The Labour Government must commit to funding for a vital carbon capture and storage project in Scotland if there is to be a just energy transition which could create thousands of jobs.
That’s the clear message from Peterhead Port Authority chief executive Graeme Reid to ministers about the Acorn Project ahead of the Comprehensive Spending Review (CSR) this spring.
It follows a visit by Mr Reid and members of the port’s management team to Norway’s flagship carbon capture development, Northern Lights near Bergen, earlier this week.
Northern Lights is developing the world’s first open-source CO₂ transport and storage infrastructure, delivering carbon storage as a service.
The aim is to help industrial emitters stop emissions that cannot be avoided in other ways from reaching the atmosphere and to provide a safe and permanent storage option for CO₂ that is removed from the air.
Mr Reid said: “In addition to receiving an in-depth presentation of the facility, we were lucky to also see the Northern Pioneer, the first of four vessels being built to transport CO₂ from industrial emitters to Northern Lights for onward permanent storage.
“While the Northern Lights project is currently a smaller scale facility, the visit was inspiring and gave a real sense of what the future could be for the Acorn Project at Peterhead Port.”
The Acorn Project uses legacy oil and gas infrastructure to send captured industrial CO₂ emissions to permanent geological storage, 2.5 kilometres under the North Sea.
Acorn is Scotland’s only advanced T&S network and makes use of one of the UK’s most mature and best understood CO₂ storage sites. Acorn has access to 40% of potential future carbon storage reservoirs in the UK.
The proximity of Peterhead Port to Acorn’s geological storage sites, existing pipeline connection and existing jetty, with the addition of some new infrastructure, makes it an ideal location for a CO₂ import facility.
Investment in redeveloping Peterhead Port, creating real jobs, will allow CO₂ captured from sources in other parts of the UK or internationally to be shipped to the Acorn stores via Peterhead – providing an option for emitters across the UK which do not have immediate access to CO₂ storage and the potential to create substantial international trade opportunities.
Mr Reid said: “Although the UK government has not committed to the funding required for Acorn Project as yet, it is worth highlighting what the project could mean for the North East of Scotland. To name just a few benefits, many thousands of jobs would be created, GVA is estimated to be over £17Bn, access to the EU CO₂ import market opportunity which is currently estimated to be £5Bn per year, and replacement of traditional oil and gas revenues for the Port securing its long-term future.
“Conversely, without Acorn, a just transition will not succeed, net zero targets will be impossible to achieve, many of the potential options for Grangemouth redevelopment rely on carbon capture and therefore most likely won’t be developed, likewise with Peterhead power station developments.
“Given that to date, investment has been promised then delayed four times by government, this summer’s CSR (the first of the Labour government) will be a pivotal moment for Acorn. We need the right decision to be made for the benefit of the UK, Scotland and the North East, and to ensure we do not see investment heading outside of the UK.”