Energy Secretary Ed Miliband has denied the Labour government ‘snubbed’ a major carbon capture project that could deliver a jobs boost in the north-east.
The senior Labour politician visited Aberdeen on Thursday as he pledged to make the city the “clean energy capital of Europe”.
But he was asked to respond to angry claims the government “snubbed” the Acorn Project at St Fergus, near Peterhead, which still awaits funding.
It comes after Prime Minister Sir Keir Starmer pledged nearly £22 billion to two carbon capture “clusters” in the north of England earlier this month.
Mr Miliband told the P&J the project is “certainly not being snubbed”.
“We are big supporters of the Acorn Project”, he said.
“The truth is the last government talked for years about carbon capture and storage but over 14 years they didn’t make it happen and they cancelled the project twice.
“In just three months this government has shown its commitment to carbon capture and storage with over £20 billion of investment.”
Former First Minister Alex Salmond, who died suddenly on Saturday, and SNP Westminster leader Stephen Flynn both slammed the decision earlier this month.
First Minister John Swinney also pushed Sir Keir on funding for the project during a summit in Edinburgh last week.
What is the Acorn Project?
The Acorn Project would use carbon capture and storage technology to trap harmful emissions and transport them, either by pipeline or shipping, for permanent storage underground.
It could create thousands of jobs in the north-east, at a time when oil and gas workers seek to transition into cleaner industries.
But the scheme was given reserve status after being passed over for funding in 2021 by the previous Tory government in favour of the two schemes in England.
Mr Miliband said the Labour government is “determined” to make so-called ‘track 2’ projects happen but didn’t confirm when funding would be made available.
Mr Flynn, who is MP for Aberdeen South, described the remarks as “little more than the same warm words on CCUS that we’ve all heard before”.
Andrew Bowie, north-east MP and shadow energy minister, said: “Labour will never be forgiven if they do not honour the previous Conservative government’s commitment to develop Acorn.”
A spokesman for the Acorn Project said: “We will continue to work with government to seek urgent clarity on funding and timelines to enable Track 2 projects to move forward at pace and to seize the momentum needed for the UK to meet its climate targets.”
North Sea ‘faces big challenges’, says Miliband
The energy secretary was speaking to the P&J following a tour of the Floating Wind Innovation Centre in Aberdeen on Thursday.
Responding to jobs fears over Labour’s policy to ban new oil and gas licences, Mr Miliband insisted his government would ensure a “just and stable transition in the North Sea”.
He said: “We know the North Sea faces big challenges but we are determined to work with industry to keep existing fields open for their lifetime.
“And to ensure we create alternative jobs in the clean energy sector at speed. We believe we can do that and determined to work with industry to make that happen.”
However, the sector also wants Chancellor Rachel Reeves to abandon plans to increase and extend the windfall tax on oil and gas firms, and remove investment allowances the sector receives.
There are grave warnings across the sector that it risks putting tens of thousands of people out of work.
Mr Miliband said a “dialogue” has been going on between the industry and the Treasury, particularly around investment allowances.
But added it was not for him to speculate ahead of the budget on October 30.
Conversation