Chancellor announces funding for Acorn carbon capture project
The Acorn facility had been overlooked by successive UK governments in recent years in favour of investment elsewhere.
But the project – which will store carbon emissions from across Scotland under the North Sea – is in line for 'development funding' from the UK Government, according to the Chancellor's spending review announced on Wednesday.
Speaking in the House of Commons, Ms Reeves said: 'Today, I can announce support for the Acorn project in Aberdeenshire, supporting Scotland's transition from oil and gas to low carbon technology.
'A challenge and an opportunity well understood by the leader of Scottish Labour Anas Sarwar and the Scottish Secretary.'
It is not clear from the 136-page document released by the Treasury how much funding the project will be given, a fact criticised by SNP Westminster leader Stephen Flynn.
'The SNP has campaigned for investment in Scottish carbon capture for over a decade, so it is welcome that after years of Westminster delays and funding snubs we have finally secured a measure of progress towards making the Acorn project a reality to create jobs and investment for our communities,' he said.
'However, the glaring omission in today's announcement was any detail on the scale of funding and the timescales for delivery which stands in stark contrast to the £22 billion commitment the Labour Government has already given to carbon capture projects in England.
'Westminster has had 20 years to hammer out the detail on Scottish carbon capture, so it must now deliver meaningful funding and concrete support at pace.'
Urging the UK Government to display 'a seriousness about Scotland's energy industry', Mr Flynn added: 'You cannot secure economic growth, energy security and net zero without harnessing the existing skills we have in our offshore industries and without proper investment in key projects like Acorn – the SNP will always demand our resources are used to the benefit the people of Scotland and an end to the absurd circumstances whereby energy bills are going up in our energy-rich country while energy jobs are going down.'
Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick welcomed the news, saying he hoped the funding would 'allow work to proceed on the project's preliminary stages and move it forward'.
The Chancellor also announced up to £750 million in funding for the creation of a supercomputer at Edinburgh University which could be one of the most powerful in the world.
The plan had previously been scrapped by Ms Reeves in the early weeks of her Government taking office.
The Chancellor also announced the Scottish Government would receive an average block grant of £50.9 billion per year over the next three years.
Announcing the outcome of the spending review, Ms Reeves laid out increased funding for the NHS and housing, stretching into the billions.
However, it remains unclear how the announcements will impact Scottish Government budgets this year.
Scottish Labour leader Anas Sarwar praised the spending review as 'game-changing', adding: 'The plans set out today will bring billions of pounds of investment to Scotland, on top of the record budget settlement delivered in the budget.
'From the Acorn Project to a national supercomputer in Edinburgh to our defence industry, this Labour Government is investing in Scotland's future while the SNP carps from the sidelines.'
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