The UK's first power Carbon Capture and Storage (CCS) project, proposed by Scotland's SSE Thermal and partner Equinor, has been granted planning permission.

The proposed plant in North Lincolnshire has received a Development Consent Order following an extensive period of consultation, with the Secretary of State for Business, Energy and Industrial Strategy (BEIS) granting permission after a recommendation from the Planning Inspectorate.

It is the latest milestone achieved by the project and marks a major step forward for Keadby 3, which is currently in the due diligence stage of the UK Government's Cluster Sequencing Process. This process will give the project the opportunity to receive government support, allowing it to deploy cutting edge carbon capture technology and to connect to the shared CO2 and hydrogen pipelines being developed as part of the Zero Carbon Humber and East Coast Cluster proposals.

Keadby 3 would have a generating capacity of up to 910MW and capture up to one and a half million tonnes of CO2 a year, which represents at least five per cent of the UK Government's 2030 target. The low-carbon flexible power station could be operational as early as 2027, assuming success in the UK Government's Cluster Sequencing Process leading to a Final Investment Decision.

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Earlier this year, SSE Thermal and Equinor awarded a Front End Engineering Design (FEED) contract for the proposed plant to a consortium comprising Aker Solutions, Siemens Energy and Altrad Babcock, with Aker Carbon Capture supporting on the carbon capture technology.

SSE Thermal and Equinor are also collaborating on Peterhead Carbon Capture Power Station in the north-east of Scotland. In addition, they are developing Keadby Hydrogen Power Station, which could be the world's first large-scale 100% hydrogen-fuelled power stations, and Aldbrough Hydrogen Storage, which could provide vital storage to balance intermittent supply and demand.

Catherine Raw, Managing Director of SSE Thermal, said: "Together with Equinor, SSE Thermal is committed to delivering low-carbon flexible power. We are doing everything we can to ensure that Keadby 3 Carbon Capture Power Station is in the best position possible when the UK Government confirms the next steps around its plans to decarbonise industrial clusters.

Catherine Raw, Managing Director Of SSE Thermal, said: "Together with Equinor, SSE Thermal is committed to delivering low-carbon flexible power. We are doing everything we can to ensure that Keadby 3 Carbon Capture Power Station is in the best position possible when the UK Government confirms the next steps around its plans to decarbonise industrial clusters.

"To become the first power CCS project in the UK to receive planning consent is testament to the strength of Keadby 3, which is capable of playing a major role in achieving a net zero electricity system while providing vital flexible backup to renewables. This crucial project can underpin investment in shared CCS infrastructure and unlock wider decarbonisation and investment opportunities for the Humber, and we look forward to continued progress."

Grete Tveit, SVP for Low Carbon Solutions, Equinor, said: "This news is a significant milestone for our joint ambition to deliver clean, flexible and efficient power to support intermittent renewable generation and maintain security of supply. Together with SSE Thermal, we are delighted to be in a position to continue developing the proposed Keadby 3 Carbon Capture Power Station.

"This project will not only support the decarbonisation efforts in the UK but will also have a positive impact on the local economy and supply chain, protecting existing jobs and creating new ones."