Scottish government grants £2m to Acorn CCS pipeline project

Carbon, Energy, Hydrogen

Scottish government grants £2m to Acorn CCS pipeline project

The Scottish government has announced £2 million in funding for the Acorn carbon capture and storage (CCS) project centred on the St Fergus gas terminal.

The funding will be used to explore how a pipeline could transport carbon dioxide (CO2) from industrial areas in Scotland’s central belt to the North East.

The Acorn project is a joint venture with the Scottish Cluster, and involves North Sea operators Shell UK, Harbour Energy and North Sea Midstream partners alongside Storegga and National Gas.

The UK government confirmed funding for the project last year as part of the Track 2 cluster sequencing.

The Scottish Cluster incorporates industrial emitters and power, hydrogen, bioenergy and waste-to-energy operators across Peterhead, Grangemouth and Mossmorran seeking to capture and store CO2 emissions under the North Sea.

Developer Storegga expects Acorn to create around 21,000 jobs at peak, while the Scottish Cluster could add close to £18 billion to the UK economy by 2050.

Acorn Project

During a visit to the project site at St Fergus in Aberdeenshire, First Minister John Swinney said Acorn “will be essential in securing the future” of key industrial sites like Grangemouth.

“A National Gas pipeline is a critical component of the project and I am delighted that the Scottish Government is providing funding to accelerate this innovative work,” Swinney said.

Shell Unite Kaefer — The St Fergus gas terminal near Peterhead.

“We are determined to support projects like this to support the development of Scotland’s carbon capture and storage sector and the fair and just transition of oil and gas sector.”

Swinney said today’s announcement demonstrates the Scottish government’s “unwavering support” for the CCS sector.

“Enabling this innovative work to progress will help unlock so many opportunities not just for Scotland, but for the UK as a whole,” he said.

Acorn managing director Nic Braley welcomed the Scottish government support.

“Working together, Acorn and National Gas can provide a CO₂ transport and storage solution to the Scottish Cluster, a diverse range of emitters from across Scotland and the rest of the UK, who are all committed to timely and cost-effective decarbonisation,” Braley said.

“The Scottish Cluster, with Acorn at its core, and the UK and Scottish governments can collectively make a major contribution to UK Net Zero commitments, supporting ambitions for clean energy, green prosperity and value for money.”

National Gas chief executive officer Jon Butterworth said Acorn is a “brilliant example of how government and industry can work side-by-side to deliver clean energy solutions”.