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Peterhead Port urges UK Government to move faster on Acorn

Boss Simon Brebner fears other nations may "steal a march" on the UK in carbon capture race

Peterhead Port Authority chief executive Simon Brebner. Image: Kath Flannery /DC Thomson
Peterhead Port Authority chief executive Simon Brebner. Image: Kath Flannery /DC Thomson

Peterhead Port Authority (PPA) chief executive Simon Brebner is seeking swifter action from Westminster to help deliver the Acorn carbon capture utilisation and storage (CCUS) scheme at St Fergus.

The north-east has “waited too long for this as it is”, he told Energy Voice, sister website of The Press and Journal.

He said it was “frustrating” the region was still awaiting go-ahead for the project.

We are still, frustratingly, awaiting confirmation of the go-ahead for Scotland’s much-needed and praised carbon capture project, centred around St Fergus here in the north-east.”

Simon Brebner, CEO, Peterhead Port Authority

Acorn is expected to create thousands of jobs for the area.

Chancellor Jeremy Hunt yesterday confirmed a £20 billion package of support for CCUS projects around the UK.

But there was nothing in his Spring Budget speech about Acorn, which needs funded.

‘Much to be welcomed’ in Spring Budget

Mr Brebner welcomed broader support for the low-carbon technology, but urged the Treasury to move at pace on Acorn.

There needs to be swift progress on this before other nations steal a march on us.”

He added: “There is much to be welcomed in the chancellor’s Spring Budget but, as ever, the devil is in the detail.

“We are still, frustratingly, awaiting confirmation of the go-ahead for Scotland’s much-needed and praised carbon capture project, centred around St Fergus here in the north-east.

“There needs to be swift progress on this before other nations steal a march on us.

“The skills and capital already in place will bring much-needed investment and jobs, as well as the opportunity to help decarbonise the UK.”

Acorn is expected to deliver 21,000 jobs in its first phase, storing up to six million tonnes of CO2 on a depleted North Sea gasfield.

The Treasury has said details on funding for “track two” clusters, which may include Acorn, will be announced “shortly”.

In yesterday’s Spring Budget, the chancellor said the £20 billion would support “early development of CCUS, starting with projects from our east coast to Merseyside to North Wales.”

acorn ccs
The St Fergus gas terminal.

The north-east has been trying to get a CCUS development up and running since 2007.

But the region has repeatedly faced roadblocks to projects achieving a green light.

PPA’S boss also noted the chancellor’s pledge of a new Scottish investment zone on top of 12 others across England.

These “growth clusters” will have tax benefits, similar to freeports, and access to funding worth £80 million over five years.

Will the north-east be home to a new Scottish investment zone?

Mr Brebner said the north-east was a key region for the support.

He added: “We’re keen to hear more about the potential for an investment zone for Scotland as announced by the chancellor.

“The region is the engine room of UK PLC, not to mention a huge provider of tax receipts.

“We should be at the heart of the nation’s shift towards a lower carbon economy, while ensuring we retain our energy security and the undoubted benefits oil and gas bring to the world.”

Conversation