Sir Ian Wood has urged the UK Government to confirm part of its £20 billion carbon capture utilisation and storage (CCUS) pot will go to the Acorn project in Aberdeenshire.
He said the announcement of CCUS funding in Wednesday’s Spring Budget was welcome.
But the oil and gas industry doyen also urged ministers to “as a priority” set out how the cash will specifically help Acorn, earmarked for St Fergus gas terminal near Peterhead.
As it stands, the scheme – the backbone of a wider Scottish “cluster” – of carbon capture initiatives – is the government’s reserve project after it missed out on “track one” status.
Details for track two of the funding competition are expected imminently, after numerous delays.
Acorn is expected to make the cut this time, although there was no mention of it in Chancellor Jeremy Hunt’s Spring Budget speech.
Mr Hunt said projects to be supported would be in “east coast to Merseyside to North Wales”.
But the chancellor did insist the money would pave the way for CCUS schemes “everywhere across the country”, as the UK pursues its goal of net-zero by 2050.
Sir Ian said: “We welcome the chancellor’s commitment to support carbon capture with up to £20bn over the next two decades but urge the UK Government to confirm, as a priority, the Acorn project will benefit from this funding.
“Removing its reserve status and allowing it to move forward will unlock billions of pounds of private sector investment, support significant new job creation across the north-east of Scotland and help ensure the UK accelerates toward meeting net-zero targets.”
Renewable-energy company Storegga is spearheading the Acorn project, with backing from Shell, Harbour Energy and North Sea Midstream Partners.
Meanwhile, Sir Ian said the chancellor’s failure to apply a price floor for the windfall tax, or energy profits levy, was “disappointing”.
Peterhead Port urges UK Government to move faster on Acorn
He added: “This policy is creating an adverse environment for investment and jobs precisely at the time we need to be maximising domestic energy security.
“We must have a more stable fiscal regime to incentivise this which will, in turn, allow us to accelerate our energy transition ambition.”
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