• £200 million investment will accelerate the Acorn CCS project, supporting Final Investment Decision (FID) within this Parliament.
• 18 million tonnes of CO₂ capture capacity anticipated between Acorn and the Viking project, bolstering UK decarbonisation.
• Thousands of jobs created and protected, aiding industrial renewal and long-term energy security in Scotland and beyond.

The UK government has allocated £200 million to the Acorn carbon capture and storage (CCS) project in Scotland — marking the largest government funding commitment to the project to date. The investment, confirmed in the Chancellor’s Spending Review, is designed to drive 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, based at the St Fergus Gas Terminal, is led by Storegga alongside Shell UK, Harbour Energy, and North Sea Midstream Partners. It aims to capture industrial carbon emissions and store them beneath the North Sea, using 175 miles of repurposed pipeline infrastructure to link central Scotland to offshore storage.

The funding also supports National Gas’s SCO₂T Connect initiative — providing vital infrastructure for CO₂ transport and reinforcing the project’s national impact.

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“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’s strategic value goes beyond emissions reductions; it lays the foundation to protect vital industries, safeguard skilled jobs, and unlock new economic growth,” he added.

According to the government, Acorn and the Viking CCS project in England’s Humber region could collectively capture up to 18 million tonnes of CO₂ annually, contributing meaningfully to the UK’s net zero by 2050 target. This investment is part of a broader £9.4 billion commitment to CCS over the current spending review period, and £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.”

As the UK positions itself as a leader in CCS and industrial decarbonisation, Acorn is seen as a cornerstone project with the potential to drive export-led growth, energy resilience, and a low-carbon economy.

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