
Scottish and Southern Energy (SSE) and Ayrshire Power have both applied for funding under a European scheme to develop carbon capture and storage (CCS) projects.
SSE's project, being carried out in conjunction with Shell and CO2 DeepStore, a subsidiary of Petrofac, will capture the carbon from one of the company's Peterhead gas turbines.
The CO2 will be transferred to St Fergus, where it will be further compressed, before travelling via underground pipeline to an expired oil field in the North Sea.
Ian Marchant, chief executive of SSE, said: "Given the work already undertaken, the project can proceed at a pace at least equal to other CCS projects in Europe."
It's thought the project can benefit from UK government funding, as well as that available under the European Union (EU) NER300 scheme.
Peel Energy Carbon Capture and Storage has also applied for funding under the EU programme, according to its sister company Ayrshire Power, for the CCS portion of its proposed biomass and gas power plant in Hunterston.
Muir Miller, project manager, said: "Subject to the necessary approvals, we could begin work soon after a successful funding award."
Announced in November last year, NER300 will fund eight CCS and 34 renewable energy projects.