JOHN Swinney has called on the Prime Minister to fast-track the development of a carbon capture scheme in Scotland after being “fundamentally misled” by the previous government.
The First Minister has written an open letter to Keir Starmer asking for clarification on timelines, funding, and criteria for Carbon Capture Utilisation and Storage Track 2 clusters, which previously included the Acorn project in Scotland.
Earlier on Friday the UK Government announced £21.7 billion of funding for the two carbon capture and storage projects in the North East and North West of England – with the Acorn project being snubbed.
Now Swinney is calling on Starmer to clarify key details for Scotland’s Acorn project will be established as he said the information in today’s announcement “fell short”.
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The leader of the SNP stated that the carbon project, which has been overlooked three times in the last decade for funding, will play an important part in Scotland's Net Zero ambitions.
In 2021, the Acorn project, located at St Fergus near Peterhead, was snubbed in the Track 1 stage of funding for carbon capture sites and was instead given “reserve status”.
It had also previously been snubbed in 2015, when the Tories withdrew £1bn from Peterhead despite promising the investment ahead of the 2014 independence referendum.
In July 2023, the then prime minister Rishi Sunak visited the site and pledged support to the project, but no funding was produced.
Swinney stressed in his letter that the project would be a huge boost to the Scottish economy and would also help to create thousands of new jobs alongside playing a critical role in a just transition for the industrial industry.
The Acorn project at St Fergus in Aberdeenshire is currently working with industrial, power, hydrogen, bioenergy and waste-to-energy businesses, including those in Peterhead, Grangemouth, and Mossmorran in Fife.
They plan to capture CO2 emissions and send them into permanent geological storage under the North Sea.
However, there have been frustrations over a lack of commitment to funding from the UK Government.
You can read Swinney’s full letter to Starmer below
“Dear Keir,
“The Scottish Government has noted the UK Government’s announcement today of up to £21.7bn of funding for the two carbon capture and storage projects in the North East and North West of England. Our Scottish Government’s Green Industrial Strategy prioritises CCUS as one of our five priorities to realise the economic benefits of the global transition to net zero.
“While the UK Government has a stated commitment to having four CCUS clusters operational by 2030, the announcement fell short on information for Track 2 clusters, including the Acorn project. I would like to reiterate the need for a streamlined and accelerated process for Track 2 to ensure the fastest possible deployment of the Acorn project and would appreciate if you could provide answers to questions we asked the previous UK Government seeking clarity on timelines, funding and criteria for the Track 2 process.
“The Acorn project and wider Scottish Cluster are essential for the Scottish and UK Governments to further grow the economy, secure jobs as part of a just transition and importantly, for respective governments to meet our legally defined climate targets. There is an opportunity now to be even more ambitious on CCUS, and the Scottish Government stands ready to support this journey. The Scottish Government recognises the critical role that the Grangemouth industrial cluster can play in supporting that transition and its potential to sustain its contribution to the Scottish and UK Economy. We will shortly publish our draft Grangemouth Just Transition Plan that will reflect our ambitions for the totality of the site and the intrinsic role the Acorn project should play.
“The Acorn project is also central to the Scottish Government’s Hydrogen Action Plan that highlights that both renewable and low-carbon hydrogen will play an increasingly important role in our energy transition to net zero in 2045.
“As I have indicated to you before, I feel I was fundamentally misled on this issue by the previous Government. I am therefore very anxious to ensure swift and effective progress is made on this as soon as possible. “I would like to discuss the above with you when we meet next week.
“John Swinney”
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