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UK Government Urged To Back Carbon Capture Project

Mar 14, 2025

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Climate Strategy & Risk
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Across the north east of the UK, business leaders have joined forces to urge Chancellor Rachel Reeves to back and prioritize a major carbon capture and storage project. The CBI, Institute of Directors, Scottish Financial Enterprise and Scottish Chambers of Commerce have all signed the later, which calls on Reeves to progress the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire.

An economic impact study estimates that progressing the Acorn project will add £17.7 billion to UK GDP by 2050. It is also set to create more than 10,800 jobs during construction, and sustain 4,700 long-term operational roles. As such, business leaders state that, “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 goes on to 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”. On the other hand, without the project, local business leaders warn that “there is no route for Scottish industry to decarbonise, threatening jobs and investment”. Meanwhile, rising carbon costs will place Grangemouth at a competitive disadvantage, threatening further job losses and industrial decline.

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 issued a response to the letter, commenting: “Acorn has already received over £40 million for development and it is our firm ambition to proceed with the projects in the Track-2 clusters. Scotland is at the forefront of the drive towards clean energy, with Great British Energy’s headquarters located in Aberdeen and the recent £56 million award for Cromarty Firth to become the UK’s first floating offshore wind port capable of making turbines at scale. Our historic funding for two initial carbon capture clusters is just the first step in developing a self-sustaining market for the industry.”

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