The British government has confirmed a £200 million ($272 million) investment in the Acorn carbon capture and storage (CCS) project in St Fergus, Scotland, as part of its broader strategy to decarbonise heavy industry and meet its 2050 net zero emissions target.
The funding, announced on Thursday, follows the government’s wider spending review and provides fresh detail on its support for CCS technology, which is considered essential for cutting emissions from energy-intensive sectors.
The Acorn project, led by Storegga in partnership with Shell UK, Harbour Energy, and North Sea Midstream Partners, aims to capture carbon dioxide from industrial processes and store it beneath the North Sea. The government described the investment as a “vital step” towards enabling a Final Investment Decision (FID) and laying the foundation for a UK-wide CCS industry.
“This vital support will enable the critical work needed to reach Final Investment Decision and marks a major step forward — not only for Acorn, but for the development of Scotland’s CCS infrastructure and the growth of a UK-wide carbon capture and storage industry,” said Tim Stedman, CEO of Storegga.
The government also announced support for the Viking CCS project in the Humber region of northern England, although no specific funding amount was disclosed.
Energy Security and Net Zero Secretary Ed Miliband said the funding would drive industrial renewal and create thousands of skilled jobs in both regions. “This will support industrial renewal in Scotland and the Humber with thousands of highly-skilled jobs at good wages to build Britain’s clean energy future,” Miliband said.
Together, the Acorn and Viking projects are expected to have the capacity to capture up to 18 million tonnes of CO₂ annually once operational.
The investment forms part of the government’s £9.4 billion pledge for CCS over the current spending review period, and its longer-term commitment to allocate £21.7 billion to the technology over the next 25 years.
