25.02.2014 • NewsShellcarbon emissionsCCS

Shell Secures Funding for Scottish Carbon Capture Project

Shell has secured millions of pounds of funding from the British government for the next stage of its carbon capture and storage (CCS) project at SSE's Peterhead gas plant in Scotland, Shell and the government said on Monday.

The demonstration project, led by Shell with support from the plant owner SSE, aims to become the world's first large-scale CCS project at a gas-fired power plant.

"The government has agreed a multi-million pound contract for engineering, design and financial work on the Peterhead CCS project in Aberdeenshire," Ed Davey, Britain's Secretary of State for Energy and Climate Change.

"If built, the project could save one million tonnes of CO2 each year," he added.

CCS technology captures carbon dioxide emissions from power stations and other industrial sites. Once captured, the carbon dioxide is transported to formations deep underground such as depleted oil and gas reservoirs, where it is stored.

CCS has been proven to work in several small pilot schemes around the world but has yet to be operated commercially and at a large scale.

A study last week showed that schemes in the United States, Canada and China are approaching completion but Europe is lagging behind.

The British government wants to develop CCS to help it meet both national and international targets to reduce environmentally-damaging greenhouse gas emissions.

By 2050, CCS could save more than 30 billion pounds ($50 billion) a year in fighting climate change, it said.

The government is investing around 100 million pounds in two CCS projects in Britain - the Peterhead scheme and the White Rose project in Yorkshire, which is developing a new coal power plant with CCS. Financial investment decisions on the projects will be made by late 2015.

Scheduled to be operational by the end of the decade, Peterhead CCS aims to capture and store over 85% of the carbon dioxide emissions from one of the gas plant's three turbines. "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," Shell said.

Free Virtual Event

Vaccine Manufacturing
Bioprocess Forum

Vaccine Manufacturing

Join global experts and innovators for a two-day virtual event exploring the latest breakthroughs and best practices in vaccine manufacturing. Discover how new technologies and process innovations are shaping the future of vaccine production, safety, and scalability.

Virtual Event

Digitalization in the Chemical Industry
CHEManager Spotlight

Digitalization in the Chemical Industry

Save the Date: October 22, 2025
The event will be promoted to a combined audience of over 100,000 professionals across Europe through the CHEManager and CITplus networks.

most read

Photo
27.03.2025 • News

J&J to Invest $55 Billion in US Operations

US healthcare giant Johnson & Johnson (J&J) has unveiled plans to invest over $55 billion in the US over the next four years. This significant investment marks a 25% increase compared to the previous four years, the company said.

Photo
21.03.2025 • News

What’s Next for Pharma Supply Chains?

Sudden shifts in demand, supply shortages and global collapse have put immense pressure on pharmaceutical logistics. To address these challenges, PHARMAP 2025 brings together industry experts to discover AI-driven supply chain optimisation, strategic logistics partnerships and digital solutions that enhance efficiency and resilience in the pharmaceutical supply chain.