POWERING PROGRESS Exploring the socio-economic impacts of Keadby 2 Power Station October 2020 About this report In addition to its role in generating flexible and efficient power, the Keadby 2 project is delivering significant socio-economic benefits in the local area and across the UK. From construction jobs, to support for the local supply chain, to charity donations, SSE Thermal and Siemens Energy are working with local people and organisations to ensure an enduring positive legacy from the project. This report looks at some of the socio-economic benefits that have been generated by the investment in Keadby 2, with economic contribution analysis undertaken by BiGGAR Economics. About SSE Thermal About Siemens Energy SSE Thermal, part of the FTSE-listed SSE plc, is a Siemens Energy is one of the world’s leading energy CONTENTS leading developer, owner and operator of electricity technology companies. The company works with generation and energy storage assets. Its portfolio its customers and partners on energy systems for includes five of the most flexible and efficient the future, thus supporting the transition to a more gas-fired power stations across the UK and Ireland. sustainable world. With its portfolio of products, 03 Foreword solutions and services, Siemens Energy covers almost The business has a strategy to create value for the entire energy value chain – from power generation 04 Transition to net zero: the role of gas shareholders and society by developing, owning and transmission to storage. 05 Introducing Keadby 2 and operating low-carbon energy infrastructure in a sustainable way. Its vision is to become the leading The portfolio includes conventional and renewable 06 Investing locally and across the UK provider of flexible thermal energy in a net-zero world. energy technology, such as gas and steam turbines, As part of this ambition, it has a core focus on further generators and transformers, together with a portfolio 08 Contributing to local, regional and national economies decarbonising its energy generation through emerging to address the energy transition such as eletrolysers, carbon capture and hydrogen solutions. hydrogen-capable turbines and ‘Power-to-X’ 10 Supporting local supply chains technologies. More than 50% of the portfolio has 14 Looking after people on site SSE plc employs 12,000 people directly across the UK already been decarbonised. A majority stake in the and Ireland and is proud to be a real Living Wage and listed company Siemens Gamesa Renewable Energy 16 Keadby 2 in the community Fair Tax Mark accredited company. (SGRE) makes Siemens Energy a global market leader for renewable energies. An estimated one-sixth of the electricity generated worldwide is based on technologies from Siemens Energy. Siemens Energy employs 91,000 people worldwide in more than 90 countries and generated revenue of around €29 billion in fiscal year 2019. Siemens Energy is a registered trademark licensed by Siemens AG. Exploring the socio-economic impacts of Keadby 2 Power Station SSE Thermal and Siemens Energy 01 FOREWORD At SSE Thermal and Siemens Energy, we share a commitment to supporting the UK’s transition to a more sustainable energy system in a way that delivers a positive lasting legacy for the communities in which we live and work. The Keadby 2 project brings to progress the project safely together SSE Thermal’s ambition and efficiently, while minimising to provide flexible and reliable disruption to the local area. We take energy in a net-zero world with our responsibilities seriously and we Siemens Energy’s ground-breaking want to continue to build on our gas turbine technology. As project strong relationship with the local partners, we set out to create the community to ensure the project cleanest and most efficient power delivers benefits that endure long station on the electricity grid. into the future. With unparalleled efficiency, Through cutting edge infrastructure Keadby 2 will help the UK to move projects like Keadby 2, we believe away from older, more carbon North Lincolnshire, and the wider intensive generation in the decades Humber region, can lead the way ahead. With the ability to reach in the transition to a cleaner energy full power in just 30 minutes, it future and help rejuvenate our will also provide vital flexibility economy in the process. to complement the increasing amount of renewable energy on We hope you find this report the system and maintain security valuable in demonstrating the of supply. socio-economic impacts of the Keadby 2 project. We look forward However, as responsible to completing the construction and developers, we are acutely aware continuing to deliver significant that the impact of a project of socio-economic benefits through this scale goes far beyond its role the delivery of this world class in power generation. From the energy generation asset. outset, we wanted to deliver a project that was best-in-class for Stephen Wheeler local