UK awards £4.2m for CCS research at Grangemouth

Mar 27 2015


The UK and Scottish Governments have given £4.2 million in-principle funding to support Summit Power’s proposed CCS coal-gasification power station located in Grangemouth.

The funding, £1.7 million from Department of Energy and Climate Change (DECC) and £2.5 million from the Scottish Government, will allow Seattle-based Summit Power Group to undertake substantial industrial research and feasibility studies with the ultimate objective of designing, siting, financing, and building their proposed Caledonia Clean Energy Project.

A detailed programme of research and development work will now be undertaken over an 18 month period to advance the engineering design of the project. The findings of the industrial research feasibility work will be shared across industry and academia, increasing understanding of how to develop and deploy CCS at commercial scale.

For the first time, this large scale low-carbon power project aims to combine and integrate coal gasification, 570 MW power generation, and carbon capture technologies in a single facility. The proposed power station will be fitted with CCS technology designed to capture 90% of CO2 emissions which would then be transported via existing on-shore pipelines and existing sub-sea pipelines for permanent geological storage 2km beneath the North Sea. The funding is in principle and conditional upon agreeing the terms of the grant.

Luke Warren, Chief Executive of the CCSA, commented:

“This announcement highlights the importance which both Governments place in the potential role of CCS in delivering the UK’s future low carbon energy mix. The current Competition to develop the UK's first CCS projects – the White Rose project at the Drax site in Yorkshire and the Peterhead Gas CCS project in Scotland – is progressing with detailed engineering work and final investment decisions expected towards the end of this year. But if the UK is to deliver commercial CCS, then it is essential that the competition delivers two projects."

"The announcement today is positive news and a much needed signal from Government that it recognises the importance of supporting the next phase of CCS projects that will follow on from the two competition projects. Supporting a steady roll-out of projects will enable CCS to become cost-competitive with other low-carbon technologies in the 2020s."

Prof Stuart Haszeldine, director of Scottish Carbon Capture and Storage said:

"This is a really important step forward by UK and Scottish governments to support development of innovative low carbon projects at very large scale. During the past 10 years we have seen many projects fall away because of perceived government disinterest. This type of support is essential if the UK is to encourage a series of low-carbon power projects, to follow-on from Peterhead-Goldeneye in Scotland, and from White Rose in Yorkshire."

"This Grangemouth project can make important connections between protecting employment in the high-value chemical industry, stepping towards low carbon electricity and heat in the UK, and developing the emerging carbon dioxide storage industry which will use and enhance offshore skills and employment."

"It is important to realise that this is the start of a long trail. Even if these investigations are successful, the Grangemouth project will not be operational until 2021 at the earliest."

UK Government
Summit Power


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