Latest news with #ScottishCluster
STV News
11-06-2025
- Business
- STV News
A mighty industry may grow from Acorn project after UK Government backing
There's an old saying that 'mighty oaks from little acorns grow'. For years now, backers of a carbon capture and storage (CCUS) site in Scotland believe a mighty industry is set to grow from the Acorn project in the north east of Scotland. The site would take emissions from industrial sites in Scotland and elsewhere in the UK and store them under the North Sea, to reduce the amount of CO2 released into the atmosphere. On Wednesday, after years of 'will it, won't it', the UK Government finally gave its backing to the project at the site of the gas terminal at St Fergus in Aberdeenshire. As part of the spending review by the chancellor, Acorn, along with another site in England known as Viking, will now be given the green light. However, exactly how much Acorn will get is still to be revealed. The UK Government does say it will provide £9.4bn of funding for CCUS over the course of this parliament. That money though looks like it will mainly go to helping advance two sites already given the go-ahead in England. Acorn will get 'development funding to advance their delivery' according to the Treasury. Crucially too, as is often the case, Treasury documents also say about Acorn, 'A final investment decision will be taken later this Parliament, subject to project readiness and affordability.' The Acorn project will take the greenhouse gases created through industrial processes. Repurposed pipelines and ships will take CO2 from places like Grangemouth to the Acorn site in the north east of Scotland. From there, the CO2 will then be transported by old pipelines around 100km offshore and stored around 2.5km under the seabed. The CO2 is stored below a seal of rocks to prevent the emissions from escaping. The project has become something of a political football. The Scottish Government has long called for the UK Government to give its full backing to Acorn. It has previously said it would support the site and the wider 'Scottish Cluster', which includes Grangemouth with funding, but wanted the UK Government to back it too. Acorn previously failed to get full backing from the Government, in what was known as 'Track-1' status. It was instead given 'reserve status'. Two sites in England were given the go-ahead instead and in October last year the UK Government said it would back those projects with nearly £22bn of funding over the next 25 years. In response to the announcement, the SNP have accused 'successive Westminster governments' of dragging 'their heels on Acorn.' The 'Scottish Cluster' includes Grangemouth, where of course there have been hundreds of job losses. It's unclear what that means for the scale of the Acorn project. Those behind Acorn though are pleased that finally they've been given UK Government support. Aberdeen and Grampian Chamber of Commerce today said Acorn can, 'Unlock £7bn in private investment, to protect and create thousands of high value jobs, and to support our supply chain through the transition.' However, environmental campaigners have accused CCUS of 'greenwashing'. Friends of the Earth Scotland say Acorn is 'a fossil fuel polluters pipe dream and will never live up to the hype'. Either way, Wednesday's news has been a long time in the making. There has been talk about Carbon Capture and Storage in Scotland for well over a decade. The announcement today may take it one step closer, but it is far from a done deal yet. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
11-06-2025
- Science
- The Herald Scotland
Why does Scotland require a new fossil fuel power plant?
