SSE and Equinor launch fresh bid for Peterhead CCS project

SSE and Equinor have revived plans for Peterhead Power Station to be fitted with carbon capture technology, with the aim of bringing the project online by 2026.

Peterhead Carbon Capture & Storage (CCS) Power Station is planned to be a new 900MW gas-fired power station with up to 1.5 million tonnes of CO2 being captured every year.

The Aberdeenshire facility would use the Acorn CO2 storage site, located 100km offshore in rock formations deep below the North Sea. Peterhead CCS Power Station and the Acorn Project both won funding from the government’s £171 million pot for the Industrial Decarbonisation Challenge Fund in March, as part of Scotland’s Net Zero Infrastructure programme.

The project is the latest development in the partnership between SSE Thermal and Equinor, which last month announced plans to develop a “clean power hub” in the Humber region, utilising CCS and hydrogen.

The announcement follows a decade of attempts to fit CCS to the plant, including partnerships with BP and Shell.

SSE and Equinor insisted that the project could still be one of the country’s first CCS power plants but stressed that final investment decisions “will depend on the progress of the necessary business models and associated infrastructure”.

However, it said that with the “appropriate policy mechanisms in place”, the new station could come online by 2026, in line with government ambitions for ‘Track 1’ industrial cluster projects and the proposed timelines for the Acorn Project.

Energy minister Anne-Marie Trevelyan said: “Carbon capture storage technology is one of the most exciting and innovative ways that we’re looking to tackle climate change, and today’s announcement marks a significant step towards a greener, more sustainable future for Scotland and the whole UK.

“Once up and running, CO2 emissions saved through this station alone will be the equivalent of taking 60 million cars off the road every year. Developing and applying this technology in Scotland will be a key element in the energy transition whilst creating a skills base and jobs on the ground that will endure and grow for decades to come.

The UK government has set out plans to work hand in hand with industrial areas and businesses to ensure they have the skills needed to lead the way.”

Stephen Wheeler, managing director of SSE Thermal, said: “Through cutting-edge carbon capture technology, we can decarbonise this vital flexible power generation, as well as heavy industry and other hard-to-reach-sectors of the economy, which will be crucial in Scotland transitioning to a net zero future. Ahead of the critical COP26 conference in Glasgow this year, there is a clear opportunity to demonstrate leadership on CCS, maximising the benefits of a green recovery in industrial regions, and ensuring a just transition for workers and communities.”