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Recent news that Summit Power has signed the engineering, procurement and construction (EPC) contract for its Texas Clean Energy Project (TCEP) in the US provides a timely boost for those hoping for the development of a Carbon Capture and Storage (CCS) industry in Scotland.

Summit Power, the developers behind the Caledonia Clean Energy Project at Grangemouth, secured around $450 million from the US Office of Fossil Energy towards the Texan project. This latest project milestone is highly significant for CCS in Scotland as TCEP is the precursor of the Grangemouth initiative.

The Caledonia project, which would see the construction of a full-chain 570 MW coal-gasification power station with CCS, has already received £4.2m of funding support from Scottish and UK governments to undertake preliminary research and design work.

Stephen Kerr, Project Director, Caledonia Clean Energy Project, said:

The signing of the Caledonia EPC is especially significant since it occurs during the final days of the 2015 United Nations Climate Change Conference in Paris, where the US and China are leading efforts to reduce greenhouse gas emissions worldwide. From a UK perspective this announcement is also important, demonstrating that a pathway exists to developing cost-competitive low carbon energy generation with CO₂ capture and storage.

Prof Stuart Haszeldine, SCCS Director, said:

This is a major step towards the construction of the Texas Clean Energy Project, which will bring knock-on benefits for Summit’s other large-scale CCS initiative, the Caledonia project in Grangemouth. Enabling the construction of the Texan scheme will bring important learning and cost reductions for Caledonia as well as greatly de-risking the Scottish project.”

The signing of the EPC means that firm contracts have been agreed, moving the project a step closer to starting construction in 2016. TCEP will capture more than 90 percent of its CO2 emissions from coal while producing 400MW of clean power. The captured CO2 will be permanently sequestered geologically in West Texas oilfields.

Download Summit Power press release

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