SSE Thermal and Equinor have unveiled plans to jointly develop a new low-carbon power station at Peterhead.

Peterhead CCS Power Station is planned to be a new 900MW gas-fired power station fitted with carbon capture technology to remove carbon dioxide (CO2) from its emissions. By capturing up to 1.5 million tonnes (MT) of CO2 each year, the new station alone would achieve 15% of the UK Government’s target to capture 10MT of CO2 annually by 2030.

As Scotland's only major thermal power station, SSE Thermal's existing Peterhead Power Station provides critical flexibility to the electricity system, supporting increased penetration from renewable generation while maintaining security of supply. Peterhead CCS Power Station, as a new decarbonised power station at the site, would continue to provide this essential flexible and efficient power in a net zero world.

Situated on Scotland's east coast, the Peterhead site in Aberdeenshire is ideally placed for carbon capture technology, with access to essential CO2 transport and storage infrastructure being developed through the well-advanced Acorn Project. The Acorn CO2 Storage Site, which will be used by the Acorn Project to safely store CO2, is located about 100km offshore in rock formations deep below the North Sea. Peterhead CCS Power Station and the Acorn Project both won funding from the UK Government’s £171 million pot for the Industrial Decarbonisation Challenge Fund in March, as part of Scotland’s Net Zero Infrastructure programme.


Given the readiness of carbon capture technology in power generation, projects like Peterhead would stimulate the development of CO2 transport and storage infrastructure across Scotland, into which other energy and industrial emitters can then connect to capture and store their emissions. This will accelerate Scotland’s transition to a net zero economy, while safeguarding vital Scottish industries and ensuring a just transition for workers and communities.

The Peterhead CCS Power Station project is in the development stage and final investment decisions will depend on the progress of the necessary business models and associated infrastructure. With the appropriate policy mechanisms in place, the new station could come online by 2026, in line with Government ambitions for ‘Track 1’ industrial cluster projects and the proposed timelines for the Acorn CO2 transport and storage project.

Energy Minister and the UK's International Champion on Adaptation and Resilience for COP26, Anne-Marie Trevelyan said: "Carbon capture storage technology is one of the most exciting and innovative ways that we’re looking to tackle climate change, and this announcement marks a significant step towards a greener, more sustainable future for Scotland and the whole UK. Once up and running, CO2 emissions saved through this station alone will be the equivalent of taking 60 million cars off the road every year. Developing and applying this technology in Scotland will be a key element in the energy transition whilst creating a skills base and jobs on the ground that will endure and grow for decades to come. The UK Government has set out plans to work hand in hand with industrial areas and businesses to ensure they have the skills needed to lead the way."