Shell and SSE are looking to develop the world’s first full-scale gas carbon capture and storage (CCS) project – the Peterhead CCS Project. Up to 10 million tonnes of carbon dioxide emissions could be captured from the Peterhead Power Station and transported by pipeline offshore for long-term storage deep under the North Sea.
In March 2013, the Peterhead CCS Project was chosen as one of two CCS demonstration projects to progress to the next stage of the Government’s CCS Commercialisation Competition funding.
The project is now in the next phase of design, a phase known as Front-End Engineering Design, or FEED. An agreement was signed between Shell and the UK Government on February 24, 2014, allowing the project to move into this phase, which is expected to last through 2014 and 2015.
About the Peterhead CCS Project
Shell U.K. Limited and SSE are looking to develop the world’s first commercial-scale full-chain gas carbon capture and storage (CCS) demonstration project – the Peterhead CCS Project. Up to 10 million tonnes of carbon dioxide (CO2) emissions could be captured from the Peterhead Power Station in Aberdeenshire, Scotland and then transported by pipeline and stored, approximately 100km offshore in the depleted Goldeneye gas reservoir, at a depth of more than 2km under the floor of the North Sea.
The proposed Peterhead CCS Project will be a significant step forward in developing CCS technology and helping to decarbonise the UK’s power sector. Adding CCS to a gas power plant can reduce CO2 emissions by more than 90%. In addition, CCS is the only way to collect the CO2 from heavy industry, such as cement and other industrial facilities.
In November 2012, the joint Government and Industry CCS Cost Reduction Task Force reported that gas and coal power stations equipped with CCS have clear potential to be cost competitive with other forms of low-carbon power generation.
In this way, gas can play a long-term role in the low carbon electricity mix and address the intermittency challenges with renewable forms of energy. The Task Force report also expects that, through CCS clustering, new jobs will be created in the CCS industry by 2030, as well as protecting existing jobs.
Subject to securing the necessary approvals, and with the appropriate commercial arrangements in place, the project is expected to capture in the region of 10 million tonnes of CO2 during its anticipated 10- to 15-year life.
Shell is already participating in a number of CCS projects worldwide including the largest CO2 capture demonstration facility in the world, the European CO2 Technology Centre Mongstad, Norway. Shell is also developing the Quest project in Canada, which is at an advanced stage of construction, and is a partner in Australia’s Gorgon natural gas liquefaction project.
Cansolv Technologies Inc. (a subsidiary of Royal Dutch Shell) is providing the CO2 capture technology for SaskPower’s Boundary Dam project in Canada, which began operations in October 2014.
It is very important to us that the proposed Peterhead CCS Project is developed with input from the local communities and stakeholders around Peterhead. To achieve this we committed at the outset to ongoing engagement throughout the development of the project and, specifically, to three phases of public consultation prior to the submission of our planning applications. These three phases were completed in February 2015.
Our first phase of public consultation included a series of exhibitions in the communities closest to the proposed project – Boddam, Peterhead and Cruden Bay – as well as in Fraserburgh and Aberdeen. Over 500 people attended these exhibitions, at which the public were invited to read about the project plans as they then stood, ask questions of members of our project team and provide us with feedback.
Our second phase of public consultation took place throughout the summer of 2014 and consisted of the following events and briefings: public exhibitions in Boddam and Peterhead, a series of CCS-focused site tours of the Peterhead Power Station, project update presentations to local community councils and other community organisations and project presence at two key community events in July and September.
The purpose of this phase was to provide an update on how our design work was progressing, to respond to feedback received during Phase 1 and to listen to further feedback.
Phase 3 of public consultation took place from December 2014 to February 2015 and consisted of three public exhibitions – one in Boddam and two in Peterhead – and a number of update briefings to local community councils and other interested groups. During these events and briefings, we shared details of the expected content of our offshore and onshore environmental impact assessments as they neared finalisation. We invited discussion and feedback on these proposals and provided a further update on how earlier feedback had been used to shape these plans.
The feedback gathered during the three phases of consultation was used to inform our design and planning work and our final environmental assessments, both offshore and onshore, supported by wider, ongoing stakeholder engagement and consultation.
