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John Swinney unveils £2m for north-east carbon capture – years after £80m promise

The first minister, at St Fergus, said the rest of the cash depends on Sir Keir Starmer's next moves on the long-awaited scheme.

First Minister John Swinney at the site of the Acorn Project at the St Fergus Gas Terminal in Aberdeenshire. Image: Kenny Elrick/DC Thomson.
First Minister John Swinney at the site of the Acorn Project at the St Fergus Gas Terminal in Aberdeenshire. Image: Kenny Elrick/DC Thomson.

First Minister John Swinney has awarded £2 million to a major north-east “carbon capture” project – but says more funding depends on what the new Labour government does next.

The first minister, at the Acorn Project in St Fergus, near Peterhead, said the funding will be used to explore how a pipeline could transport carbon dioxide from the central belt to the north-east.

First Minister John Swinney speaking with North East Scotland College apprentices at the site. Image: Kenny Elrick/DC Thomson.

In January 2022, the Scottish Government put £80 million on the table with the aim of accelerating the Aberdeenshire-based project.

But the funding never materialised with ministers saying the cash was “reprofiled”, following delays from the Tory-run UK Government in the process.

‘Stand willing and ready’

Asked by the P&J where the rest of the promised cash had gone, Mr Swinney said Labour must first make  “crucial decisions” on next steps for the project.

He added: “The Scottish Government is investing today in the pipeline element of the project and we stand willing and ready to support other aspects of the project as the necessity and as the arguments and case for that develops.”

He told journalists at St Fergus on Monday that the carbon capture project was one of the topics discussed during a meeting with new Labour Prime Minister Keir Starmer in Edinburgh on July 7.

Prime Minister Sir Keir Starmer meeting First Minister of Scotland John Swinney at Bute House, Edinburgh, during the PM’s tour of the UK following Labour’s victory in the 2024 General Election. Image: PA.

The project team is working with industrial, power, hydrogen, bioenergy and waste-to-energy businesses, including firms in firms in Peterhead, Grangemouth and Mossmorran. They hope to capture carbon dioxide emissions and send them to geological storage under the North Sea.

The UK Government under former Prime Minister Rishi Sunak already committed funding to the project as part of a £20 billion package across four sites.

First Minister John Swinney with St Fergus Plant manager Kerry O’Neil. Image: Kenny Elrick/DC Thomson.

Meanwhile, opponents of carbon capture and storage technology, argue the technology has not properly been demonstrated to work at commercial scale.

The UK Government says it will invest in technologies, such as carbon capture and storage, through its National Wealth Fund.

Details of funds for the Aberdeenshire project, known as Acorn, are in the queue behind earlier commitments in the north of England.

First Minister John Swinney speaking with control room staff (L-R) Andrew Smith and David Buchan. Image: Kenny Elrick/DC Thomson.

Nic Braley, managing director of Acorn, said it would “certainly be helpful” to see more of the promised Scottish Government funding.

He added: “There’s no reason why we can’t do it. It’s well understood, it’s safe, it uses the skills and capabilities that we have developed here in the north-east of Scotland through the oil and gas sector and it leverages a means to the industries of the future.”

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