Mr Salmond urged government support for the project

The Banff and Buchan MP described proposals for the �500m UK carbon capture power plant as "mind-blowing" in scale and potential.

During a short Commons debate, he urged ministers to support the project.

Scottish Secretary Douglas Alexander promised MPs that a decision would be made within months.

BP had said it was awaiting an announcement on whether the plan would get government support.

Delay 'indefensible'

The proposal would see the world's first industrial-scale hydrogen power scheme based in the Aberdeenshire town.

It would generate "carbon-free" electricity from hydrogen, reducing greenhouse gas emissions by capturing carbon dioxide and safely storing it.

Energy firms have teamed up to investigate the feasibility of the carbon capture and storage (CCS) scheme.

The plan has won praise from energy experts, environmental campaigners and politicians alike for pointing the way forward.

The plan for Peterhead could create 1,000 jobs

BP said the delay would knock the completion date for the scheme back by at least a year until after 2010.

About 1,000 jobs would be expected to be created if the project was ultimately given the go-ahead.

Mr Salmond said: "There is a powerful Scottish, European and global interest in giving the go-ahead to the Peterhead Project. It is crucial not only for Scotland, but is potentially planet saving technology.

"It's time for the government to give the go ahead to the Peterhead project, and not squander the near two-year world lead that we have in this revolutionary technology.

"Any further delay is indefensible."