UK changes Acorn carbon capture project funding to loans and equity

Summarised from 2 outlets · 4 reports · Updated 2 Nov, 15:44 · Archive

The UK Government has changed funding for the Acorn carbon capture project in Aberdeenshire from grants to loans or equity stakes.

The UK Government has converted the Acorn carbon capture project's funding from £200 million in grants to loans or equity stakes, after Chancellor John Healey changed the commitment in the Budget. The project, which could support about 15,000 jobs at its peak, proposes storing emissions from across Scotland under the seabed of the North Sea.

Scotland's First Minister John Swinney said he was 'deeply concerned' about the change. The SNP has described the move as a 'betrayal' and called for the government to use £5.1 billion in forecast oil and gas tax receipts over the next year to fund the project. Dave Doogan, the SNP's Westminster leader, argued that North Sea tax receipts should be invested in Scotland, particularly at the Acorn site in Peterhead.

UK Government energy minister Martin McCluskey said it had been necessary to 'reprioritise' budgets to prioritise investing in defence. He said loans and equities offer better value for the taxpayer and could allow the government to take a stake in the project, which would give a return. Some of the original £200 million grant funding has already been drawn down by the developers and remains in place.

UK changes Acorn carbon capture project funding to loans and equity — Image: Evening Standard

Comments (0)

How it is being reported

Use £5bn oil and gas revenues to fund Acorn carbon capture – SNPThe project was due to receive £200 million in grant funding from the UK Government but Chancellor John Healey changed the commitment in the Budget.Evening Standard · 2 Nov, 09:39
Use £5bn oil and gas revenues to fund Acorn carbon capture – SNPThe project was due to receive £200 million in grant funding from the UK Government but Chancellor John Healey changed the commitment in the Budget.Evening Standard · 2 Nov, 09:11
Use £5bn oil and gas revenues to fund Acorn carbon capture – SNPThe project was due to receive £200 million in grant funding from the UK Government but Chancellor John Healey changed the commitment in the Budget.Independent Business · 2 Nov, 09:11
UK Government wants Acorn carbon capture and storage project success – ministerThe project was due to receive £200 million in grant funding from the UK Government.Evening Standard · 1 Nov, 11:14

In this story: Acorn · UK Government · Aberdeenshire · John Swinney · John Healey · Martin McCluskey · Dave Doogan · North Sea

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log