Oil services company Wood Group Kenny said Thursday it secured an engineering contract to help develop a Scottish carbon capture and storage facility.

"We are leading the way in Europe in developing this innovative low-carbon technology," British Business Minister Matthew Hancock said in a statement.

Wood Group Kenny was selected to lead front-end engineering design for a subsea pipeline for the Peterhead CCS facility off the Scottish coast. The project is the first of its kind in the world to utilize CCS in association with a gas-fired power station.

British and industry leaders tout Peterhead as a transformative part of the government's effort to collect emitted carbon dioxide from the power and industrial sectors.

The International Energy Agency said last year CCS is a "necessary addition" to other low-carbon energy technologies meant to drive down global greenhouse gas emissions.

The British government in August said it could be a world leader in commercial CCS development, boasting of close to $1.7 billion in program investments.

"Wood Group Kenny is well placed to deliver high-quality, cost-effective solutions that will help achieve the targets of the U.K. government," regional director Bob MacDonald said in a statement.