CCS technology at Peterhead combined cycle gas turbines (CCGT) plant in Aberdeenshire, backed by £100 million on government funding.
The plant would have the ability to transport any captured CO2 100km offshore, for storage 2km under the North Sea in the Goldeneye gas field.
The project will divert up to 1 million tonnes of carbon emissions from the existing Peterhead power plant, with the CO2 also potentially being used for enhanced oil recovery projects.
By bringing forward CCS, we could save more than £30bn a year by 2050
Energy secretary Edward Davey
The Peterhead project, alongside the White Rose plant in Yorkshire, will receive £100 million of a £1 billion investment fund to help advance the next stages of its development.
Director of the UK Carbon Capture and Storage Research Centre (UKCCSRC) Jon Gibbins said: ”CCS is imperative for the UK to reach our emission reduction targets and these FEED (Front End Engineering Design) study projects will capitalise on the growing research knowledge base in the UK”
“Peterhead will show the world the value of natural gas with CCS for effective low-emission electricity production,” Gibbins added.
Shell will make a final investment decision on Peterhead CCS next year, with the government scheduled soon after to make its decision on investing the remainder of the £1bn funding to support construction of up to two projects.
“By bringing forward CCS, we could save more than £30bn a year by 2050,” said Davey.
”Without it, achieving an affordable, low carbon energy mix with renewable and nuclear energy alone will be much more difficult and more expensive.”
Today’s announcement comes alongside publication of Sir Ian Wood’s full report into the regulation of the UK Continental Shelf (UKCS).
The report, which follows the interim review published in November last year, outlines some of the issues surrounding the future of UK oil and gas exploration and production, offering recommendations designed to help strengthen the sector.
The report also highlights the “light touch regulation” applied when oil and gas fields were first being developed as a problem area, urging for a better resourced and more proactive regulator to assist companies and field operators.