Friends of the Earth Scotland has said that the Peterhead project must be stopped after new environmental assessments show that lifetime pollution from the site, which includes the power station and the construction works, is set to rise from an original estimate from 2022 of 6.3m tonnes of CO2e carbon dioxide equivalent) to 17.1m tonnes. What is the Peterhead Carbon Capture and Storage (CCS) project? Peterhead is a town in north-east Scotland with an existing gas-fired power station that has been operational since the late 1980s. The current plans involve proposals to either upgrade or replace parts of the power infrastructure at Peterhead with a new fossil fuel power plant that incorporates carbon capture and storage (CCS) technology. This new project is intended to be a combined cycle gas turbine (CCGT) plant powered by natural gas, designed to capture a significant portion of its CO₂ emissions and store them underground. Campaigners call for the rejection of the plant (Image: Friends of the Earth Scotland) The Peterhead CCS project, is a collaboration between SSE Thermal and Equinor, and aims to develop a new 910 MW gas-fired power station which would have technology to remove CO₂ annually from emissions, storing it in an Acorn offshore storage site approximately 100 km off the coast. The project is part of the Scottish Cluster initiative, which seeks to establish a low-carbon industrial hub in the region. What exactly is Carbon Capture and Storage (CCS)? CCS is a technology that captures carbon dioxide (CO₂) emissions from power plants or industrial sites before they are released into the atmosphere. The captured CO₂ is then compressed, transported, and stored deep underground in geological formations such as depleted oil and gas fields or saline aquifers. READ MORE: The goal is to reduce the environmental impact of burning fossil fuels by preventing CO₂ from contributing to climate change. Why is this project considered controversial? Critics argue that investing in new gas infrastructure may lock Scotland into fossil fuel reliance for decades, potentially hindering progress towards net-zero emissions. The project has been criticised for potentially conflicting with Scotland's climate commitments, with some arguing that it may divert resources from renewable energy initiatives. They have also questioned the legitimacy of its 'green' credentials with opponents, saying no carbon capture and storage (CCS) scheme has ever consistently trapped 90% of the carbon it creates as claimed. Research by the Tyndall Centre for Climate Change Research, commissioned by environmental groups has questioned the effectiveness of CCS technology in reducing greenhouse gas emissions from the energy sector. Critics say CCS is still costly complex and unproven at large scale. The project has received millions in public money which some believe would be better spent on renewables and energy efficiency. What are the potential environmental risks of CCS at Peterhead? Opponents have warned that if stored CO₂ escapes, it could undermine climate benefits and pose risks to humans and ecosystems. Opponents also claim injecting CO₂ underground could trigger minor earthquakes. Long-term monitoring is required to ensure storage sites remain secure for centuries. There are concerns offshore pipelines and injection could affect marine habitats. What are the expected benefits of the project? Advocates of the Peterhead CCS project say the development and construction phases are expected to support approximately 980 years of employment, with around 240 jobs sustained annually during operation. An estimated £60 million was projected to be contributed to the Aberdeen City and shire economy during development and construction, with £25 million added annually during the operational phase. Advocates say the plant would provide flexible, low-carbon electricity, complementing intermittent renewable sources and enhancing grid stability. And by capturing and storing CO₂ emissions, the project aims to cut the carbon footprint of the power sector. Energy firm SSE says the new Peterhead power station will be built so that more than 90% of the carbon it creates through burning gas can be captured and stored. And the likes of the Dundee-born chair of the Intergovernmental Panel on Climate Change (IPCC), Prof Jim Skea, has argued that CCS has an important role to play in energy generation. What is the current status of the project? The Scottish Government is expected to make a final decision on the planning application at some point with consultations and environmental assessments ongoing.
Sunday Post
08-06-2025
- Business
- Sunday Post
£80m for carbon capture shelved after Greens threatened SNP pact
