Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

‘Rug pulled’ on carbon capture bid

‘Rug pulled’ on carbon capture bid
Plans to base the UK's first carbon capture and storage centre in the north-east are in jeopardy amid doubts over a £1billion funding pot.

Plans to base the UK’s first carbon capture and storage centre in the north-east are in jeopardy amid doubts over a £1billion funding pot.

Peterhead Power Station was tipped to win a major slice of the UK Government investment – but MPs claimed last night the scheme had been “kicked into the long grass”.

The fears were raised after Chief Treasury Secretary Danny Alexander suggested that much of the £1billion could be spent on other projects because it would not be needed to develop the pioneering green energy technology in this parliament.

In the wake of his comments, the Department of Energy and Climate Change (DECC) tried to reassure the industry that the funding remained on the table and it expected to commit some of the investment during the current spending review.

The SNP and Labour claimed the Tory and Lib Dem coalition at Westminster had “pulled the rug” from the Peterhead project and killed any chance of progressing it in the next few years.

Mike Weir, SNP energy spokesman, said: “Danny Alexander’s comments have blindsided the industry and we need immediate clarity from the Treasury over the UK Government’s commitment to invest in carbon capture and storage.

“Any prospect of investing in the carbon capture project at Peterhead has been kicked into the long grass, beyond the term of this Westminster parliament – in which case Danny Alexander has a great deal of explaining to do.”

Labour’s shadow energy minister, Tom Greatrex, said: “With no consultation with the industry, Danny Alexander has at a stroke ruled out any meaningful progress on the CCS project at Peterhead in this parliament.”

The gas-fired power station on Peterhead’s outskirts was considered to be in pole position for a slice of the £1billion investment to develop the technology after the collapse of a similar coal-fired project at Longannet in Fife.

Scottish and Southern Energy and Shell announced this month they had reached an agreement which could lead to initial work starting on the CCS centre at Peterhead within a year, but added it would be dependent on UK Government and EU help.

The DECC last night said:

“Nothing has changed – £1billion remains available to support CCS projects.

“As Energy Secretary Chris Huhne has made clear, there are a number of promising CCS projects in the UK and Peterhead is one of them.”

The Aberdeenshire town was previously put forward as a CCS base – but a scheme by offshore giant BP was abandoned in 2007.

Mr Alexander reportedly said “much of the money that we’d allocated to spend in this parliament we’ve now reallocated to different sorts of projects”.

Chancellor George Osborne will deliver his autumn statement today and is expected to announce £30billion of investment in infrastructure schemes to try to help grow the economy.

Recommended for you

More from Energy Voice

Latest Posts