A CARBON capture project in the north east has been awarded £2 million of funding from the Scottish Government.

During a visit to the Acorn project in St Fergus, Aberdeenshire on Monday, First Minister John Swinney said the new funding will be used to explore how a pipeline could transport carbon dioxide from Scotland’s central belt to the North East.

A joint venture with the Scottish Cluster, the project brings together expertise from Storegga, Shell UK, Harbour Energy and North Sea Midstream Partners, along with National Gas, to try and bolster the technology’s use in Scotland.

“The Acorn project will be essential in securing the future of key industrial sites like Grangemouth and Mossmorran,” said Swinney.

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“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.

“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.

“This announcement today demonstrates our unwavering support for carbon capture and storage, and I am confident that the UK Government will work constructively with us to ensure the Acorn Project is awarded Track 2 status. Enabling this innovative work to progress will help unlock so many opportunities not just for Scotland, but for the UK as a whole.”

Nic Braley, the managing director of the project, said: “We welcome the Scottish Government’s support for the SCO₂T Connect project, and the recognition of its importance for the decarbonisation of Scotland's industry.

“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.

“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.

“We look forward to working with both Scottish and UK Governments to make the Scottish Cluster a reality."

The CEO of National Gas, Jon Butterworth, added that the funding was a “brilliant example” of how industry and government could work side by side to fund technology which may help reduce emissions.

“We are committed to reaching net zero, and excited to explore how our world-class gas network can be at the heart of the drive to decarbonise with carbon capture and storage,” he said.

“We welcome today’s announcement from the Scottish Government. It is a brilliant example of how government and industry can work side-by-side to deliver clean energy solutions.”

Businessman Sir Ian Wood also welcomed the news, describing carbon capture as a "huge opportunity" for the north east. 

“The First Minister’s announcement of additional Scottish Government support for the pioneering Acorn Project is hugely welcome and marks a significant step in ensuring the North East of Scotland retains its status as a globally recognised energy hub," he said.

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“The Scottish Cluster remains one of the most cost-effective locations to advance CCUS in the UK given the capacity for CO2 storage in the North Sea and the existing oil and gas infrastructure available to repurpose for CO2 transport and storage.

“Vitally, there is also a huge opportunity for Scottish oil and gas firms, domestic supply chain companies and our wider economy to harness the skills and expertise of our current workforce in the coming years and contribute significantly to meeting net zero targets.”

However, climate campaigners have criticised the technology and claim it has so far failed to deliver the promised results.