Get a weekly round-up of stories from The Sunday Post: Thank you for signing up to our Sunday Post newsletter. Something went wrong - please try again later. Sign Up Vital funding to accelerate a carbon capture and storage project that could create thousands of jobs in Scotland was shelved after the Scottish Greens threatened to put their power-sharing agreement with the SNP at risk, we can exclusively reveal. It is one of a series of stark revelations uncovered by a Sunday Post investigation into why £80 million promised by the Scottish Government for the landmark Acorn project has yet to materialise. The Acorn project would see harmful greenhouse gas emissions piped under the North Sea and then stored, creating almost 5,000 long-term jobs and billions of investment for the Scottish economy. But we found squabbling between political factions and attempts to shift blame have caused the money to be held up at a time when the north east is haemorrhaging jobs. The SNP offered up the cash to encourage the UK Government to rethink after the Scottish Cluster, a group of decarbonisation projects focused on Peterhead Power station, missed out on funding in 2021. But earlier this year, SNP energy secretary Gillian Martin admitted there were no plans to pay out and claimed that investors do not currently need the cash. Previously unseen private communications, memos and briefing notes show: The Scottish Greens threatened to publicly disagree with the government's energy strategy if it handed out the £80m for carbon capture – a move that could have put the Bute House agreement in jeopardy. Emails sent between senior SNP figures and notes issued by special advisors indicate the funding was not originally conditional on UK Government support – as SNP ministers now claim. There was nearly three months of delay in discussing the funding at ministerial level while jobs were placed at risk. Net Zero secretary Michael Matheson was rebuked by UK energy minister Greg Hands for releasing details of their 'confidential' meeting so he could make an announcement ahead of an Environmental Information Request going public. Last night the GMB union described the revelations as 'shocking confirmation of ministers' inertia as a jobs catastrophe looms in the North Sea'. Meanwhile, nearly £22 billion has been promised over the next 25 years for Merseyside and Teesside, supporting thousands of roles. What does the Bute House memo say? A Bute House memo dated December 2022 – nearly a year after the £80m was announced – illustrates the power the Greens held over government energy policy at the time. It states the group had already been handed assurances of changes made in 'several areas'. The author, Green MSP Mark Ruskell, notes this is particularly the case in the Just Transition chapter of the government's plans. © KATIE NOBLE The note says the Greens would 'likely need to publicly disagree' with elements of the Energy Strategy and Just Transition Plan if it was published in its current form. It states the party would like to see any financial support for carbon capture and blue hydrogen come out of UK Government money, 'reallocating Scottish Government funding for other pressing priorities'. It adds that this includes reallocating the £80m projected spend from the Emerging Energy Technologies Fund on the Scottish Cluster. The Scottish Government had previously warned withdrawing the funding would give the impression that it no longer supports Acorn and would be contrary to the Bute House Agreement – an argument refuted by the Greens in the memo. Jobs 'still at risk' Scottish Conservative energy spokesman Douglas Lumsden said: 'This internal memo, hidden until now, shows the extremist Greens have had a veto on SNP energy policy for years. 'Although the Emerging Energy Technologies Fund promised £80m to develop the Scottish Cluster, the Greens said no. Then it was canned. 'Tens of thousands of Scottish jobs remain at risk because Patrick Harvie's paw prints are still all over Scottish Government policy.' © DC Thomson Environmental groups are sceptical of carbon capture and argue it props up the fossil fuel industry by hiding emissions, rather than cutting them. But the energy firms behind Acorn estimate the project will add £17.7 billion to UK GDP by 2050, create over 10,800 jobs during construction and sustain 4,700 long-term operational roles. It has been listed since 2023 as one of two new carbon capture projects awaiting formal backing by the UK Government following approval of the two clusters in England. Greens stand by carbon capture stance Scottish Greens co-leader Patrick Harvie said his party has always been sceptical about both the Scottish and UK governments putting too much reliance on 'untested' carbon capture technology, adding that it is firmly opposed to using it as an excuse for more fossil fuel extraction or burning. He said: 'At best – if it ever works – it could reduce emissions from the residual use of fossil fuel while we do everything we can to shift to renewables. 'But it's too often being used as an excuse for business as usual, which is why it's no surprise to see the anti-environment Conservatives backing it.' © Jane Barlow/PA Wire The Scottish Government claims the delay in handing over the money is linked to the UK Government taking so long to approve the project. However, internal memos and correspondence reveal no such conditions were in place when the money was first allocated. In a letter to Shona Robison in December 2021 – six weeks before the Acorn funding announcement – Michael Matheson said the Scottish Cluster would be supported without caveat by the same £80 million from the same fund. This is parroted in a number of other pieces of correspondence sent by Matheson that have subsequently been obtained by The Sunday Post. Around six weeks later, advisers began to gameplan the 'conditionality of funding point', adding that the 'key point to make would be that the £80m is not enough, and UKG support is still required in terms of access to business models etc.' SNP minister rebuked We can reveal officials were then left scrambling to put out an announcement because a letter from Matheson to UK energy minister Greg Hands referencing the cash was set to be released to the public through an Environmental Information Request. But Matheson was given a dressing down by Hands on January 19 2022 for making the announcement following what was supposed to be a confidential meeting. Hands wrote: 'You had been seeking a meeting with me for some days, which I agreed to, but at no point during what I understood to be a confidential meeting between two ministers, was it said that a media notification would follow the meeting. 