The project was originally slated to come up at Peterhead in Aberdeenshire, Scotland. The Scotsman noted that BP withdrew its investment in the project in May 2007 over government funding delays. The GBP1 billion project will be built in the emirate of Abu Dhabi and it will reportedly create carbon-free electricity from hydrogen.

An agreement has been reached by Hydrogen Energy, a joint venture involving BP Alternative Energy, mining firm Rio Tinto and Masdar, regarding the carbon-capture project in the UAE, according to The Scotsman.

The loss of the project to the Gulf nation has received criticism from some quarters of the Scottish political circles.

Stewart Hosie, the Scottish National Party’s Treasury spokesman as quoted by the Scotsman, said: Instead of supporting a project to develop potentially planet-saving technology in Scotland, the UK government is prepared to squander vast resources on nuclear power, which the government’s own figures show will have a negligible impact on carbon abatement.