The agreement for lease (AfL) for the proposed Peterhead CCS Project has been signed with the Crown Estate which agreed to lease an area at the offshore depleted Goldeneye gas field.

The storage project aims to develop a post-combustion CCS facility which will be capable of capturing CO2 from the 385MW gas-fired Peterhead power plant.

The CO2 would then be pumped to the Goldeneye gas field in the North Sea, 65 miles from St Fergus.

Peterhead project is seeking funding under the UK Government’s £1bn commercialisation programme for carbon capture and storage (CCS).

As part of this program, in early 2012, it began a process for project developers to apply for AfL over potential storage sites, where the lease agreements provide time-limited options that enables progressing CCS projects through to FID.

The Crown Estate, which owns the storage rights on the UK continental shelf, said it has received several requests for options over site, of which seven were the subject of public notices.

It hopes to announce more such awards from summer 2012 onwards.