“Shell is disappointed at the withdrawal of funding for the CCS Commercialisation Competition, in which our Peterhead CCS project was one of the final contenders. We have worked tirelessly over the last two years to progress our plans for this project. It has the potential to bring huge value to the UK, both in terms of immediate emissions reductions and developing knowledge for the benefit of a wider industry.

Government funding to support this world-first demonstration project, through the competition, was important to achieving the aim of making the technology commercially viable in the shortest possible time. While we acknowledge that this decision has been made in the context of a difficult spending review, without that funding, we no longer see a future for the Peterhead project in the near term.

Shell remains committed to CCS – as our involvement in demonstration projects in other parts of the world shows – and view it as an important part of a low-carbon energy future.”
Shell will honour its remaining commitments under the Front End Engineering and Design (FEED) contract it entered into with the Government – as part of the competition – in February 2014, including the sharing of all key knowledge gathered during this phase.

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