On February 24th, Energy and Climate Change Secretary Edward Davey visited Peterhead with Deputy Prime Minister Nick Clegg, to sign a multi-million pound deal with Shell to develop the next stage of their Carbon Capture and Storage (CCS) project on a gas-fired power station – a world first in low-carbon projects.
Deputy Prime Minister Nick Clegg said:
“The innovation of the UK’s energy industry is something we should be really proud of and the fact that we are a world leader in carbon capture and storage is a great example of our country’s ingenuity.
“Today’s multi-million pound deal with Shell will help to safeguard thousands of jobs and power half a million homes with clean electricity.
“It shows we can build a stronger economy and do it fairly by protecting our environment for future generations.”
The Peterhead and White Rose CCS projects are the EU’s largest commercially sized projects with this phase supported by around £100m from the UK Government. They could provide more than 2,000 jobs during construction and once built, clean electricity for over a million homes.
They demonstrate Government’s commitment to tackling climate change and are an example of the support provided by the UK Government to Scotland’s flourishing low carbon sector – support which runs to hundreds of millions of pounds a year.
The Wood Report
The British economy could receive a potential £200 billion boost over the next 20 years, through the recovery of an additional 3-4 billion barrels of North Sea oil and gas, according to a report commissioned by the UK Government published today.
Government using the security of its pooled resources, will be able to fast-track all the recommendations of Sir Ian Wood’s ground-breaking review on maximising recovery from the UK Continental Shelf.
The UK government offers the strongest basis to unlock the investment needed to achieve the objective Sir Ian outlines of maximising economic production. This will involve improving the efficiency with which the industry operates, increasing production of oil and gas by one third, and boosting jobs in an industry that already employs 450,000. Whilst short-term prospects are good, with investment at record levels of £14 billion, the UK Continental Shelf faces unprecedented challenges.
The Wood report UKCS Maximising Recovery Review is available here