The UK Government has officially pledged £200 million (US$271 million) to the Acorn Carbon Capture and Storage (CCS) cluster in Scotland, a long-anticipated move hailed as a critical step toward establishing a national carbon storage infrastructure and delivering a just transition for industrial regions facing fossil fuel phaseouts.
The announcement, made in the wake of Chancellor Rachel Reeves’ first spending review, forms part of a broader £9.4 billion CCS investment package and confirms the full sum requested by the Acorn consortium. The funding will be used to prepare the project for delivery, subject to final business case approval, with a final investment decision (FID) expected in the next three to four years.
Second Phase CCS: Acorn and Viking on the Frontline
The Acorn cluster, led by Storegga, joins England’s Viking project in Humberside as the UK’s second-phase CCS hubs. Together, the two are projected to capture and store up to 10 million tonnes of CO₂ annually by 2030, roughly equivalent to 3 million gas-powered cars taken off the road.
Unlike earlier clusters in Teesside and Merseyside, which received funding under the government’s first CCS phase (£22 billion), Acorn and Viking are seen as strategically vital to reaching the UK’s legally binding net-zero target by 2050—particularly for Scotland and industrial areas in the north of England.
Pipeline to the North Sea: How Acorn Works
The Acorn project leverages existing North Sea gas infrastructure, with new carbon capture facilities to be built across Scotland’s central belt, home to CO₂-intensive industries. Captured emissions will be transported:
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Via 280 km of repurposed gas pipelines to the St Fergus gas terminal in Aberdeenshire.
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Then offshore using the Goldeneye pipeline to depleted oil fields in the North Sea, notably the Acorn and East Mey storage sites, where CO₂ will be injected for permanent geological storage.
This use of legacy fossil fuel infrastructure gives Acorn a cost and engineering edge over newer CCS sites that require building transport and storage from scratch.
Powerhouse Backing and International Links
Acorn is developed by Storegga, a Scottish CCS specialist backed by global investors, including:
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Mitsui (Japan)
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Snam (Italy’s state gas operator)
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ADNOC (Abu Dhabi National Oil Company)
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Private equity funds
The project also includes energy majors Shell, Harbour Energy, and North Sea Midstream Partners as technical and commercial partners. Early-stage support was provided by the EU’s Connecting Europe Facility in 2020—highlighting the project’s international importance.
“This milestone is key not only for Acorn but for establishing Scotland’s essential CCS infrastructure needed to grow and scale the UK’s wider carbon capture and storage industry,” said Storegga CEO Tim Stedman.
He noted that engagement with government would now focus on ensuring a robust regulatory and funding framework to build a “world-leading UK CCS sector.”
Jobs, Grangemouth, and the Just Transition Challenge
Supporters have touted Acorn as a lifeline for workers across Scotland’s energy transition regions, particularly as the Grangemouth refinery—one of the country’s largest industrial employers—prepares to shut down at the end of June 2025.
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18,000 North Sea jobs are projected to be safeguarded by Acorn’s development.
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However, trade unions warn of a mismatch between the closure of legacy sites and the timeline for CCS project delivery.
Sue Ferns, senior deputy general secretary at Prospect, said the funding was a “welcome” step:
“New investment is vital to support jobs and the development of new technology in Scotland, the Humber and other industrial heartlands… These projects can not only help us to hit our emissions targets but will also play an important role in a just transition in the North Sea.”
Still, questions remain about how quickly replacement industries will be brought online. A March report on Project Willow, the regeneration plan for Grangemouth, suggested future activity might include plastics recycling and bio-feedstock production—both carbon-intensive processes that could directly benefit from Acorn’s CCS capacity.
Long Road Ahead, But Foundations Are Set
Though a final green light won’t come for several years, the UK government’s full funding commitment signals that Acorn is moving from the margins to the mainstream of UK decarbonisation planning.
For Scotland, the project offers a tangible pathway to retain energy sector expertise, while supporting industrial decarbonisation, safeguarding jobs, and contributing to net-zero ambitions—all within the broader context of North Sea energy transition.