'Instead, we had I thought, agreed at the meeting that the two governments would work together, which is what I believe the Acorn project would want, and the people of Scotland would expect.' © PA Hands says he told Matheson during the meeting that the £80m funding 'needs careful consideration but does not address some of the key challenges'. These include the likely burden of ongoing revenue support payments and practical constraints of supporting multiple carbon capture projects in three different areas of the UK to launch at the same time. Further correspondence reveals the Scottish Government was not notified the Scottish Cluster would not be included in a list of fast-tracked projects before the announcement was put out publicly. © Thomas Krych/ZUMA Press Wire/Shu Three meetings between Matheson and Hands were arranged and then cancelled around this time and there was no direct response to the funding offer in Matheson's letter to the Chancellor in October 2021 or a subsequent letter from the first minister to the prime minister the following month. This meant there was a nearly three month delay in discussing the funding proposal at a ministerial level. 'Inertia and inaction' GMB Scotland secretary Louise Gilmour said needless delays in driving through investment for Acorn exposes the abject failure of UK and Scottish governments to protect the sector or deliver new jobs in green energy. She said: 'Offshore production and onshore supply chains are in crisis with thousands of skilled jobs on the line but, behind the scenes, our ministers are apparently spending their time on spin and squabbles. 'There is clearly no joined-up thinking between our governments and no concerted plan of action. Instead, there are politicians playing games. © Andrew Cawley 'There is only inertia and inaction while thousands of well-paid jobs are in peril along with the families and communities that rely on them.' The Scottish Government said its Programme for Government 'made clear' that it is committed to the £80 million of support. However no actual funding was allocated and the project was not even mentioned in the 2025-26 Scottish Budget. The government added that the funding is 'contingent upon the UK Government confirming a full-funding package and timeline for the Acorn project at the Spending Review'.
The National
29-04-2025
- Business
- The National
Grangemouth refinery officially ceases processing crude oil
From today, Petroineos has said it will be importing "all the products necessary to meet Scotland's demand for transport fuels". In September last year the company said the refining activities would cease in 2025 as it transitions to becoming an import terminal for finished fuels. Yesterday, the UK Government was urged to take 'urgent and decisive action' over the £200 million promised to Grangemouth workers in February. Prime Minister Keir Starmer said the UK Government would invest £200m into Grangemouth and that it should bring in 'three times that' in private funding, bringing the total to £800m. The financial package from the UK Government is an attempt to ensure that high-quality jobs and economic opportunity are not lost in the area. Owners Petroineos, which is shutting the plant this year with a loss of around 400 jobs, said the site makes a loss of £380,000 every day. READ MORE: Crucial new report spells out nine options for Grangemouth – see the full list However, Deputy First Minister Kate Forbes urged Starmer to accelerate the progress on the Acorn Carbon Capture project at Peterhead after the UK Government announced further funding for carbon capture projects in England without mention of finance or progress for the Scottish Cluster. At the time of the announcement, the SNP accused the Labour Government of treating Scotland as an afterthought. On Tuesday, at a parliamentary debate on supporting Scottish industry, Forbes is expected to call on the UK Government to be more transparent with the funds ringfenced for Grangemouth. Iain Hardie, regional head of legal and external affairs, said: 'Grangemouth refinery is no longer processing crude oil. Petroineos has invested £50 million in creating a modern import and distribution terminal capable of receiving finished fuels by sea for onward distribution to customers around the country. 'From today, we will be importing all the products necessary to meet Scotland's demand for transport fuels.' He continued: 'We would like to pay tribute to the workforce here. Our colleagues have shown incredible commitment, dignity and resilience during months of uncertainty regarding the future of this facility, through the consultation period, phased shutdown and the start of refinery decommissioning. 'It has been a challenging period but their professionalism has ensured security of fuel supply to our customers across Scotland and beyond.'
