The UK government has pledged £200 million to the Acorn carbon capture and storage (CCS) project in Scotland, marking the largest government funding commitment to date. This investment, confirmed in the Chancellor’s Spending Review, aims to propel the project toward a Final Investment Decision (FID) before the end of the current parliamentary term.
“We welcome today’s announcement… confirming UK Government development funding to advance the project towards Final Investment Decision in this Parliament — an important step for the decarbonisation of hard-to-abate industries in Scotland,” said Nic Braley, General Manager of Acorn.
The Acorn project, located at the St Fergus Gas Terminal, is spearheaded by Storegga in partnership with Shell UK, Harbour Energy, and North Sea Midstream Partners. It seeks to capture industrial carbon emissions and store them beneath the North Sea, utilising 175 miles of repurposed pipeline infrastructure to connect central Scotland to offshore storage. The investment also supports National Gas’s SCO₂T Connect initiative, which provides essential infrastructure for CO₂ transport and reinforces the project’s national impact.
“This vital support will enable the critical work needed to reach FID 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.
Acorn and the Viking CCS project in England’s Humber region could jointly capture up to 18 million tonnes of CO₂ annually, significantly contributing to the UK’s net zero by 2050 target. This investment forms part of a broader £9.4 billion commitment to CCS over the current spending review period, with £21.7 billion earmarked over 25 years.
“This government is putting its money where its mouth is and backing the trailblazing Acorn project,” said Ed Miliband, Secretary of State for Energy Security and Net Zero. “This will support industrial renewal in Scotland with thousands of highly-skilled jobs at good wages to build Britain’s clean energy future.”
Positioning the UK as a leader in CCS and industrial decarbonisation, Acorn is viewed as a cornerstone project with the potential to drive export-led growth, energy resilience, and a low-carbon economy.
For further details on related projects, see [Humber carbon-capture project shortlisted by UK government](https://esgnews.com/humber-carbon-capture-project-shortlisted-by-uk-government/).
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