Key contract awarded at landmark Scottish carbon capture project

A major engineering contract has been awarded at a landmark carbon capture project in the north-east of Scotland.

SSE Thermal and Equinor are developing what could become Scotland’s first “flexible power station” equipped with carbon capture technology. They have appointed a consortium to deliver the front end engineering design (FEED) contract.

Mitsubishi Heavy Industries Group, Worley and Técnicas Reunidas will now deliver a detailed plan for Peterhead carbon capture power station, which would have a generating capacity of up to 910 megawatts.

The planned station would connect into a CO2 transport and storage infrastructure that forms part of plans to deliver one of the UK’s first low-carbon industrial clusters.

A recent report by energy giant SSE shows that the new development would create significant economic benefits in the transition to net zero, with £60 million expected to be contributed to the Aberdeen city and shire economy during development and construction. Over the station’s operational lifetime, it is estimated that around £25m will be added to the wider Aberdeen economy each year, with some 240 jobs supported on an annual basis.

Catherine Raw, managing director at SSE Thermal, said: “As renewables scales up, the importance of flexible energy only increases - however that generation needs to be decarbonised which is why we are committed to delivering this landmark carbon capture project at Peterhead.

“As we begin work with the consortium on the engineering design, we hope to see the UK government recognise the need for multiple power-CCS plants when it provides an update on cluster sequencing later this month. Crucially, it must give clarity on the Scottish cluster and accelerate its development, which is necessary if Scotland’s net zero ambitions are to be achieved.”

Grete Tveit, senior vice president for low carbon solutions at Equinor, said: “This is an important step in realising our ambition to build Scotland’s first flexible power station equipped with carbon capture technology. By providing low carbon back-up power to complement intermittent renewables generation, Peterhead carbon capture power station will improve energy security through the energy transition.

“We are excited to be working with SSE Thermal and the consortium to deliver this critical project, unlocking investment that will bring both local employment and supply chain value.”