Peterhead and Drax named preferred £1bn carbon bidders 20 March 2013 Last updated at 14:54 Peterhead and Drax have been named as the two preferred bidders in its £1bn competition to encourage the development of carbon capture and storage technology. The UK government selected the gas-fired power station at Peterhead in Aberdeenshire and the coal-fired power station at Drax in North Yorkshire. Energy Secretary Ed Davey said it was a "significant step." He explained: "We had four excellent bids." Grangemouth and the Teesside Low Carbon Project were the other two.