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Calls intensify for urgent UK funding to secure Acorn carbon capture project

Wednesday, 11 June 2025 12:12AM UTC

As the UK government nears a crucial spending review, business leaders and environmental advocates demand immediate financial backing for Scotland’s Acorn carbon capture project, warning that delays could jeopardise national climate goals and regional decarbonisation efforts.

Calls for increased investment in the Acorn carbon capture and storage project have intensified as the UK government approaches a critical spending review. Business leaders and environmental advocates alike argue that this project is integral to Scotland's decarbonisation strategy. The Acorn Project, which aims to capture significant amounts of CO₂ from industrial sources and transport it using existing gas pipelines, has been relegated to a reserve list for funding despite its potential to play a crucial role in helping Scotland meet its climate targets.

As Chancellor Rachel Reeves prepares to announce departmental budgets, Energy Minister Sarah Jones confirmed in the House of Commons that the government remains committed to supporting the Acorn Project, describing it as "an important proposal." She assured MPs that clarity on funding would soon be forthcoming, stating, "We know what an important proposal it is," and emphasising that decisions regarding the project are imminent.

However, the broader context surrounding carbon capture initiatives in the UK is troubling. Despite a commitment of £21.7 billion over 25 years for carbon capture and storage (CCS) initiatives, funding has predominantly flowed to projects in Teesside and Merseyside, leaving regions like Scotland in limbo. Concerns have been raised by the Public Accounts Committee regarding the high financial risks associated with unproven CCS technologies, leading to scrutiny from the Treasury over their cost-effectiveness. Energy Minister Jones has indicated that government targets for capturing 20-30 million tonnes of CO₂ annually by 2030 may no longer be feasible under the existing funding constraints.

The challenges for the Acorn Project are compounded by a lack of decisive support from the Scottish Government, which recently announced its budget for the upcoming financial year with no allocations for carbon capture technologies. Critics, including local MPs, have voiced frustration over this decision. The Scottish Government previously pledged £80 million in support for the project, contingent upon confirmation of funding from the UK government. Without this backing, significant delays loom over the commencement of related initiatives.

In previous discussions, environmental groups have urged the Scottish Government to create alternative strategies to fulfil climate obligations in case CCS projects like Acorn do not materialise. Advocates assert that reliance on such technologies can detract from implementing immediate climate solutions, such as enhancing energy efficiency and expanding sustainable transport options.

The Acorn Project's journey has been fraught with setbacks; it failed to secure Track-1 status in 2021, delaying the necessary carbon capture installations. Recent assessments have highlighted that it was one of the projects deemed "best placed" to achieve governmental objectives for a second track of CCS funding. Yet, without a clear timeline for its future, stakeholders remain restless as they await additional guidance from the UK government.

In conclusion, as the UK government deliberates on funding allocations, the fate of the Acorn Project hangs in the balance. With both government and industry leaders calling for action, the project could ultimately serve as a cornerstone for Scotland's decarbonisation efforts, provided it receives the necessary financial support.

