THE UK Government has confirmed its deadline for a decision on a crucial carbon capture project in Scotland.
On Tuesday, Energy Security and Net Zero Secretary Ed Miliband announced that a decision on the Acorn project would be made at the June spending review.
The Acorn carbon capture project is based at St Fergus near Peterhead in Aberdeenshire.
Last year, the UK Government announced the project would progress to its “track two” stage, and in November Miliband said more information would become available “in the coming months”.
We told how last month, Miliband said he would “consider” fast-tracking the project, adding that the move could help secure a future for workers at the Grangemouth oil refinery.
Speaking in the Commons on Tuesday, Seamus Logan, SNP MP for Aberdeenshire North and Moray East – where the project is based – asked the UK Government for a timeline on its decision.
Logan said: “Mr Speaker, the plans for a green generator at the Peterhead power station in my constituency are shovel ready, but they depend on approval for the Acorn project at St Fergus.
“On November 12 last year the minister stated in response to a question from me that the track 2 projects, there would be more information available in the coming months.
“Given that four months have now passed, can the minister provide an updated time scale outlining what these next steps are?”
Responding, Miliband told him: “I support the Acorn project, it is a really, really important project.
“The right place to make decisions for this – for reasons he will understand – will be at the spending review in June.”
It comes as business leaders wrote to Chancellor Rachel Reeves last week warning that the Acorn project must be treated as an “immediate priority”, stating that “there is no route for Scottish industry to decarbonise, threatening jobs and investment”.
Signatories to the letter include the CBI, Prosper, the Institute of Directors, Scottish Financial Enterprise, Scottish Chambers of Commerce and Sir Ian Wood, chairman of ETZ Ltd.
The UK Government has already provided £22 billion in funding for two similar carbon capture clusters in England, which the SNP said was a “snub” to Scotland.
At the time, First Minister John Swinney criticised ministers in London for their lack of support so far for the scheme in Scotland.
And in July, the Scottish Government announced £2 million in funding for the project which Swinney said would "be essential in securing the future of key industrial sites like Grangemouth and Mossmorran".
Logan said a decision on funding for the Acorn project should be announced in next week's Spring Statement, rather than waiting until June.
He added that there was “no project better placed” to deliver net zero and safeguard energy security than the Acorn project.
Commenting after his question in the chamber, Logan said: “Ed Miliband stood up and said this is a matter for the spending review in June, but now is the time to deliver – if Scottish Carbon Capture is coming down the line then it should be confirmed at the Spring Statement next week, not delayed till June.
“Our energy sector is in dire need of certainty because the simple reality is if you want to deliver Net Zero, grow the economy and help safeguard energy security then there is no project better placed than the Scottish Acorn project.
“If the Labour Government can’t invest in the most fundamental aspect of the Just Transition then any ambitions for net zero will remain a pipe dream.
“The days of warm words and rhetoric should have given way to firm financial commitment a long time ago so now it's imperative that Westminster gives the green light for Scottish Carbon Capture as quickly as possible."
A Department for Energy Security and Net Zero spokesperson told The National the UK Government was “hugely supportive” of the Acorn project and that announcements would be made at the spending review in June.
