Swinney announces Scottish Government cash for North East carbon capture scheme

The Scottish Government has confirmed a £2m grant for the Acorn carbon transport and storage project.

The cash will be used to explore how a pipeline could transport CO2 from the central belt to the north east, the SNP administration has said.

A joint venture with the Scottish Cluster, which includes expertise from Shell UK and others, the project aims to capture the emissions and put them in permanent geological storage under the North Sea.

It is thought that emissions from the Peterhead, Grangemouth and Mossmorran plants, amongst others, could be tackled in this way to reduce environmental harm.

On a visit to St Fergus in Aberdeenshire, where the Acorn transport and storage terminal will be sited, First Minister John Swinney said the scheme will be "essential in securing the future of key industrial sites".

He said: "A National Gas pipeline is a critical component of the project and I am delighted that the Scottish Government is providing funding to accelerate this innovative work.

"We are determined to support projects like this to support the development of Scotland's carbon capture and storage sector and the fair and just transition of oil and gas sector.

"This announcement today demonstrates our unwavering support for carbon capture and storage, and I am confident that the UK Government will work constructively with us to ensure the Acorn project is awarded Track 2 status. Enabling this innovative work to progress will help unlock so many opportunities not just for Scotland, but for the UK as a whole."

Under former prime minister Rishi Sunak, the UK Government has already committed money to the Acorn project as part of a £20bn package across four sites.

In January 2022, the Scottish Government put £80m on the table with the aim of accelerating the project. However, the funding was not delivered, with ministers saying the cash was “reprofiled”, following delays from the UK Government in the process.

Nic Braley, Acorn managing director, said: "Working together, Acorn and National Gas can provide a CO2 transport and storage solution to the Scottish Cluster, a diverse range of emitters from across Scotland and the rest of the UK, who are all committed to timely and cost-effective decarbonisation.

"The Scottish Cluster, with Acorn at its core, and the UK and Scottish governments can collectively make a major contribution to UK Net Zero commitments, supporting ambitions for clean energy, green prosperity and value for money.

"We look forward to working with both Scottish and UK Governments to make the Scottish Cluster a reality."