Peterhead Power Station – our carbon capture future?

Peterhead Power Station


Element-Energy report pdf. Priorities for Scotland – capturing CO2, PPS retrofit, new/rebuilt coal, gas or biomass power stations with CCS, future-proofing St. Fergus gas terminal, transport pipelines, proposed Captain Clean Energy Project at Grangemouth.

Peterhead is the UK’s busiest and one of Europe’s largest white-fish ports. The town boasts a sheltered deep-water harbour with 24hr access and 3K of berthing. Quayside investment, a promised new fishmarket and green initiatives boost the potential of the Buchan area. Local work decommissioning North Sea Oil installations is forecast.

Consortium bid leaders Shell UK Limited, with strategic support from Scottish Hydro-Electric owner Scottish & Southern Energy (SSE), have been awarded UK government funding for onshore elements of carbon capture and storage (CCS) Front-End Engineering and Design (FEED) work at Peterhead Power Station (PPS). Similar FEED funding was awarded last year to Drax’s proposed White Rose Project in Yorkshire, where a coal-burning CCS operation is planned.

On July 8th 2014, the European Commission (EU) confirmed the award of €300m for the White Rose project. The announcement forms the centrepiece of the EU’s latest round of NER300 awards, which uses revenue raised from the sale of EU emissions allowances to fund development of cutting-edge clean energy projects.  Lock up your Carbon. New Scientist article

At PPS, Shell has awarded the FEED contract to Technip, who undertook a pre-FEED study for the project 18 months ago. The scope includes modifications to the existing (combined cycle gas turbine) power plant. Retro-fitting cutting-edge, embryonic technology at PPS will create the world’s first commercial-scale CCS plant. Using post-combustion capture and derivatives of ammonia to absorb waste carbon dioxide (CO2), the project would remove harmful greenhouse gas from the plant’s flue-gas stream. Over three decades at PPS, a million tonnes of CO2 emissions per annum in the form of liquified carbon will be compressed, then pumped offshore for long-term storage in Shell’s Goldeneye gas reservoir.  Scottish Carbon Capture & Storage

Critical in any future plans, PPS could expand to house the world’s first demonstrator of gas CCS from one end of the process to the other. The technology could extend the life of facilities at Peterhead by 10 years, inject £20 billion into the economy, create 1000 construction (and future operational) jobs, and reduce UK energy costs by £45 billion. Carbon sequestration and storage technology could reduce UK energy costs by up to £45 billion over the next three decades, although initial expenditure could be extortionate. Tube heat exchangers and titanium shells are not cheap and have never been previously built.

As the energy hub of Europe, North-East Scotland is already well-placed and prepared, with the the skills-base and industrial infrastructure to drive forward CCS. Ministers are depending on getting the technology working at scale as a major part of decarbonising electricity generation in order to meet targets to tackle climate change.    Clickgreen

On August 12th 2014 Shell announced that it will cut 250 jobs at its onshore North Sea oil operations in Aberdeen as part of a business restructuring. The job reductions will be implemented by the end of 2014 as Shell “reorganises its upstream onshore operations, to better serve the needs of its offshore facilities and to build a stronger long-term business in the North Sea”. Shell employs around 4,500 staff at its upstream operations in Scotland and 1,000 service contractors. Shell’s announcement follows a similar move in June by Chevron, which announced it would cut around 225 jobs in its North Sea operations. Shell is in the midst of a cost-cutting drive to boost revenue that will include the sale of $15 billion-worth of assets around the world, including North Sea operations.


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