£200 Million Boost for Acorn Carbon Capture: A Step Towards a Greener Future?

UK Energy Secretary Ed Miliband has unveiled a significant funding boost of £200 million for the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire. This initiative aims to facilitate a final investment decision by the end of the current parliamentary session. While Miliband urged for substantial progress by the turn of the decade, he refrained from providing a specific timeline. Environmental advocacy group Friends of the Earth has expressed skepticism, claiming that this substantial public funding will primarily enrich oil and gas companies rather than genuinely addressing environmental concerns.

The investment is part of a broader spending review that will increase Scotland’s budget by an average of £2.9 billion annually. Miliband emphasized that the Acorn project could potentially safeguard around 18,000 jobs, particularly in the Grangemouth area, emphasizing its role in low-carbon energy generation and the establishment of a pipeline system for transporting captured CO2 to the North Sea for storage.

Miliband’s support reflects the UK government’s commitment to carbon capture innovation, aligning with similar funding for the Viking carbon capture project in the Humber region. He stated, “This government is putting its money where its mouth is… backing the trailblazing Acorn and Viking CCS projects,” which aim to rejuvenate local economies through highly-skilled job creation.

Tim Stedman, CEO of Storegga, the lead developer of Acorn, praised the government’s endorsement as a pivotal moment in securing private investment alongside public funding. Once operational, the Acorn and Viking projects combined could prevent up to 18 million tonnes of CO2 emissions each year and potentially contribute to low-carbon power and hydrogen production.

However, Dr. Liz Cameron, CEO of the Scottish Chambers of Commerce, called this investment a significant step toward making northeast Scotland a leader in low-carbon industry and urged both UK and Scottish governments to collaborate effectively to maximize the Acorn project’s potential.

Conversely, Caroline Rance from Friends of the Earth Scotland criticized the allocation of public funds for what she sees as a continuation of a fossil fuel-dominant energy system. She described carbon capture as an outdated solution with a history of failures over the past 50 years and argued for prioritizing investments in sustainable transportation, housing, and green jobs, advocating for climate action that truly benefits the public and addresses the climate crisis.