Keadby 3 Carbon Capture to generate over £1.2bn for UK economy
A proposed first-of-its-kind power station in the Humber could generate £1.2bn to the UK economy over its lifetime, according to a new report.
The ‘Powering the Next Generation’ report highlights the potential socio-economic benefits of Keadby 3 Carbon Capture Power Station, which is being developed by SSE Thermal and Equinor.
The proposed plant could become the UK’s power station equipped with a carbon capture plant to remove CO2 from its emissions and would connect into the East Coast Cluster’s CO2 transport and storage infrastructure, which underpins plans to deliver one of the UK’s first low-carbon industrial clusters.
Based on analysis from BiGGAR Economics, the report highlights the scale of the economic impact at a local, regional and national level. In total, it is estimated that £2.2bn will be invested throughout the development, construction and the first 25 years of its operational life.
That will create significant benefit, with the report showing that £70m is expected to be contributed to the local economy during development and construction, with 1,130 years of employment supported. Over the station’s operational lifetime, it is estimated that £28m will be added to the local economy each year, with around 250 jobs supported on an annual basis.
Looking at the wider region, defined as Yorkshire, the Humber and East Midlands, the analysis shows that £120m would be added to regional economy during development and construction, with 1,930 years of employment supported. In the lifetime of the station, £34m would be added to the regional economy annually with 320 further jobs supported each year.
Finally, at a national level, the report estimates that £470m would be added to the UK economy through development and construction, as well as 7,300 years of employment. On an annual basis once operational, the plant would contribute £53m to the UK economy and support 560 jobs.
Catherine Raw, Managing Director for SSE Thermal, said: “The Humber is the UK’s most carbon intensive industrial cluster and there is a clear and present need to reduce emissions. Our proposed Keadby 3 Carbon Capture Power Station would play a huge role in those decarbonisation efforts, providing flexible power to keep the lights on while backing up renewables. However, its benefits stretch much further. As this report illustrates, it will also secure low-carbon jobs for workers in the region and create significant socio-economic opportunities.
“We have a long-standing history in the Keadby area, and a steadfast commitment to ensuring our investment makes a difference, whether through job creation, supporting the local supply chain or championing local causes. Our plans for Keadby 3 will allow us to build on that track record, stimulating economic benefits while helping to decarbonise the region.”
Grete Tveit, Senior Vice President for Low Carbon Solutions at Equinor, said: “The Humber is a major industrial heartland, and we are delighted to be working with SSE Thermal on proposed Keadby 3 Carbon Capture Power Station. This important project will ensure flexible and efficient power to support intermittent renewable generation and maintain security of supply.
“Creating more new socio-economic opportunities and lasting value for local communities is at the heart of our ambitious plans to develop a CCS and hydrogen economy in the Humber, including production, usage and storage. By continuing working closely with local communities, businesses, and academia, together we will bring the Humber region closer to net zero. This will also deliver huge benefits for the local supply chain and economy, preserving existing jobs and creating new high quality jobs of the future.”
In 2020, SSE became the first company to publish a Just Transition Strategy, which outlined how the company will approach the social implications of delivering net zero; from jobs and training, to working with communities and ensuring no one is left behind. In February of this year, it set four core business goals to 2030, which included a goal to champion a fair and just energy transition by guaranteeing fair work, committing to paying fair tax, and sharing economic value.
SSE operates Keadby 1 Power Station and is currently in the commissioning phase for Keadby 2 Power Station which will be the most efficient gas-fired power station when completed later this year.
In addition, SSE Thermal and Equinor are also working in collaboration on two further projects in the Humber. Keadby Hydrogen would be the world’s first 100% hydrogen-fuelled power station while Aldbrough Hydrogen Storage, located in East Yorkshire, would be one of the world's largest hydrogen storage facilities. The two companies are also developing Peterhead Carbon Capture Power Station, situated on the Aberdeenshire coast in Scotland.
For media enquiries, please contact:
- Nick Hanlon
SSE Thermal’s Communications Manager
- Alice Baxter
Equinor Spokesperson UK