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Keadby 3 Carbon Capture Power Station not taken to next stage of Cluster Sequencing Process 

30 Mar 2023

SSE Thermal and Equinor can confirm that its Keadby 3 Carbon Capture Power Station in North Lincolnshire has not been taken forward to the final stage of the UK Government’s Cluster Sequencing Process. We expect it will now have further opportunities in the planned Track 1 expansion process.

The proposed power station at Keadby – which would have a generating capacity of up to 910MW - could have been operational by 2027 assuming a supportive policy environment and a positive Final Investment Decision.

In December 2022, Keadby 3 became the first power CCS project in the UK to receive planning permission. The plant is designed to connect to the shared CO2 pipelines being developed through the East Coast Cluster, allowing emissions to be captured and transported before being safely stored under the Southern North Sea. The Humber is the UK’s most carbon-intensive region and remains a key strategic location for decarbonisation.

Catherine Raw, Managing Director of SSE Thermal, said:

“As the UK’s most carbon-intensive cluster, the Humber remains a key strategic location for decarbonisation. While our Keadby 3 project hasn’t progressed at this stage, we remain committed and the reality is that the UK will need multiple power CCS projects – in the region of 7-9GW – if we’re to successfully decarbonise.

“The Government must now be bold and focus on increasing pace of delivery and expanding access to the CO2 infrastructure. Crucially, businesses need further clarity on the Track 1 expansion process which will be crucial to decarbonising the Humber. It is, however, encouraging to see Track 2 launched today on an expedited timeline – this will be essential for the Scottish Cluster where our Peterhead Carbon Capture project is located.”