The Korean giant, Samsung Construction & Trading has taken a 15% stake in a carbon capture and storage (CCS) project in South Yorkshire.
Samsung has taken a 15% stake in 2Co Energy’s CCS Don Valley power plant project in South Yorkshire. This is the second investment the company has made in UK energy projects this year after it announced a £100m wind turbine plant in Fife.
There’s been concern that the UK’s energy security will be at risk from the closure of coal fired power stations. Utility Exchange reported recently that E.ON was set to close its Kingsnorth Power Station next year. At the same time, countries around the world are moving towards gas as their chosen form of energy generation which is pushing up wholesale gas prices and consequently increasing business gas prices.
The £4.5bn CCS project will capture 90% of the emissions from a 650MW coal fired power station. 2Co says the captured gases will be piped to the North Sea where it will be used to recover an estimated 150 million barrels of oil which is currently difficult to reach.
The news comes soon after E.ON announced it would not continue with its CCS project. As reported by Utility Exchange, E.ON said it was because the market was not suitable for such an investment.
However, the difference with this project and the E.ON project is the possibility of extracting oil. Recovering oil using the gas emissions will help to lower the cost of CCS.
The deal means that Samsung will take on the engineering, procurement and construction contract for the onshore part of the project. If 2Co wins Government funding through its carbon capture competition then work could begin on the project next year and should be completed by 2016.
The chief executive of 2Co, Lewis Gillies said in a statement that the deal with Samsung was a “major vote of confidence in the UK’s potential”.
He added “The Don Valley Power Project is the largest and most cost-effective CCS project in Europe and Samsung’s capability, strength and scale now make it Europe’s most deliverable CCS project as well. The regional infrastructure created by the project will help the UK lead a clean industrial revolution that keeps the lights on and boosts jobs, green growth and innovation”.