Backlash as £500m lost over carbon capture snub
A CROSS-Border row erupted yesterday after Scotland lost out on a multi-million pound funding package to develop the UK’S first carbon capture and storage facility.
It had been hoped that the Acorn project at St Fergus, Aberdeenshire, could be ready by the middle of the decade – and that the UK Government would match Holyrood’s £500million transition fund for North Sea jobs.
Acorn is intended to ‘repurpose existing gas pipelines’ in order to take and store CO2 emissions from the North Sea and the Grangemouth oil refinery complex in Stirlingshire.
But the Aberdeenshire carbon capture, utilisation and storage (CCUS) project will not now form part of the UK’S first phase of burying polluting CO2 underground.
The first developments will instead be on the Humber on england’s east Coast, and around Liverpool.
Scotland may be developed as part of the second phase by 2030.
Yesterday the UK Government said it remained committed to Acorn’s potential, but the SNP called the decision a ‘catastrophic blow’.
energy Minister Greg Hands said in a statement the ‘Scottish Cluster’ was ‘a reserve if a back-up is needed’.
But the move was attacked by the SNP, with energy spokesman Stephen Flynn saying: ‘The North-east of Scotland is the home of the offshore industry and the obvious location for a carbon capture project.’
Scottish Tory Net Zero spokesman Liam Kerr described the move as ‘disappointing’, but said: ‘Support to develop CCUS technology is vital for the future of the North Sea energy industry.
‘The Scottish Conservatives have been pushing hard for the North-east to be at the forefront of CCUS. That will not change and it still will be a UK and world leader.’
Mr Kerr added: ‘Looking to Track Two within this decade, we will redouble our efforts with the UK Government, which has been the only one to acknowledge the strengths of Scottish CCUS, especially since the Greens and SNP formed their coalition of chaos.’
The Scottish Government’s Net Zero Secretary, Michael Matheson, said not choosing Acorn showed ‘a clear lack of ambition’ from the UK Government.
He said it was ‘completely illogical that the UK Government has taken the decision not to award the Scottish Cluster clear and definitive Track One status’.
Scotland Office Minister Malcolm Offord said it was ‘encouraging that the Scottish Cluster is a reserve’, adding: ‘I’m confident it will develop and compete for the next round of funding.’
A UK Government spokesman said: ‘To date, the UK Government has allocated £31million supporting the development of the Scottish Cluster scheme and it remains a key player in meeting ambitious carbon capture goals.’
The development comes as Boris Johnson unveiled a ‘Net Zero’ strategy for the UK, which could create hundreds of thousands of jobs.
It aims to turn Britain carbon neutral by 2050 and will involve massive investment in technologies such as wind and nuclear to replace existing fossil fuel power stations.
The UK Government said much of the funding announced will be UK-WIDE and/or ‘open to competitive processes that Scottish businesses can bid into’.
It also said the forthcoming Spending Review will clarify the allocation of funding to Scotland.
Meanwhile, the Scottish Government has decided it will opt out of the UK Government’s Boiler upgrade Scheme, choosing instead to focus on its own grants system.
‘Pushing hard for North-East’
‘Completely illogical’