Swinney ‘deeply concerned’ by Acorn carbon capture decision

John Swinney has said he is “deeply concerned” by the decision to cancel grant funding for an “absolutely central” carbon capture and storage (CCS) facility. The Acorn project in Aberdeenshire was due to receive £200 million in grant funding from the UK Government , but Chancellor John Healey changed the commitment to mean the UK Government would offer the same amount in loans or receive an equity stake in the project. UK ministers were accused of causing confusion over the funding this week, with Chief Secretary to the Treasury Emma Reynolds telling the BBC: “There hasn’t been a cut to the £200 million, I can reassure you that that commitment stands.

“That is the grant funding, but there could well be loans or equity stakes taken, because we will need probably additional funding to secure the future of this project.” Speaking to the Press Association on Friday, the First Minister voiced his opposition to the decision. “I raised the issue of Acorn and my concerns about the fact that I think further uncertainty has been created for Acorn,” he said. “What I understand the position to be is the UK Government has decided not to offer grant funding to the Acorn project, but instead to do that through financial transactions.

“That creates more risk, that creates more uncertainty about the project. “The very act of changing the funding mechanism does that, and I am deeply concerned about that because I think the Acorn project is an absolutely central project in relation to our work on climate action and it’s essential that it’s taken forward as part of that agenda and as part of encouraging the reindustrialisation of Scotland.” A Department for Energy Security and Net Zero spokesperson said: “We recognise Acorn’s role in supporting good, well-paid jobs and reindustrialisation in Scotland.

“Acorn will continue to receive its existing grant funding until the end of the year. “Future support will be through loans or equity stakes that need to see the taxpayer receive a return. “An equity-style investment would also allow for a closer partnership between the Government and Acorn, allowing us to drive a better outcome for taxpayers and the project.”