No doubt you’ve heard and read a lot of information surrounding George Osborne’s Autumn statement and have begun to consider how it may affect you as an individual, whether that be in relation to buying a house or possible changes to your own salary and pension.
What is certainly of significance to those working within the energy industry is the announcement that the government has axed £1 billion originally ring-fenced for the Carbon Capture and Storage (CCS) Competition. This scheme looked to develop the technology within fossil burning power stations, however will not now be going forward.
Many believe this to be a disregard for not only the scheme itself but also the possibilities that it would bring with it, including the creation of new jobs and innovative processes with the main focus on cutting emissions.
“With investment of many billions needed to provide secure, affordable and low carbon solutions, financiers want to see a stable investment framework that is aligned to these objectives” – Hector Grant, Chief Executive, Scottish Energy Association.
The world’s first commercial scale, gas powered CCS plant was set to be built in Peterhead, had the competition gone ahead, however the UK government now seems to be much more focussed on nuclear power alone, to deliver our energy requirements, with much emphasis put on projects such as Hinkley Point. However as previously mentioned by SEA, the timescale for this project’s completion likely to be at least ten years while the costs to develop such a plant remain extremely high.
The decision, which was made as part of the UK’s spending review, has left both Shell and SSE, who had been working towards this final project at Peterhead, extremely disappointed, following years of planning and progress.