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Rishi Sunak to give green light to carbon capture project in major boost for north-east

The prime minister will visit Aberdeenshire on Monday as he announces funding for the scheme.

Carbon capture funding is set to be given the green light. Image: Shell.

Rishi Sunak is set to announce funding for a huge carbon capture scheme near Peterhead which could create thousands of jobs.

The prime minister will visit Aberdeenshire on Monday to give the Acorn project the green light in a major boost for the north-east economy.

The north-east missed out on carbon capture and storage (CCS) funding in 2021, when investment instead went to two areas in the north of England.

Frustration has grown in recent months over delays to funding as the UK Government faced mounting pressure to make an announcement.

Rishi Sunak will visit Aberdeenshire to make the announcement. Image: Shutterstock.

On Friday, SNP Westminster chief Stephen Flynn warned patience was “growing thin” as he challenged the Tories to step up.

Today he said: “Any investment is of course welcome.

“However, the UK government has taken Scotland down this path before – and failed to deliver every single time, leaving Scotland’s green energy future in jeopardy.

“There can be no more delays.”

In March, Westminster MPs urged Chancellor Jeremy Hunt to dish out money for the project in his Spring Budget.

Eight years ago, the UK Government cancelled its own £1 billion carbon capture competition just months before awards were due to be made.

At the time, the Tories claimed funding for the scheme, which could have gone to Peterhead, was axed because it did not represent “the same value for money” as other priorities.

In 2020, the UK Government again reversed course and announced carbon capture projects would be backed to meet key climate change targets.

Last year, the Scottish Government said it would put forward £80 million to help get the plans off the ground.

‘Unproven’

The technology has proven divisive with not everyone in favour.

The Scottish Greens – who share power with the SNP – claim carbon capture is “untested” and cannot be relied upon to tackle climate change.

Party MSP Mark Ruskell said: “We cannot wholly rely on a delayed and still largely unproven technology to meet climate targets. So far CCS has overpromised and underperformed.”

Activists within the SNP also unsuccessfully tried to force the party into changing its position on the technology last year.

Aberdeen Tory MSP Douglas Lumsden said: “The Scottish Conservatives will welcome the Prime Minister to the North East tomorrow, where he will underline Scotland’s key place in our energy future.

“The UK Government wants to bolster our energy security, protect tens of thousands of Scottish jobs, while reducing carbon and meeting our net zero obligations.”

What is carbon capture?

Carbon capture and storage involves transporting harmful greenhouse gases north by pipeline or shipping to then store them underground in the North Sea.

The aim is to help the environment while allowing drilling for oil and gas in the north of Scotland to continue.

The Acorn project, led by carbon removal firm Storegga, is a joint business scheme aimed at making Scotland’s firms more environmentally friendly.

When up and running, the project will be centred at St Fergus Gas Terminal, near Peterhead.