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Source: Noah Wire Services

More on this

https://www.heraldscotland.com/news/25229078.scottish-acorn-carbon-capture-project-part-spending-review/?ref=rss - Please view link - unable to able to access data
https://www.ft.com/content/f9d2f3ad-b58f-4e8a-ab7c-01a132e79709 - The UK government's carbon capture and storage (CCS) projects face potential funding cuts as the Treasury scrutinizes them for cost-effectiveness and feasibility. Despite committing £21.7 billion over 25 years, funding has only been allocated to projects in Teesside and Merseyside, leaving other regions like Humber and Scotland uncertain. MPs and the Public Accounts Committee (PAC) have raised concerns about the high risk and financial burden of unproven CCS technology on taxpayers and consumers. Energy Minister Sarah Jones acknowledged that the previous target of capturing 20-30 million tonnes of CO₂ annually by 2030 is unattainable due to insufficient funding. The Treasury's tight economic constraints are making it difficult to justify further investment in CCS. Government leaders and industry stakeholders are looking for clear direction on the prioritization of CCS projects. The Department for Energy Security insists CCS is essential for achieving net zero and sustaining the UK's heavy industry and energy independence.
https://www.gov.scot/publications/climate-change-monitoring-report-2024/pages/9/ - The UK's decision in October 2021 not to award the Acorn Project Track-1 status has delayed the deployment of the carbon capture and storage system required for Negative Emission Technologies (NETs). Despite the UK Government's Powering Up Britain announcements in March 2023, which reconfirmed their commitment to four UK CCUS clusters by 2030 and started the Track-2 process highlighting Acorn as one of two projects 'best placed to deliver on Government objectives for Track-2', no NETs projects were included in the list taken forward to the negotiation stage. There is still no timeline for a final decision on Acorn and the associated range of emitter projects.
https://www.grampianonline.co.uk/news/north-east-mp-concerned-after-no-funding-announced-for-acorn-336536/ - A north-east MP has criticised the Scottish Government for not investing in the Acorn Project near Peterhead after it failed to include any funding for carbon capture technology in its budget announcement. The Scottish Government revealed that no budget provision has been provided for the financial year on carbon capture, usage, and storage (CCUS), despite pledging £80 million once the 'Scottish cluster was given certainty of its due status'. In July, Prime Minister Rishi Sunak visited St Fergus to announce that Acorn had been selected as one of the four CCUS clusters to be delivered in the UK by the end of this decade. However, almost six months later, the Scottish Government has refused to release the funding and now will not allocate any further support to the development of carbon capture technology over the coming months.
https://www.energyvoice.com/renewables-energy-transition/ccs/uk-ccs/544038/row-as-ccus-given-zero-funding-in-scottish-budget/ - The Scottish Government's budget announcement for 2024-25 did not include any funding for carbon capture, usage, and storage (CCUS), despite previous commitments. The government stated that due to uncertainty from the UK Government on the timescales for Track-2 CCUS support, no budget provision has been provided for this financial year. However, the Scottish Government remains committed to supporting the Scottish Cluster project with up to £80 million of capital funding to be provided at the earliest opportunity. Energy Secretary Neil Gray urged the UK Government to set out further details of the Track-2 scheme as a matter of urgency.
https://www.energyvoice.com/renewables-energy-transition/ccs/uk-ccs/565514/acorn-carbon-capture-project-still-waiting-for-uk-funding-scottish-energy-minister-says/ - The developers of the Acorn carbon capture project are 'still waiting' for UK government funding, Scotland’s energy minister says. It comes three years after Scotland’s SNP administration pledged £80 million in support for the Acorn developers and the Scottish Cluster centred on Grangemouth. The Acorn project involves capturing and transporting up to 20 million tonnes per year of carbon dioxide from industrial sites for storage under the North Sea. Acting cabinet secretary Gillian Martin said the Scottish government cannot distribute the £80 million until the UK government confirms funding for Acorn under the so-called 'track-2 process'.
https://foe.scot/press-release/acorn-project-fails-to-get-funding-scottish-government-must-now-develop-plan-to-plug-the-climate-gap/ - Environmental campaigners have called on the Scottish Government to come up with a plan to 'plug the gap' in their climate plans after the Carbon Capture project at Acorn once again failed to gain funding from the UK Government. In 2020, the Scottish Government Climate Change Plan update pledged approximately 19% of efforts to meet 2030 climate targets will be achieved by negative emissions technologies such as carbon capture, rising to 25% of emission reductions by 2032. The Scottish Government had forecast that Acorn would be in operation from 2024. Climate campaigners say that instead of being over-reliant on these 'dangerous distractions', Ministers should be rolling out ready-to-go climate solutions that will rapidly reduce our use of fossil fuels such as increased home insulation and the expansion of affordable and accessible public transport.

Acorn Project
carbon capture and storage
Scotland
UK government
climate change funding