UK to invest £200 million in Acorn carbon capture project in Scotland

The UK government has announced a £200 million ($272 million) investment in the Acorn carbon capture and storage (CCS) project in St Fergus, Scotland. The funding is part of a broader CCS support program that will provide £9.4 billion over the current budget period and £21.7 billion over the next 25 years, according to Reuters.

The Acorn project is being developed by a consortium comprising Storegga, Shell UK, Harbour Energy, and North Sea Midstream Partners. It aims to capture CO2 emissions from industrial facilities and store them in geological formations under the North Sea.

Storegga CEO Tim Stedman called the funding “a key step towards a final investment decision (FID)” and stressed that it would contribute not only to the launch of Acorn, but also to the development of CCS infrastructure in Scotland and the growth of the industry across the UK.

At the same time, the government also announced its support for the Viking CCS project in the Humber region of northern England, but did not disclose the exact amount of investment.

UK Energy Security Minister Ed Miliband said the new investment would support industrial renewal in Scotland and Humber, creating thousands of highly skilled, well-paid jobs and bringing the country closer to carbon neutrality by 2050.

Once launched, Acorn and Viking will be able to capture up to 18 million tons of CO2 annually, making these projects key elements of Britain’s climate policy.

It should be noted that the UK is considering linking its ETS to the EU carbon market. The country seeks to strengthen cooperation with the EU in the areas of security and law enforcement, improve trade and investment relations, and remove unnecessary barriers to trade.