SSE has welcomed a decision by the UK government to progress the proposed Keadby 3 Carbon Capture Power Station.

The landmark project in the Humber could become the UK's first power station equipped with carbon capture technology is being jointly developed by SSE Thermal and Equinor. It has been selected to be taken forward to the due diligence stage by the Department for Business, Energy and Industry Strategy (BEIS) as part of its Cluster Sequencing Process.

This process will give the project the opportunity to receive government support, allowing it to deploy cutting edge carbon capture technology, and to connect to the shared CO2 pipelines being developed through the East Coast Cluster, with its emissions safely stored under the Southern North Sea. The common infrastructure will also supply low-carbon hydrogen to potential users across the region.

The planned power station at Keadby – which would have a generating capacity of up to 910MW - could be operational by 2027 subject to reaching a final investment decision in 2023. It would capture up to one and a half million tonnes of CO2 a year, which represents at least five per cent of the UK Government's 2030 target, while providing low-carbon, flexible power to back-up renewable generation.


Equinor's H2H Saltend project, the 'kick-starter' for the wider Zero Carbon Humber ambition, has also been taken to the next stage of the process by BEIS. The planned hydrogen production facility could provide a hydrogen supply to Triton Power's Saltend Power Station as well as other local industrial users. In June, SSE Thermal and Equinor entered into an agreement to acquire the Triton Power portfolio.

The two companies are also collaborating on major hydrogen projects in the Humber. Keadby Hydrogen Power Station could be one of the world's first 100% hydrogen-fuelled power stations, while Aldbrough Hydrogen Storage could be one of the world's largest hydrogen storage facilities. In addition, they are developing Peterhead Carbon Capture Power Station in Aberdeenshire, which would be a major contributor to decarbonising the Scottish Cluster.

Catherine Raw, Managing Director Of SSE Thermal, said: "As we continue to scale up renewables across the UK, the need for flexible generation to keep the lights on and provide vital backup becomes ever more critical. Keadby 3 Carbon Capture Power Station can do exactly that and will be crucial in meeting our net zero ambitions."

Catherine added: "The Humber is the UK's most carbon intensive industrial cluster, and our proposed plant will not only help to decarbonise the region but will also ensure a just transition for workers and communities. We are delighted that BEIS has recognised the strength of our project, which is being developed alongside Equinor, and we look forward to engaging with them as we move closer to delivering on the promise of carbon capture.

"Ultimately, both carbon capture and hydrogen will be essential to the UK's decarbonisation journey, and momentum continues to build towards this low-carbon future with SSE leading the way through its ambitious Net Zero Acceleration Programme, which will see £24bn invested this decade alone."

The first phase of the Cluster Sequencing Process saw the UK Government announce the two 'Track 1' clusters which will be supported to develop carbon capture and storage infrastructure. The East Coast Cluster, which includes the Humber and Teesside regions, was named in 'Track 1'.

In the second phase, individual emitter projects within those clusters – including Keadby 3 Carbon Capture Power Station – submitted applications to be considered for government support. BEIS today announced the 20 projects across both clusters were selected to be taken forward to the due diligence stage.