Shell and Scottish and Southern Energy have announced that they will join forces to work on developing Carbon Capture and Storage Technology (CCS) at Peterhead.
The UK Government has set aside £1 billion to make sure CCS is part of our long term carbon reduction strategy.
Commenting on the news, Scottish Liberal Democrat Energy spokesperson Liam McArthur MSP said:
"I am pleased that Shell and Scottish and Southern Energy are looking at developing Carbon Capture and Storage Technology at Peterhead, especially after the disappointment of Longannet.
"These proposals show that the ambition to develop this type of technology in Scotland is very much alive and kicking.
"It is vital that this project is able to rely on the broadest possible support within Scotland. I hope, therefore, that Scottish Ministers will work constructively with the consortium, UK counterparts and the wide range of supporters of this initiative to maximise its chances of success."