On March 10, a powerful coalition of Scottish business leaders sent a unified message to the UK Government, urging immediate support for the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire. This initiative is crucial for Scotland’s industrial decarbonization, providing the country’s only viable COâ‚‚ transport and storage solution. The letter, addressed to Chancellor Rachel Reeves, emphasizes that failing to back Acorn CCS could jeopardise thousands of jobs, billions in investments, and Scotland’s economic growth.
Acorn CCS is pivotal for Scotland’s transition to a low-carbon economy. Located at the St Fergus Gas Plant, the project aims to capture and store up to 20 million tonnes of COâ‚‚ annually beneath the North Sea, utilizing existing oil and gas infrastructure to reduce costs and environmental impact. This strategic use of legacy assets not only supports industrial decarbonization but also positions Scotland as a leader in clean energy technologies.
The project’s significance extends beyond Scotland, as it has the potential to support decarbonization efforts across the UK and internationally through non-pipeline transportation methods like shipping. This capability underscores Acorn’s role in contributing to global climate change mitigation efforts.
The economic stakes are high. An economic impact assessment suggests that expediting the Acorn project could add £17.7 billion to the UK’s GDP by 2050, create over 10,800 construction jobs, and sustain 4,700 long-term operational roles. These figures highlight the transformative potential of Acorn CCS for Scotland’s economy, particularly in regions like Aberdeen and Grangemouth, which are heavily reliant on industries vulnerable to carbon pricing.
Sir Ian Wood, Chairman of ETZ Ltd, emphasized the project’s economic importance, stating, “Acorn CCS is a crucial catalyst needed to protect skilled jobs and unlock billions of pounds in investment. The UK Government must act now to develop this transformational opportunity that will support industrial decarbonization across the UK as well as much needed economic growth”.
The Climate Change Committee’s latest Carbon Budget underscores the urgent need for CCS deployment to meet the UK’s 2050 net-zero targets. The report highlights that the Scottish Cluster, anchored by Acorn, could store between 10 and 22 mega tonnes of COâ‚‚ annually by 2050. This aligns with the UK’s broader climate ambitions, which require significant CCS capacity to achieve net-zero emissions.
Chris Stark, Head of Mission Control for Clean Power 2030, has emphasized that CCUS is “vital to meeting the UK’s and the world’s climate change commitments”. Despite this strategic importance, Acorn CCS has faced nearly two decades of delays, underscoring the need for decisive government action.
Without Acorn CCS, Scotland’s key industries face mounting costs and a loss of competitiveness. The Grangemouth refinery, Scotland’s largest industrial emitter, is particularly vulnerable. Rising carbon costs could place Grangemouth at a competitive disadvantage, threatening further job losses and industrial decline. The impending closure of the Grangemouth refinery, with over 400 job losses, serves as a stark warning of the economic risks associated with delaying industrial decarbonization.
Dr. Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, stressed the urgency of government action, stating, “Scotland cannot afford further delays on Acorn CCS. The government has pledged a just transition for our workforce, but those promises must now be matched with decisive investment”.
The UK Government has acknowledged the project’s importance, allocating over £40 million for its development and committing to advance projects within the Track-2 clusters. However, Scottish business leaders are seeking more substantial support to ensure the project’s timely progression.
The Scottish Government has pledged £80 million for the project but cannot distribute these funds until the UK Government confirms additional funding under the Track-2 process. This funding uncertainty has been a significant hurdle for the project’s advancement.
The call for support for Acorn CCS reflects a broader concern that Scotland must not be left behind in the UK’s industrial decarbonization efforts. With its potential to unlock billions in investment, protect thousands of jobs, and contribute significantly to the UK’s net-zero goals, the Acorn project is a critical component of Scotland’s transition to a low-carbon economy. As the UK navigates its climate ambitions, the fate of Acorn CCS will be a defining moment for Scotland’s economic future and its role in the global effort to combat climate change.
