Optimism grows for Acorn Project carbon capture scheme

Optimism is growing that Scotland's first carbon capture and storage facility is finally about to be given the go-ahead.

The Acorn Project at the St Fergus gas terminal in Aberdeenshire would pipe harmful greenhouse gas emissions under the North Sea.

It missed out on government support back in 2021.

Now the Treasury has hinted it might be back on as part of the Chancellor's spring budget later in the week.

It had been described previously as "shovel ready" but was instead placed on a reserve list.

In a trail of Wednesday's statement, the Treasury announced a "reset" with "unprecedented investment in domestic carbon capture" totalling £20bn over the next 20 years.

Chancellor Jeremy Hunt said he was committed to "spades on the ground" from next year.

The Acorn Project has been under development - in various forms - for more than a decade, so is probably one of the most advanced in the UK.

It had been hoped to be one of the first to receive government backing in 2021, but lost out to two projects in the north of England around the Humber and the Mersey.

An earlier plan to store emissions from Peterhead's gas-fired power station was dropped in 2015 when the coalition government cancelled a £1bn competition to develop the technology.

Carbon capture and storage is seen by policy makers as a vital tool in reaching net zero emissions by the middle of the century.

It would prevent carbon dioxide being released into the atmosphere by capturing it at the point where the fossil fuel is being burnt.

The Acorn Project - also known as the Scottish Cluster - would take greenhouse gases from a range of industrial processes across the country.

Redundant gas pipelines from the north east to the refinery at Grangemouth would be put into reverse to carry the CO2 back north.

Energy firm SSE Thermal has said it wants to build a new power station at Peterhead which would incorporate CCS.

The existing terminal at St Fergus would be used to turn natural gas into so-called blue hydrogen with the carbon dioxide being pumped back offshore.

There is even a proposal for direct air capture which would suck CO2 out of the air for storage.

However some environmentalists are opposed to the technology which they feel is a "dangerous distraction" from the urgent need to cut our emissions.

Friends of the Earth Scotland has long been vocal in its view that the money would be better spent on delivering a "just transition" away from fossil fuels.

Last week, Westminster's Scottish Affairs Committee published the findings of its inquiry into CCS in Scotland.

It said the Acorn Project could hold the key to the technology being rolled out at scale across the UK and called on Jeremy Hunt to provide backing in his budget.

BBC Scotland understands that the company behind the Scottish Cluster, Storegga, has not been given any more details about the Chancellor's forthcoming budget announcement.

However the company is believed to be optimistic that it would be good news.