one of the world’s biggest firms has signed up to jointly develop the groundbreaking carbon capture and storage scheme based in Doncaster.
Samsung yesterday agreed a deal in South Korea to take a 15 per cent stake in 2Co Energy’s 650 megawatt Don Valley Power Project at Stainforth, which is also bidding for UK and European funding.
The Don Valley Power Project is expected to create thousands of UK jobs, boost national energy security, and supply low carbon electricity to one million UK homes from the end of 2016.
It will capture at least 90 per cent of its CO2 emissions which will then be used to recover around 150 million barrels of ‘hard to reach’ North Sea oil before safely and permanently storing it in the oil fields.
The oil produced will generate billions of pounds of tax revenue for the Government and significantly reduce the overall cost of CCS to the UK.
The deal will also see Samsung Construction & Trading take on the £3 billion engineering, procurement and construction contract for the onshore power project in Doncaster.
Planning permission for the Stainforth 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.
Lewis Gillies, chief executive of 2Co Energy, said after signing the deal: “Samsung’s landmark investment is a major vote of confidence in the UK’s potential to lead the world in carbon capture and storage technology.
“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.”
Yeon-Joo Jung, chief executive of Samsung C&T, said: “The Don Valley Power Project is defining the future of low carbon energy generation in the UK and we are delighted to be part of the project.
“Samsung C&T will work with 2Co Energy in the UK to create an international hub of knowledge and expertise in a vital new technology the rest of the world is looking to pioneer.”