Carbon capture project worth up to £60m to north-east, report finds

A major project to capture and store carbon at a power plant in Peterhead could bolster the region’s finances by £60 million, a new report has found.

Further, the Peterhead Carbon Capture Power Station could add £1.2 billion to the UK-wide economy throughout its lifetime, according to analysis from BiGGAR Economics.

The carbon capture scheme is being developed by SSE Thermal, owner of the Peterhead power plant, and Norwegian energy giant, Equinor.

The pair expect the Peterhead facility could become one of the first to be equipped with the ability to capture carbon.

The plan is to build on spare land within the existing site of the gaspowered plant and ultimately the aim would be for the new station to replace the existing facility, SSE said.

It would connect to the Scottish cluster’s transport and storage infrastructure underpinned by the Acorn project, located just up the coast at the St Fergus gas terminal.

The Powering the Next Generation report showcases the scale of the socio-economic benefits arising from the power station.

It is estimated that £2.2bn will be invested across the development, construction and first quarter of a century of the facility’s operational life.

Once fully active, the power station will prop up around 240 green jobs on an annual basis, and add around £25m to the local economy.

On a Scotland-wide level, the analysis shows that £190m would be added to the economy during development and construction, with 3,070 years of employment supported.

Across the lifetime of the station, an average of around £35m would be added to the Scottish economy each year, with 290 further jobs supported.

It is hoped that Peterhead Carbon Capture Power Station could be up and running as early as 2027, if the necessary mechanisms are put in place.

Scotland’s net-zero and energy secretary Michael Matheson said: “Carbon capture, utilisation and storage is critical for meeting, not only Scotland’s statutory emissions reduction targets, but those set across the UK.

“Indeed, advice from the Climate Change Committee describes the technology as a ‘necessity, not an option’.

“The innovative Peterhead CCGT Power Station is a fantastic example of how Scotland’s energy sector can make the transition to net-zero and – as this study demonstrates – benefit the Scottish economy, providing employment and a just transition for our workforces. It shows just how important it is to invest now in carbon capture technology.”

He added the UK government must also support low carbon energy projects in the region.

Catherine Raw, managing director for SSE Thermal, said: “Peterhead is vital to Scotland’s energy system and we are committed to delivering a secure and credible transition to net-zero by building a new low-carbon power station at the site.”

The facility being developed in Peterhead.