A summary of the consultation undertaken to support the development of the Project is provided within what is known as the Pre-Application Consultation (PAC) Report, which has been submitted to Aberdeenshire Council, as part of the Project’s overall Planning Application. Please see the section below on ‘The Offshore and Onshore Environmental Impact Assessment (EIA) Process’ for further information on where to view this report or to download it directly from this site.
While these three phases of consultation are now over, we will continue to engage with local communities throughout 2015 and during the construction and operations phases of the project.
Our Community Liaison Officer, Liz Scott, is also available two days per week (Thursday and Friday) to meet with people, listen and respond to queries and accept feedback. She is based in The Hotspot, 1-3 Kirk Street, Peterhead or may be contacted on 078 91315194.
Opportunities on the Project
Throughout the construction and operations phases of the Peterhead CCS Project, Shell is committed to maximising benefits to local communities. The main benefit will be the contribution to the local economy during the anticipated two-and-a-half year construction phase, which is expected to start in 2016.
During construction, there is likely to be an average construction workforce on-site of approximately 400 people, which may reach 600 people at peak construction.
Shell will employ a partnership approach to ensuring that local opportunities are explored and optimised. These will include employment opportunities for locals (where appropriate skills and levels of experience exist), sub-contracting and supply opportunities for local businesses and opportunities for local facilities and service providers.
The partners in this effort will be Shell; SSE as strategic partners in the project; the main contractors who will be carrying out the construction work; Scottish Enterprise, who have vast experience of supporting SMEs and the development of new industries; and Aberdeenshire Council, who have extensive local knowledge and experience of supporting the delivery of local benefits during other local development projects.
A local ‘Meet-the-Buyer’ event will be held in spring 2015 to create early awareness of potential contract opportunities and ensure local businesses have time to position themselves to tender, if interested.
We will also make use of SSE’s Open 4 Business portal to advertise any upcoming work packages and contracts.
The Offshore and Onshore Environmental Impact Assessment (EIA) Process
As there are both offshore and onshore elements associated with the Peterhead CCS Project, the Project was required to carry out two separate EIAs.
The Offshore EIA consisted of a detailed study of all of the potential environmental impacts associated with the offshore scope of work for the Peterhead CCS Project, and was conducted in 2014. This study covered a wide range of topics associated with activities on the project from the Mean Low Water Mark (close to the Peterhead Power Station in Sandford Bay) to the offshore Goldeneye reservoir, including all work on the wells, the existing Goldeneye Platform, as well as on the proposed new section of pipeline.
The output of this study work, the Offshore Environmental Statement (ES), was completed and submitted to the Department of Energy and Climate Change (DECC) in January 2014. The period of public consultation for this is now closed. The Offshore ES is available for viewing and download below.
The Onshore EIA consisted of a comprehensive study of the potential environmental impacts associated with the onshore elements of the Project – all activities taking place within the boundaries of the Peterhead Power Station site. It considered various design and construction options, set out the methodologies selected and why, and presented the potential impacts associated with all activities and the proposed management and mitigation measures to be employed to minimise these impacts.
The outputs of this study work, the Onshore ES, has now been submitted to Aberdeenshire Council, as part of the Project’s overall Planning Application. The Onshore ES is now available for the public to view as part of the 28-day public consultation period. The document can be downloaded below and is also available for review at the following locations:
- Shell UK Office, 1 Altens Farm Road, Nigg, Aberdeen, AB12 3FY, United Kingdom
- Boddam Library, 26 Queens Road, Boddam, Peterhead, AB42 3AX
- The Hot Spot, 1-3 Kirk Street, Peterhead, AB42 1LA
- Arbuthnot House, Broad Street, Peterhead, AB42 1DA
- Maud Area Office, Nethermuir Road, Maud, AB42 4ND
Members of the public have to make comments on the application. Comments on the statement may be sent by email, letter or fax and should be marked for the attention of:
Ms Victoria Moore
Planning Officer, Strategic Development Delivery Team
Local Planning Office, Aberdeenshire Council