New carbon capture project could give UK economy £1.2bn boost

SSE Thermal and Equinor are working together on the Peterhead power station

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SSE Thermal and Equinor are developing a power station with carbon capture technology in Peterhead, which could bring £1.2 billion to the UK economy in its lifetime.

That’s according to a new report by BiGGAR Economics that delves into the social and economic benefits that this facility will bring.

The analysis shows that the project is expected to provide the Aberdeen economy with £60 million alone, then £25 million every year it is operational after that, supporting 240 jobs.

Around £475 million would be added to the UK economy through development and construction, with £50 million each year and the support of 560 jobs.

Projected to be one of the country’s first power stations that is equipped with carbon capture, the facility would transport carbon into Scotland’s cluster and help underpin the net zero transition.

Michael Matheson, Net Zero and Energy Secretary, said: “Carbon capture, utilisation and storage is critical for meeting, not only Scotland’s statutory emissions reduction targets, but those set across the UK.

“The innovative Peterhead Power Station is a fantastic example of how Scotland’s energy sector can make the transition to net zero and – as this study demonstrates – benefit the Scottish economy, providing employment and a just transition for our workforces.”

“While we await clarity from the UK government on the timeline for deployment of the Scottish cluster, we are pushing ahead with our development plans and in March we submitted a planning application for the new low carbon plant – which, as this new report shows, has the potential to be a game-changer for the region and for Scotland,” SSE Thermal’s Catherine Raw added.