Business leaders urge Chancellor to back carbon capture project

Business leaders in the north east have joined forces to urge the UK Government to back a major carbon capture and storage project and treat it as an “immediate priority”.

They have written to Chancellor Rachel Reeves calling on her to progress the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire.

In the letter they warn that without the project “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.

An economic impact study estimates that accelerating Acorn will add £17.7 billion to UK GDP by 2050, create more than 10,800 jobs during construction, and sustain 4,700 long-term operational roles.

Sir Ian said: “Acorn CCS is a crucial catalyst needed to protect skilled jobs and unlock billions of pounds in investment.

“The UK Government must act now to develop this transformational opportunity that will support industrial decarbonisation across the UK as well as much-needed economic growth.”

The letter suggests a decision to fast-track Acorn now could quickly enable SSE’s plans for carbon capture at its Peterhead site via a proposed new power station with a generating capacity of up to 900MW.

It says that “critically, getting CCS under way at Peterhead will unlock the next phase of industrial decarbonisation for Grangemouth”.

It warns that without CCS rising carbon costs will place Grangemouth at a competitive disadvantage, threatening further job losses and industrial decline.

This is a pivotal moment for Scotland’s economy

The refinery at Grangemouth is due to transition into an import terminal in the coming months, with the loss of 400 jobs.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “Scotland cannot afford further delays on Acorn CCS. The Government has pledged a just transition for our workforce, but those promises must now be matched with decisive investment.

“This is a pivotal moment for Scotland’s economy, and we need clear signals that Westminster is serious about delivering a net-zero future that includes industrial communities like ours.”

The UK Government has already provided funding for two similar carbon capture clusters, in Merseyside and Teesside.

The UK Government has been asked for comment about the letter.