Peterhead Carbon Solution To Provide $1.5Bn To UK Economy

Peterhead Carbon Solution To Provide $1.5Bn To UK Economy
A planned power station with a CCS solution at SSE Thermal's Peterhead site could generate around $1.5Bn to the UK throughout its lifetime.

A planned power station with a carbon storage solution at SSE Thermal’s Peterhead site could generate around $1.5 Bn to the UK-wide economy throughout its lifetime.

The ‘Powering the Next Generation’ report highlights the potential socio-economic benefits of the Peterhead Carbon Capture Power Station, which is being developed by SSE Thermal and Equinor.

The proposed plant could become one of the UK’s first power stations equipped with a carbon capture plant to remove CO2 from its emissions and would connect to the Scottish Cluster’s CO2 transport and storage infrastructure, which underpins plans to deliver one of the UK’s first low-carbon industrial clusters.

Based on analysis from BiGGAR Economics, the report highlights the scale of the economic impact at a local, regional, and national level. In total, it is estimated that $2.7 billion will be invested throughout the development, construction, and the first 25 years of its operational life.

That will create significant benefits, with the report showing that over $73 million is expected to be contributed to the Aberdeen City and Shire economy during development and construction, with 980 years of employment supported. Over the station’s operational lifetime, it is estimated that around $30 million will be added to the wider Aberdeen economy each year, with around 240 jobs supported on an annual basis.

On a Scotland-wide level, the analysis shows that $232 million 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 $43 million would be added to the Scottish economy annually with 290 further jobs supported each year.

Finally, at a UK level, the report estimates that $575 million would be added to the economy through development and construction, as well as 7,850 years of employment. On an annual basis once operational, the plant would contribute an average of around $61 million to the UK economy and support 560 jobs.

“Carbon capture, utilization, 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,” Net-Zero and Energy Secretary Michael Matheson said.

“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. This is why the UK Government must award the Scottish Cluster clear and definitive Track-1 status.

“We continue to press them to reconsider their decision and work in collaboration with the Scottish Government to accelerate support for the energy transition in Scotland. This includes offering £80 million under our Emerging Energy Technologies Fund to accelerate the Cluster’s deployment,” Matheson stated.

“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 proposed Peterhead Carbon Capture Power Station would provide essential flexible and reliable power to keep the lights on and back up Scotland’s world-leading renewables sector while helping to meet our climate action targets. But the benefits stretch even further as we look to maximize the positive impacts of the energy transition for workers and communities in the North-East of Scotland,” Catherine Raw, Managing Director for SSE Thermal, says.

“While we await clarity from the UK Government on the timeline for deployment of the Scottish Cluster, we are pushing ahead with our development plans, and last month we submitted a planning application for the new low-carbon plant – which as of this new report shows, has the potential to be a game-changer for the region and Scotland,” she added.

“Peterhead Carbon Capture Power Station is a significant project that will get the UK closer to its net zero goal, while also working alongside intermittent renewables and enhancing low-carbon energy security,” Grete Tveit, Senior Vice President for Low Carbon Solutions at Equinor, said. “Together with our longstanding partner SSE, we’re committed to delivering our hydrogen and CCS projects such as Peterhead Carbon Capture Power Station to help Scotland and the UK become a world leader in low carbon technologies. While supporting the decarbonization efforts, this project will also offer great benefits for the local economy and supply chain, safeguarding high-value jobs and creating new ones.”

Along with their plans at Peterhead, SSE Thermal and Equinor are also working in collaboration on three low-carbon projects in the Humber region in England, including Keadby Carbon Capture Power Station in North Lincolnshire.

Also, Keadby Hydrogen Power Station at the same site would be the world’s first major 100 percent hydrogen-fueled power station, while Aldbrough Hydrogen Storage on the East Yorkshire coast would be one of the world's largest hydrogen storage facilities.

To contact the author, email bojan.lepic@rigzone.com



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