UK Chancellor Jeremy Hunt is facing calls to invest in carbon capture in the north-east to prevent “falling further behind” similar EU projects.
The Acorn project at the St Fergus gas terminal near Peterhead was snubbed by the UK Government in 2021, in favour of sites in England.
It was instead given “reserve” status but there have been delays to announcing the next “track two” funding phase.
The European Union has committed £38 billion to invest in low-carbon technologies up to 2030, including carbon capture projects.
Ahead of the next UK budget on March 15, SNP Westminster leader Stephen Flynn said he wants to see the chancellor invest in carbon capture in the north-east.
“Carbon capture technology will play a key part in Scotland’s journey to net zero and provide a just transition for oil and gas workers in the north-east”, the MP for Aberdeen South said.
“However, the Tories have failed to back the industry with the support it needs, whilst at the same time the EU is getting behind carbon capture right across the continent – we cannot afford to be left behind.”
‘Grievance high horse’
David Duguid, MP for Banff and Buchan, said the Acorn project is in a “good place” for being awarded track 2 status when the next funding round is announced.
He added: “The SNP continue to talk down this project and want people to believe that Acorn isn’t going to happen when it absolutely is.
“I continually meet with representatives from the project who have a completely different mindset to the SNP.
“Stephen Flynn and his party need to get off their grievance high horse and start working constructively with the UK Government and the developer to ensure this project’s success.”
Scottish Energy Secretary Michael Matheson last month slammed “money wasting” delays to carbon capture funding.
Speaking ahead of a visit to Aberdeen in January, he said there was “no certainty or clarity” over the timeframe for applying for the next tranche of funding.
He added: “Any further delay is wasting money on a project that could be getting delivered now and creating jobs now.”
The heart of the cluster is known as Acorn, which takes in key facilities across the north-east including the port and the St Fergus gas terminal in Peterhead, as well as former oil and gas pipelines in the North Sea.
Carbon capture and storage involves trapping emissions and transporting them, either by pipeline or shipping, for permanent storage underground.
‘World leader’
A UK Government spokesman said: “We are making the UK a world leader in carbon capture, utilisation and storage and are accelerating development of this vital technology as part of our greater efforts to increase energy security and independence.
“The UK Government is putting £1 billion into carbon capture, utilisation and storage (CCUS) through the CCS Infrastructure Fund and we recognise the strong role that Scotland can play in developing and expanding the use of CCUS – and the UK Government has provided Aberdeen £40million development funding, and we remain committed to ensuring this continues in Scotland and across the UK.”
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