engagement and community Managing impact. We are committed to Director, ensuring our investment in Keadby SSE Thermal 2 is felt within our neighboring communities, from creating high-quality jobs, supporting the regional supply chain, to providing Steve Scrimshaw donations to local charities. Vice President Siemens Energy We are proud of the efforts of UK&I our team, particularly through the coronavirus pandemic, to continue 02 Exploring the socio-economic impacts of Keadby 2 Power Station SSE Thermal and Siemens Energy 03 TRANSITION TO NET ZERO: INTRODUCING THE ROLE OF GAS KEADBY 2 The role of gas-fired generation will evolve as the energy system The UK’s most-efficient gas-fired decarbonises, but gas will still play a crucial role. As the volume of renewable power station generation on the system increases, other forms of generation will be required to respond to market changes and ensure security of supply. Keadby 2 is a new 893MW2 expected to become the cleanest gas-fired power station in North and most-efficient gas-fired power Providing flexible and models for carbon capture and Lincolnshire owned by SSE Thermal station in Europe. The power of and being constructed by Siemens the new Siemens Energy HL-class efficient power storage and hydrogen are welcome Energy, who will also provide turbine equals that of 1,400 developments. Analysis from National Grid long-term maintenance for the Porsche 911 Turbos. Just 21 of the What is carbon capture facility once operational. machines would roughly match the and the Committee on Climate and storage? power of a space shuttle at take-off Change shows a clear role for The project is located close to the Carbon capture and storage (CCS) - true rocket science! carbon-abated gas in all scenarios village of Keadby near Scunthorpe. 1 is a technology that can capture they describe. Fundamentally, Construction of the project began Keadby 2 will also be capable at least 90% of the carbon dioxide this role is to support the mass in 2018 and is expected to be of being upgraded to further emissions produced from the expansion of renewable energy in completed in 2022. The site is decarbonise its generation through use of fossil fuels in electricity the UK by providing: located adjacent to the existing carbon capture or hydrogen generation and industrial processes, Keadby 1 Power Station, which technology, as routes to • a flexible and efficient energy preventing the carbon dioxide from Keadby 2 brings entered full commercial operation market develop. source when renewable energy entering the atmosphere. in 1996. first-of-a-kind, output is low; The CCS chain consists of three • system stability services to Keadby 2 brings first-of-a-kind, high-efficiency gas parts; capturing the carbon dioxide, support grid with high high-efficiency gas turbine transporting the carbon dioxide, turbine technology penetration of renewables; and, technology to the UK, and is and securely storing the carbon to the UK • improved system diversity and dioxide emissions underground, in security of supply. depleted oil and gas fields or deep saline aquifer formations. As we progress through the 2030s and 2040s, gas-fired What is hydrogen-fired generation will become a low generation? carbon electricity source in its Hydrogen can replace natural own right whilst providing a gas as the fuel for flexible thermal crucial role by supporting an power stations. As an energy vector electricity system underpinned that does not contain carbon, there with very large volumes are no carbon dioxide emissions at of renewable electricity, point of use. Instead, when burnt predominately from with oxygen, the by-product is offshore wind. water. This starts with highly efficient gas- Both ‘blue’ and ‘green’ hydrogen fired generation, like Keadby 2, but can be used to generate low- there’s an imperative for the next 1. National Grid Future Energy Scenarios 2020, carbon electricity. Blue hydrogen Committee on Climate Change’s Net Zero projects to move to decarbonised is produced from natural gas with Technical Report, SSE Transition to Net Zero: technologies like post-combustion the role of gas. the resultant carbon emissions carbon capture and storage or captured and stored at this point. 2. Keadby 2 will have a Transmission Entry using hydrogen as a fuel. For this to Green hydrogen is created through Capacity of 893MW – the maximum amount of power it will be able to put on the system happen, routes to market need to the electrolysis of water. This at any one time. The turbine, manufactured by become available and government process uses renewable electricity Siemens Energy Ltd., is guaranteed to provide a minimum of 830MW power. commitment to develop business and is therefore carbon-free. 04 Exploring the socio-economic impacts of Keadby 2 Power Station SSE Thermal and Siemens Energy 05 INVESTING LOCALLY AND ACROSS THE UK Keadby 2 is one of the largest infrastructure projects to be built in the North Lincolnshire region.