Acorn project carbon capture scheme 'best placed' for UK backing

The St Fergus gas terminal in Aberdeenshire would receive waste CO2

A carbon capture and storage scheme for Scotland's heavily polluting industries is "best placed" to finally receive UK government backing.

The Acorn project at St Fergus in Aberdeenshire would take greenhouse gas emissions and store it in depleted gas reservoirs under the North Sea.

The UK government has announced a second round of support with the winning schemes operational from 2030.

It says it considers the Acorn scheme to be one of the "leading contenders".

Developers Storegga said it stands ready to step up as soon ask the government asks.

The project missed out on support in 2021, which instead went to two areas in the north of England.

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It was made a "reserve cluster" to be called upon if either of the preferred projects failed.

The announcement has been made as part of the UK government's "Energy Security Day" involving dozens of policies.

If it is given the go-ahead, waste CO2 will be piped from central Scotland to St Fergus using redundant pipelines which previously carried natural gas south.

Experts say the technology is vital for Scotland to meet its climate targets.

Sites which are signed up include the refineries at Mossmoran and Grangemouth as well as a new power station at Peterhead.

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Energy security minister Graham Stuart said: "Scotland will be at the heart of our plans to power up Britain, as we support its development of new home-grown technologies of the future.

"Today's announcement will create opportunities for Scottish businesses to export their expertise around the world and set the standard for a clean, secure and prosperous future."

Storegga, which is behind the Acorn Project, said it welcomed the recognition of its readiness to enter at the next phase.

It is working with companies like SSE, Ineos and ExxonMobil and said the backing would bring much needed investor confidence.

CEO Nick Cooper said: "We support the government's drive to move this forward as quickly as possible now, in order to reach the target of 20-30Mt CO2 captured and stored pa by 2030.

"Acorn, as the reserve cluster, is ready to step up as soon as the government asks us to do so."

'Carbon dumping ground'

In the Chancellor's spring budget, an extra £20bn was pledged for Carbon Capture and Storage (CCS) although this is most likely to focus on the first two clusters in England.

The Acorn project has been under development for more than a decade. Talks have continued with the government over how the business model will work.

Developers are desperate for clarity over how it will be paid for. Ministers say they will publish a CCS funding roadmap "shortly".

Friends of the Earth Scotland has criticised "public subsidies" for CCS projects.

Head of campaigns Mary Church said: "The UK Government is throwing public money at fossil fuel companies to try and prolong this climate-wrecking industry through the pipe dreams of carbon capture.

"These projects risk yet more missed climate targets and turning the seas off Scotland into Europe's carbon dumping ground."

Energy firm SSE also plans to build a new gas power station at Peterhead with CCS. This project would rely on the Acorn scheme going ahead.

SSE Chief Executive Alistair Phillips-Davies said it was "vital we get clarity on timescales" for the Acorn project.

Funding is also being offered to several green hydrogen developments in Scotland.

A commercial scale demonstrator site by ERM Dolphyn in Aberdeen has received backing alongside projects at the Beinn Tharsuinn windfarm near Cromarty in the Highlands and the Whitelee wind farm at Eaglesham near Glasgow.