According to the ministry, the plant would be the first industrial-scale project in the world to combine three separate technologies – hydrogen production, power generation and carbon capture and storage – to generate electricity using hydrogen from natural gas.
The hydrogen would be used to generate low carbon electricity, with the residual carbon dioxide then compressed and pumped back 4,000m below the seabed of the North Sea, to recover oil from the Miller oil field.
The ministry said that the use of carbon capture technology at the plant would facilitate enhanced oil recovery, which it is hoped would extend the life of the field by up to 20 years, allowing an estimated 57 million barrels of oil, which is not currently recoverable, to be produced.
The application was originally lodged by UK oil giant BP, and the Scottish Executive said that, although BP has since abandoned the project, ministers had decided to consider the plans so that, should BP’s reasons for not pursuing the venture be resolved, the firm would know that the Peterhead plant is permitted under the electricity act.
According to the Scottish Executive, BP was forced to discontinue its plans as a result of the UK Department of Trade and Industry’s delays over moving forward with the application. However, Scotland’s energy minister, Jim Mather, did say that he believes BP will reconsider the venture.
Mr Mather also commented: Carbon capture technology has the potential to transform the way we generate power. In significantly reducing carbon emissions, this project could become an icon for clean energy production throughout the world.