Environmental campaigners have hailed Peterhead as the front-runner for a £1 billion flagship clean energy fund, after two major energy giants announced they would collaborate on the project.
It follows public outcry last month when UK ministers pulled funding for a carbon capture and storage (CCS) project at Longannet, in Fife.
At the time Energy Secretary Chris Huhne insisted that UK ministers would still provide up to £1bn for the development of CCS technology.
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