Energy firms sign carbon capture deal

ENERGY giants Shell and Scottish and Southern Energy have teamed up on a project to build a carbon storage facility aimed at stopping harmful gases from entering the atmosphere.

The carbon capture and storage (CCS) technology would be built at Scottish and Southern Energy’s gas-fired plant in Peterhead, Scotland.

It will allow gases to be captured from the plant to limit the damage to the environment.

It would be an experimental facility which if successful could become widespread across the energy industry.

In May the UK government announced that the project was one of the seven UK CCS applications to the European Investment Bank for funds. Ian Marchant, chief executive of SSE, said: “If long-term targets for reducing emissions are to be met, CCS technology must be applied as widely as possible.

We therefore welcomed the government’s decision to include gas-fired generation plants in its CCS demonstration programme.”

Last month the UK government said it was scrapping plans for the country’s first coal-fired power plant with CCS technology to be established at Scottish Power’s plant at Longannet.

Meanwhile SSE said yesterday its profits for the six months to 30 September dropped 25 per cent to £287.4m as gas and electricity consumption fell.