US-based Summit Power Group has entered into an agreement with National Grid and Petrofac to seek funding for the development of a low-carbon power plant with carbon capture and storage at the Port of Grangemouth in Scotland.
The partnership will submit the project plan to the UK Department of Energy and Climate Change (DECC) for funding under the UK's carbon capture and storage (CCS) delivery competition.
The consortium expects financial assistance from the government, which plans to launch a $1.6bn tender for CCS projects.
The proposed coal feedstock plant, to be named the Caledonia Clean Energy Project, with 90% carbon capture, will generate low-carbon electric power and produce hydrogen gas for commercial use.
The carbon dioxide captured will be transported via pipeline to St. Fergus by National Grid Carbon and then transferred offshore for geological sequestration under the North Sea by Petrofac subsidiary, CO2DeepStore.
Summit Power is currently developing a similar project in the US - the Texas Clean Energy Project (TCEP) --and intends to replicate many aspects of TCEP at Grangemouth.