Wednesday 22 April 2009

CAUTIOUS WELCOME FOR UK CARBON CAPTURE INCENTIVE ANNOUNCEMENT.

CAUTIOUS WELCOME FOR UK CARBON CAPTURE INCENTIVE ANNOUNCEMENT.

UK GOVERNMENT SENDING CONFLICTING SIGNAL.

SNP Westminster Energy spokesperson, Mike Weir MP, has welcomed the Budget announcement of a carbon capture and storage incentive scheme, but called for clarity on the proposals highlighting a previous Treasury failure to back the Peterhead CCS project.


Mr Weir said:

“Building a greener future is central to our success and the promise of carbon capture and storage incentives is welcome, but we have been here before.

“Carbon capture technology could have been up and running already if the Treasury had not torpedoed the Peterhead plan two years ago. Instead we got a review and a competition which has yet to be decided. Urgent investment is needed now to ensure CCS is up and running.

“The Peterhead project would have been the world's first pre-combustion carbon capture plant, but because of Downing Street dithering the project went to Abu Dhabi instead.

“The Scottish Government is showing that we have what it takes to become the pre-eminent location for clean energy research, development and delivery in Europe, but the UK Government needs to stop dragging its heels.”

Mr Weir also expressed concern that the UK government was sending mixed signals on CCS. Mr Weir added:

“Only this morning at the Energy and Climate Change Select Committee, Scottish Power and SSE raised concerns about proposals from Ofgem and National Grid to change the system of balancing charges on the interconnector which would increase Scottish generators costs by £50 million.

“Such a change would seriously imperil the development of Carbon Capture and Storage in Scotland which is crazy given the potential of the plant at Longannet and the use of depleted oil fields off our coast.

“The UK government must get a grip and provide a clear vision for the future of CCS.”

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