Dentons advises government on funding of a FEED contract for the Peterhead CCS project

Dentons has advised the UK Department of Energy & Climate Change on its funding of a front-end engineering design (FEED) contract that has been awarded to Shell UK in relation to the Peterhead carbon capture and storage (CCS) project, based at the Peterhead power station.

The multi-million-pound FEED study funding will support the Peterhead project, which will be the world’s first CCS project on a gas-fired power station.

Peterhead is the second project to be allocated funds under the government’s £1bn CCS Commercialisation Programme. Dentons has advised on both. The first was the White Rose CCS project for which funding was announced in December 2013. The Peterhead and White Rose CCS projects are the European Union’s largest commercially sized projects.

A total of £1bn has been committed to the programme, with around £100m of that funding being invested to support the detailed planning and engineering of the two projects. In late 2015, the projects will take final investment decisions, with the government taking decisions shortly after on investing the remainder of the £1bn funding to support construction of up to two projects.