UK Confirms £200m for Acorn Carbon Capture Project

The UK government has confirmed £200 million in funding for the Acorn Carbon Capture and Storage (CCS) project near St Fergus, Aberdeenshire, as part of its latest spending review. The project aims to capture CO2 emissions from various industries and store them under the North Sea, repurposing existing oil and gas infrastructure for carbon transport. Industry leaders and officials have welcomed the investment as crucial for Scotland’s transition to low-carbon technology and industrial renewal, though environmental groups like Friends of the Earth remain skeptical about its benefits. Final investment decisions on the project are still pending, with calls for a concrete timetable to reduce investor uncertainty. The Acorn project is also central to Scotland's hydrogen ambitions and national climate targets, although commercial-scale CCS viability remains unproven. The spending review additionally boosts Scotland’s overall budget and defence spending, reflecting wider economic and security priorities.