The world’s first commercial scale, gas-powered CCS plant was set to be built in Peterhead, had the UK funding-bid competition gone ahead.
However the UK government now seems to be much more focused on nuclear power alone, to deliver UK energy requirements, with much emphasis put on projects such as Hinkley Point.
The timescale for this project’s completion likely to be at least 10 years while the costs to develop such a plant remain extremely high.
Hector Grant, Chief Executive, Scottish Energy Association, said: “The decision – which was made was made as part of Chancellor Osborne’s autumn spending review – has left both Shell and SSE, who had been working towards this final project at Peterhead, extremely disappointed, following years of planning and progress.
“It is certainly of significance to those working within the energy industry that the government has axed £1 billion originally ring-fenced for the Carbon Capture and Storage (CCS) Competition.
“This scheme looked to develop the technology within fossil burning power stations. Regrettably, it will not now be going forward.
“Many believe this to be a disregard for not only the scheme itself but also the possibilities that it would bring with it, including the creation of new jobs and innovative processes with the main focus on cutting emissions.
“With investment of many billions needed to provide secure, affordable and low carbon solutions, the UK investment community wants to see a stable investment framework that is aligned to these objectives.”