A long-awaited energy project in Aberdeenshire linked to thousands of jobs has finally been backed by the UK Government.
Labour Chancellor Rachel Reeves backed a carbon capture project, known as Acorn, which will put St Fergus near Peterhead at the heart of her promised “next industrial revolution”.
The breakthrough in the Chancellor’s spending review follows a series of let-downs for business groups and campaigners keen to get on with the scheme.
Millions of pounds had previously been promised for similar projects in England – leading to a backlash in the north-east.
“Today I can announce support for the Acorn project in Aberdeenshire, supporting Scotland’s transition from oil and gas to low-carbon technology,” she said in Westminster on Wednesday afternoon.
Publicly owned GB Energy – headquartered in Aberdeen – will lead the national charge to build and invest in the UK, she added.
“These are investments to make sure the towns and cities that powered the last industrial revolution will play their part in our next industrial revolution,” she said.
The Acorn project is seen as a crucial way to transport climate-harming levels of carbon dioxide, storing the gas under the sea in old offshore wells.
Jobs and investment
It is linked to plans for a gas-fired power station at Peterhead – as well as jobs and investment.
Acorn estimates the full project, with wider links across Scotland, will add £17.7 billion to UK GDP by 2050, create over 10,800 jobs during construction and sustain 4,700 long-term operational roles.
Energy Secretary Ed Miliband will be in Aberdeenshire on Thursday to outline more details of the exact government support.
Aberdeen South MP Stephen Flynn, the SNP’s Westminster leader, said his party has campaigned for this project for years.
“However, the glaring omission in today’s announcement was any detail on the scale of funding and the timescales for delivery which stands in stark contrast to the £22billion commitment the Labour Government has already given to carbon capture projects in England,” he said.
“Westminster has had 20 years to hammer out the detail on Scottish carbon capture, so it must now deliver meaningful funding and concrete support at pace.”
Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “We welcome the Government’s recognition that Acorn is of vital strategic importance to the energy transition.”
Open letter
The chamber had signed an open letter in March demanding quick approval of Acorn.
It was backed at the time by energy businessman Ian wood who said: “The UK Government must act now to develop this transformational opportunity that will support industrial decarbonisation across the UK as well as much needed economic growth.”
Environmental groups are sceptical of carbon capture. Friends of the Earth say it props up the fossil fuel industry, takes focus of renewable energy and only hides carbon emissions, rather than actually cutting them.
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