Calls for UK to back Scottish carbon capture project 'worth £17.7bn'

Business leaders have called on the UK Government to back a Scottish carbon capture project.

The Acorn Project, at St Fergus near Peterhead, uses legacy oil and gas infrastructure to send captured industrial CO2 emissions to permanent geological storage 2.5km under the North Sea.

Carbon capture means the CO2 will not enter the atmosphere, where it can contribute towards climate change.

Industry leaders across the North East wrote a joint letter to Rachel Reeves ahead of the government’s comprehensive spending review this spring.

They have called on the chancellor to ensure “Scotland must not be left behind”.

Signatories include CBI, Prosper, the Institute of Directors, Scottish Financial Enterprise and the Scottish Chambers of Commerce.

Research by the group found that the project would be “transformational” for the region, contributing £17.7bn to UK economic output by 2050, and creating over 10,800 construction and 4,700 long-term operational roles

Graeme Reid, Peterhead Port Authority chief executive, also called on the UK Government to support funding for the “vital” project.

Mr Reid said: “Although the UK government has not committed to the funding required for the Acorn Project as yet, it is worth highlighting what the project could mean for the North East of Scotland.

“Without Acorn, a just transition will not succeed, and net-zero targets will be impossible to achieve.

“We need the right decision to be made for the benefit of the UK, Scotland and the North East, and to ensure we do not see investment heading outside the UK.”

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, stressed the urgency of government action.

She said: “Scotland cannot afford further delays on Acorn. The government has pledged a just transition for our workforce, but those promises must now be matched with decisive investment.

“This is a pivotal moment for Scotland’s economy, and we need clear signals that Westminster is serious about delivering a net-zero future that includes industrial communities like ours.”

Speaking last year, First Minister John Swinney said the Scottish Government is “wholly committed” to the project.

“Carbon capture and storage will play a huge role in Scotland’s net-zero future. Scotland’s energy transition presents one of the greatest economic and social opportunities of our time.

“This landmark project will help to support a just transition for oil and gas workers in the North East and across the country, by drawing upon their world-leading skills and expertise to create many good, green jobs in the coming years.”

However, the technology underpinning the plans has been described as “greenwashing” by climate activists.

Alex Lee, a campaigner with Friends of the Earth Scotland, said, “Carbon capture is a greenwashing trick by the fossil fuel industry, and their lobbyists are demanding the public pay for it.

“Carbon capture will push household bills even higher and will entrench a rigged energy system that only benefits these greedy firms.

“These obscenely rich companies won’t put their hands in their own deep pockets for carbon capture because of its long history of failure and huge budget blowouts.

“Workers and communities in Scotland can’t build a secure future based on a dodgy technology that is being used to slow down the move to renewables.“