Some of the biggest names in Scotland’s business community have joined forces to urge the UK Government to back the Acorn Carbon Capture and Storage (CCS) project in Aberdeenshire.
In a joint letter to Chancellor of the Exchequer, Rachel Reeves, signatories including CBI, Prosper, the Institute of Directors, Scottish Financial Enterprise and Scottish Chambers of Commerce have warned that failing to act now threatens thousands of jobs, billions of pounds of investment, and economic growth.
Acorn CCS is central to Scotland’s ability to cut industrial emissions, providing the country’s only viable CO₂ transport and storage solution.
Without it, key industries – including energy, chemicals, and manufacturing – face mounting costs, a loss of competitiveness, and a major risk of job losses.
The letter references the Climate Change Committee’s latest Carbon Budget, which highlights the urgent need for CCS deployment to meet the UK’s 2050 net-zero targets.
According to the report, the Scottish Cluster, anchored by Acorn, could store between 10 and 22 mega tonnes of CO₂ annually by 2050.
Sir Ian Wood, Chairman of ETZ Ltd, warned that further delays to Acorn CCS could have serious economic consequences for Scotland. He 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.”
Economic research estimates that accelerating Acorn will add £17.7 billion to UK GDP by 2050, create over 10,800 jobs during construction, and sustain 4,700 long-term operational roles.
A fast-tracked decision would also enable early carbon capture at Peterhead Power Station, a 900MW gas-fired plant critical to UK energy security.
Peterhead’s ability to provide flexible, dispatchable power is a key element of the government’s Energy Security Strategy and Clean Power 2030 Action Plan.
Additionally, Acorn CCS is vital for Grangemouth, Scotland’s largest industrial emitter, where rising carbon costs could put thousands of jobs at risk.
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, stressed the urgency of government action.
She 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."
Despite the UK’s climate ambitions, Acorn CCS has faced nearly two decades of setbacks. The letter urges the government to act decisively and ensure Scotland is not left behind in the country’s industrial decarbonisation plans.
The full list of signatories is:
- Sir Ian Wood KT GBE, Chairman, ETZ Ltd
- Dr Liz Cameron CBE, CEO, Scottish Chambers of Commerce
- Russell Borthwick, CEO, Aberdeen & Grampian Chamber of Commerce
- Myrtle Dawes, CEO, Net Zero Technology Centre
- Michelle Ferguson, Director, CBI Scotland
- Maggie McGinlay, CEO, ETZ Ltd
- Sara Thiam, CEO, Prosper
- Jennifer Craw MBE, CEO, Opportunity North East
- Sandy Begbie CBE, CEO, Scottish Financial Enterprise
- Catherine McWilliam, Director, Institute of Directors Scotland
The letter in full
The full text of the letter reads as follows:
Dear Chancellor
We write to urge the UK Government to commit, in its Comprehensive Spending Review, to progressing Scotland’s only opportunity for industrial decarbonisation, the Acorn CCS project, as an immediate priority.
We welcomed your recent comments in highlighting the role for similar projects in Teesside and Merseyside, which you described as “opportunities as we decarbonise the economy to bring good jobs”. These opportunities also exist in Scotland, and they must be fully realised.
Acorn is Scotland’s only CO₂ transport and storage solution. Without it, there is no route for Scottish industry to decarbonise, threatening jobs and investment. The latest Carbon Budget published by the Climate Change Committee (CCC) makes this point unequivocally. Its Balanced Pathway scenario requires up to 73 MtCO2
of Carbon Capture and Storage (CCS) annually by 2050 and states the Scottish Cluster could store 10–22 MtCO2 per year by then. Alarmingly the report also highlights that direct employment in oil and gas has declined by a third in Aberdeen and the wider region since 2015, household income has fallen, and poverty has increased.
Your government has repeatedly committed to delivering a just transition for oil and gas workers, particularly in North East Scotland. An economic impact study on the Scottish Cluster states that by advancing Acorn CCS, the Scottish Cluster will contribute £17.7 billion to UK economic output by 2050, create over 10,800 jobs during construction, and sustain 4,700 long-term operational roles. This would be transformational for the region.
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. Peterhead Carbon Capture would provide flexible, dispatchable power to balance intermittent renewables, ensuring stable electricity supply. This aligns directly with your government’s Energy Security Strategy and Clean Power 2030 Action Plan.
Critically, getting CCS underway at Peterhead will unlock the next phase of industrial decarbonisation for Grangemouth—Scotland’s largest industrial emitter. Without CCS, rising carbon costs will place Grangemouth at a competitive disadvantage, threatening further job losses and industrial decline. The impending closure of the Grangemouth refinery with over 400 job losses is a stark warning of the economic risks of delaying industrial decarbonisation.
There has never been a more important time for this project to proceed at pace. Fast-tracking Acorn would unlock £7 billion in private investment, repurpose existing infrastructure for cost-effective CO2
storage and lay the foundation for long-term industrial competitiveness. This will support Grangemouth’s transition, protect thousands of skilled jobs, and position the region as a hub for clean industrial growth – delivering strong returns for both the economy and the taxpayer.
We fully endorse the comments of Chris Stark, Head of Mission Control for Clean Power 2030, who has declared CCUS is “vital to meeting the UK’s and the world’s climate change commitments”. Yet despite its strategic and economic importance, Acorn CCS has faced nearly two decades of delay.
If the UK is serious about decarbonisation, economic growth and energy security, we must move faster and more decisively.
Scotland must not be left behind.