The Herald Scotland
27-04-2025
- Business
- The Herald Scotland
SNP's Flynn hits out at Labour over Acorn CCUS snub
However, there was no update on the Acorn CCUS project – based at St Fergus, near Peterhead. Stephen Flynn, the SNP's Westminster leader, said the Labour government were treating Scotland as an 'afterthought', warning that repeated delays to the project risked economic decline in the north-east and undermined efforts to reach the UK's legally binding climate targets. St Fergus in Aberdeenshire (Image: PA) Acorn is Scotland's only large-scale CCUS initiative. It aims to capture carbon dioxide emissions from industrial facilities and power plants, transporting them offshore to be permanently stored in depleted gas fields beneath the North Sea. The project plans to reuse existing oil and gas infrastructure, notably pipelines that already run from St Fergus out to former drilling sites. READ MORE Acorn missed out on support in 2021, when funding instead went to two areas in the north of England. It was instead placed on the Track 2 reserve list for future backing. That means it has little chance of being developed until the second phase in the 2030s at the earliest. If delivered, it could provide a critical lifeline for Scotland's heavy industries. The Climate Change Committee, the UK's statutory adviser on climate policy, has projected that the Scottish cluster could ultimately store between 10 and 22 million tonnes of CO₂ a year by 2050. The project is also intended to help secure a "just transition" for the north-east economy as the oil and gas sector declines. A 2023 impact assessment estimated that Acorn could support 15,000 jobs across construction and long-term operation, with many roles directly reusing skills from the offshore oil and gas sector, which has seen workforce numbers in Aberdeen fall by about a third in recent years. Earlier this year, industry leaders warned that not investing in Acorn could risk thousands of jobs, billions of pounds of investment, and future economic growth. (Image: House of Commons/PA Wire) In a letter to Chancellor Rachel Reeves, Mr Flynn, who is the MP for Aberdeen South, said the omission of Acorn funding was 'another chapter in the same old Westminster story' in which Scotland's energy sector was treated as a "cash cow". He said the Prime Minister's announcement of further funding for projects in England "without mention of finance or progress for the Scottish Cluster' was disappointing. 'The success of this project has been hindered by a failure of consecutive UK Governments to deliver certainty on both licensing and funding. The same damaging trend appears to have continued into your government. 'The simple reality is that if you want to deliver Net Zero, grow the economy and help safeguard energy security then there is no project better placed than Acorn, but it appears that once again Scotland is an afterthought to Westminster. "Business leaders are absolutely clear on this and it's high time the UK Labour Government listened to the evidence and delivered, with the industry in dire need of certainty from a UK Labour Government which has offered nothing outside of confusion and prevarication.' Mr Flynn said the announcement was the 'latest instalment in a litany of Labour Government betrayals of Scottish industry, where investment and key assets move higher up the Labour Party's list depending on which side of the border they are found.' 'There is a growing consensus and conclusion that Scotland is an afterthought to the UK Labour Government and that these latest announcements have been a kick in the teeth to Scottish workers, to our energy sector and to our economy,' he added. READ MORE A spokesperson for the Department for Energy Security and Net Zero defended the government's position, saying ministers 'recognise the value of the Acorn project to Scotland and our wider clean power plan'. They said: 'We are delivering first-of-a-kind carbon capture projects in the UK, supporting thousands of jobs across the country, reigniting industrial heartlands and tackling the climate crisis. 'The Energy Secretary has made clear in Parliament that we recognise the value of the Acorn project to Scotland and our wider clean power plan. Carbon capture requires significant resources, and it is right that it is considered within the Spending Review. 'Alongside headquartering Great British Energy in Aberdeen, we are working with industry on a plan for the next generation of good jobs in Scotland in hydrogen, offshore wind and ports, as part of the government's clean energy superpower mission.' Energy Secretary Ed Miliband told MPs in March that the government remained committed to Acorn and the Scottish Cluster. 'I support the Acorn project, it is really important,' he said. However, the minister added that 'the right time to make decisions will be at the spending review in June.' Energy Security and Net Zero Secretary Ed Miliband (Image: Kin Cheung/PA) The UK is well placed for CCUS projects. There is enough storage capacity for an estimated 78 billion tonnes of CO₂ — more than 200 years' worth of current emissions. However, the technology is expensive. Capturing, transporting, and storing carbon can cost between $50 and $100 per tonne of CO₂. There are also questions over whether or not the first-of-its-kind technology is viable. In February, the House of Commons Public Accounts Committee (PAC) described the technology as a 'gamble' and said they were 'unconvinced that CCUS is the silver bullet Government is apparently betting on' to reach net zero. The UK Government downgraded its ambitions for CCUS in 2024, with a target of storing 20 to 30 million tonnes per year of CO₂ by 2030 now seen as no longer achievable. Last week's announcement came after the UK Government and Italian energy firm Eni agreed a deal for financial support for its Liverpool Bay carbon capture and storage project. The firm said the agreement of financial terms with the UK government will allow the project to move into the construction phase and 'support the UK's industrial competitiveness for the long term'.
