London—Dentons advised the Department of Energy and Climate Change on its funding of a FEED Contract which Energy and Climate Change Secretary Edward Davey announced today has been awarded to Shell U.K. Limited in relation to the Peterhead 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. CCS allows the safe removal and permanent storage of carbon dioxide emissions from coal and gas power stations, as well as from industrial processes.

Peterhead is the second project to be allocated funds under the Government's £1 billion 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 EU's largest commercially sized projects.

£1 billion has been committed to the Programme, with around £100 million of that funding being invested now to support the detailed planning and engineering of these 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.

Christopher McGee-Osborne, Partner and co-chair of Dentons' Global Energy practice, said: "This is a further major step towards establishing a CCS industry in the UK and so the UK achieving its climate change targets. We are delighted that our commitment to being at the cutting edge of energy legal practice has enabled us to support the Government in this ground-breaking implementation of its energy policy."

The Dentons team is led by Christopher McGee-Osborne and includes partners Catherine Bingham and Lucille de Silva, supported by associates Martin Watt, Zara Skelton, Mark Bassett, Peter Shaw and James Lansdell.

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