UK energy secretary Ed Miliband has signalled Labour could look to fast-track the Acorn carbon capture and storage (CCS) project in Scotland, amid criticism over the party’s “confused” energy transition strategy.
Speaking on Times Radio on Friday, Miliband said he would look at ways to speed up approval for Acorn in a bid to support jobs at the Grangemouth industrial cluster.
The Acorn project is aiming to decarbonise large swathes of Scottish industry by capturing CO2 emissions and storing them under the North Sea.
North Sea operators Shell (LON: SHEL), Harbour Energy (LON: HBR) and North Sea Midstream Partners are backing Acorn, alongside Storegga and a group of industrial emitters known as the Scottish Cluster.
The creation of a net zero industrial cluster in Scotland could bring an estimated £17.7 billion in benefits to the UK economy by 2050.
But the Acorn project is still awaiting UK government funding, while similar CCS schemes in north-west and north-east England are going ahead.
This has led to accusations Acorn is being “snubbed” by Labour, which Miliband has denied.
Miliband said Labour is “determined to have a future” for the Grangemouth site despite the looming closure of Scotland’s only oil refinery and the loss of 400 jobs.
Acorn and Grangemouth
He pointed to the UK and Scottish government jointly funding project willow, which is looking into future possible uses for Grangemouth, as part of that effort.
He also said he would consider an accelerated timeline for Acorn in an effort to support jobs at Grangemouth.
“Carbon capture and storage could be part of it, sustainable aviation fuel could be part of it,” he said.
© PA“There’s huge potential on that site and we are absolutely determined for the sake of that community, the Scottish economy, the UK economy to do that because there’s huge benefits.”
Aberdeen Grampian Chamber of Commerce (AGCC) chief executive Russell Borthwick urged the UK government to ensure Acorn goes ahead.
“The Secretary of State is right to consider an accelerated timeline for Acorn, which is an economic imperative for both the North-east and wider Scottish economy,” he said.
“There is no better opportunity to deliver economic growth and clean power, two stated missions of the government, than progressing the Scottish Cluster.
“Carbon capture technology is game-changing technology which can create tens of thousands of jobs across the country.”
Borthwick said the UK will need to move “much faster” to reach its decarbonisation goals, and called for the government to progress all CCS clusters “at pace”.
However, the Parliamentary Public Accounts Committee (PAC) has called on the government to assess whether its support for CCS in the UK will be affordable for taxpayers and consumers, who face high energy bills and the cost-of-living crisis.
This is despite the National Audit Office deeming funding for UK CCS projects a “risk worth taking” in a report last year.
Meanwhile, Unite general secretary Sharon Graham said: “Workers and their communities are crying out for joined up thinking. It is clear the government’s energy plans do not address major decisions that need to be made now.
“Energy security means that we must not let go of one rope until we have hold of another. But the government has yet to commit to the Sizewell C nuclear power plant or invest in wind manufacture and has so far failed to ensure that Grangemouth will transition to a sustainable aviation fuel (SAF) refinery.
“Despite lots of positive talk the well-paid, skilled jobs in zero carbon energy production supposed to offset the loss of jobs in the North Sea are yet to materialise. New investments are needed now to help drive growth and create these jobs.”
Labour energy strategy ‘confused’
It comes amid continued criticism from the offshore industry in north-east Scotland over the Labour party’s approach to the energy transition.
Industry stalwart and Offshore Energy Group (OEG) chief executive John Heiton told CityAM that he is “confused” by Labour’s growth and energy strategy.
“[The government] is pursuing a confused message to prioritise growth,” Heiton said.
“It is turning off some of the very projects that would produce growth in the next five years, while the Heathrow [runway expansion] would only produce growth in the next 15 to 20 years.”
Flagship policies like GB Energy feel as though they are more about a “slogan” than a clear plan, Heiton added.
“I’m still a bit confused about what they’re going to do,” he said of GB Energy.
“It’s not like there’s a lack of people investing in offshore wind in the UK already.
“I didn’t see a hole that was there for GB Energy to fill.”
Heiton said Aberdeen’s local economy is at risk of being “hollowed out”, as international firms look to relocate operations to cities with ongoing oil and gas projects.
It comes after GB Energy chairman Juergen Maier said a pledge to create 1,000 jobs at the publicly-owned firm could take up to 20 years to achieve.
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