Samsung C&T has agreed to take a 15 per cent stake in a 650MW power plant in South Yorkshire designed to capture at least 90 per cent of its CO2 emissions.
2Co Energy’sDon Valley Power Project is expected to provide electricity to the equivalent of a million UK homes from the end of 2016.
According to 2Co Energy, it will use the captured CO2 to recover around 150 million barrels of North Sea oil before storing it in the oil fields. The oil produced is expected to generate billions of pounds of taxation revenue for the UK government and reduce the overall cost of CCS to the UK.
The deal will also see Samsung C&T take on the Engineering, Procurement and Construction (EPC) contract for the onshore power project in South Yorkshire.
In reaching this stage of the project, Samsung has been supported by AMEC. Total investment in the onshore power project is expected to be about £3bn.
Planning permission for the power plant has already been granted and 2Co Energy plans to start main construction in 2013 if its bid to win a further round of EU and UK funding is successful.