Shell has signed an agreement to progress the Peterhead Carbon Capture and Storage (CCS) project to the next phase of design.

The project, which is being led by Shell with strategic support from SSE, aims to capture 10 million tonnes of CO2 over a 10-year period. The owners of the Peterhead gas power station in Aberdeenshire have said this would generate enough clean electricity to power up to 500,000 homes a year and, if successful, the project will represent the first industrial-scale application of CCS technology at a gas power station.

Ed Daniels, Chairman of Shell UK, explained: "The signing of this agreement is a hugely important step towards the UK delivering the world's first CCS demonstration facility on a gas-fired power station. The project has the potential to make gas, already the cleanest burning fossil fuel, even cleaner.

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"CCS could be critical to reducing carbon emissions at a time of growing global demand for energy. The successful demonstration of the technology at Peterhead would be a step towards proving its commercial viability as a tool for mitigating climate change.

"It could also help diversify the North Sea oil and gas industry – and so contribute to the sector's long-term commercial health."

Paul Smith, Managing Director, Generation, SSE, added: "SSE is proud to be working with Shell on proposals to install this cutting-edge technology at our Peterhead plant.

"CCS could play a major role in ensuring secure, low carbon energy in the future and we are pleased to be playing our part in its development."

Subject to positive final investment decisions by Shell and the UK Government, as well as the receipt of all relevant consents and permits, the project is expected to be up and running by the end of the decade.

(JP/MH)