Green Project Tops the Agenda at Aberdeen’s Offshore Europe Conference Salmond Rev Ives Plan for Carbon Capture Plant

By GRAEME SMITH

FIRST MinisterAlex Salmond is hopeful there may yet be a carbon capture plant at Peterhead, despite BP pulling out of its GBP500m plan involving the Miller Field.

Speaking at Offshore Europe in Aberdeen, he revealed European Energy CommissionerAndris Piebalgs had arranged a meeting later this month with key companies across Europe, including BP, Shell and Scottish & Southern Energy, to inform the shape of the European Union’s financial framework.

Salmond said that framework could transform the economics of projects such as Peterhead and allow Scotland and Europe the opportunity to establish a world-leading position in this “planet- saving technology”.

The meeting follows discussions Salmond had with the commissioner over the summer to press for urgent EU action.

About 1000 jobs were expected to be created if the green project, which would have seen the world’s first industrial-scale hydrogen power scheme based in the Aberdeenshire town, had been given the go- ahead.

At present, the carbon dioxide from burning gas piped in to Peterhead power station goes into the atmosphere.

Under the proposals, a new part would have been added to the power station to separate the gas into hydrogen H2 and carbon dioxide. The carbon dioxide would then have been sent offshore through the Miller pipeline to the Miller field which is near the end of its normal life but, like many fields, has more than 30per cent of its oil unrecovered.

The carbon dioxide would have made the remaining oil easier to produce, therefore helping pay for the operation.

The plans won praise from energy experts, environmentalists and politicians but government delays over deciding whether it would support the project prompted BP to abandon it. The company said the life of the Miller oil field central to the project had already been extended as long as possible and would not be available for the length of time needed.

Salmond said: “Carbon capture is a hugely important development for the future of oil and gas. It is an example of how Westminster indecision and delay is costing Scotland extremely dear. Through talks with the European Commission we are trying to get the process rolling again and take advantage of this superb location and opportunity to get into this new technology which is world beating and potentially planet saving.

“That is exactly the sort of proactive role the people expect the government of Scotland to have in the oil and gas industry.

“I am certain that Peterhead and the Miller pipeline are such great assets for carbon capture that at some point they are going to be developed. The Miller project has fallen victim to delays and indecision at Westminster but that still means there could be a carbon capture project based round that perhaps from other oilfields.

The enthusiasm of the European commissioner to have a meeting with the key players to try to push that agenda forward is extremely good news for the industry, extremely good news for Europe and very good news for Scotland.

“The Miller pipeline is a hugely valuable asset worth hundreds of millions of pounds because it is a hi-spec pipeline originally built for sour gas, it is ideal for carbon dioxide. The timetable for decommissioning in terms of the Miller platform looks very very tight. We are close to the point of no return – a matter of weeks or months away – but of course there are other fields which are depleted in that general area.”

The importance of carbon capture and storage and the need for action was reinforced by Jonathon Porritt, environmental writer, broadcaster and founder of Forum for the Future.

He warned: “This industry is going to have to get a great deal more serious about CCS. We have had a lot of talk for many years but the actual amount of delivered value of new technology, new thinking and new investment which practically everyone now agrees is fundamental is pathetic.”

Salmond dismissed a warning by Scotland Officer Minister David Cairns in a speech at the conference that the UK government had no intention of devolving responsibility for oil and gas to Holyrood.

He said the SNP was introducing “needless uncertainty” into the industry.

“The trouble with David Cairns is he takes a very negative view of things, ” said Salmond.

Originally published by Newsquest Media Group.

(c) 2007 Herald, The; Glasgow (UK). Provided by ProQuest Information and Learning. All rights Reserved.