Equinor : Major engineering contract awarded at landmark Peterhead Carbon Capture Power Station

SSE Thermal and Equinor are developing what could become Scotland's first flexible power station equipped with carbon capture technology and have appointed a consortium to deliver the Front End Engineering Design (FEED) contract.

Mitsubishi Heavy Industries Group, Worley and Técnicas Reunidas will deliver a detailed plan for Peterhead Carbon Capture Power Station, which would have a generating capacity of up to 910MW.

The station would connect into the Scottish Cluster's CO2 transport and storage infrastructure, which underpins plans to deliver one of the UK's first low-carbon industrial clusters.

The current Peterhead Power Station plays an essential role in keeping the lights on and is crucial to Scotland's electricity system. There is a clear need, however, to decarbonise power generation and the proposed Peterhead Carbon Capture Power Station represents this next phase of society's energy transition - helping to meet net zero targets in Scotland and the UK, while providing flexible back-up to Scotland's growing renewables sector and bolstering security of supply.

The UK Government has set ambitious targets for the country to become a world leader in carbon capture and storage, and Peterhead Carbon Capture will play a pivotal role with the ability to capture up to 1.5MT of carbon annually, which represents around five per cent of the Government's 2030 target.

A recent report by SSE shows that the new development would create significant economic benefits in the transition to net zero, with £60m 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 £25m will be added to the wider Aberdeen economy each year, with around 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

(Photo: Equinor)

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 compliment 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."

Bradley Andrews, President at Worley, on behalf of Mitsubishi Heavy Industries Group, Worley, and Técnicas Reunidas consortium, said: "Cooperation with a common vision is key to the energy transition. The consortium's work with SSE Thermal and Equinor is an example of how companies can collaborate to overcome the challenge of reaching net zero. This project will produce flexible and clean power allowing further renewable generation while reducing carbon emissions at scale. It's a landmark project for Scotland in its ambitions to help decarbonise industrial clusters in the UK - and it supports our efforts in delivering a more sustainable world."

A S36 planning application for the project was submitted to the Scottish Government's Energy Consents Unit in March of this year.

For further information, please contact:

Nick Hanlon, SSE Thermal, on [e-mail]
Alice Baxter, Equinor, on [e-mail]

Cluster Sequencing Process

From July, the UK Government will announce which projects are progressing to negotiations as part of the Cluster Sequencing Process. SSE Thermal and Equinor submitted Peterhead Carbon Capture Power Station into the competition at the start of the year, and in March it was taken forward to the evaluation stage. The Scottish Cluster, however, is currently a reserve cluster with the UK Government yet to outline a route forward.

The UK Government's stated ambition is for one power-CCS project by the mid-2020s and an ambition to start competitive allocation later in the decade. Multiple CCS-equipped power projects will be needed by 2030 to keep the UK on a trajectory to net zero.

Socio-economic benefits

SSE Thermal and Equinor are committed to supporting the supply chain across the UK and will, wherever possible, ensure investment benefits local businesses and communities.

A recently released socio-economic report outlined that the plant could deliver £1.2bn for the UK economy, including £660m in Scotland and significant benefits for the local area.

About Equinor

Equinor is the country's leading energy provider, supplying natural gas, oil and electricity, and aims to reach net zero emissions globally by 2050. It is a leader in carbon capture & storage and hydrogen, developing the H2H Saltend low-carbon hydrogen production plant that is at the heart of the Zero Carbon Humber alliance. It is collaborating with SSE Thermal on low-carbon power projects using hydrogen and carbon capture in the Humber and a further carbon capture power project in Scotland. It is partnering in the Net Zero Teesside power project and, as part of the Northern Endurance Partnership, it is developing CO2 transport and storage infrastructure for the East Coast Cluster, comprising the Humber and Teesside.

Equinor's UK activities also include operating offshore oil and gas fields and offshore wind farms, and its expansion plans include Dogger Bank, the world's largest offshore wind farm. Find out more at www.equinor.co.uk.