Lead developer for Acorn carbon capture site to sell stake

The lead developer for the planned Acorn carbon capture site in Scotland’s north east has announced it is selling its stake in the project.

Storegga said it will sell its interest in the carbon capture and storage (CCS) site in St Fergus, Aberdeenshire.

The proposed Acorn scheme would use existing pipelines to store carbon emissions under the North Sea.

During the summer, Chancellor Rachel Reeves announced investment of £200 million in the project.

A Storegga spokesperson said: “Storegga recently completed a strategic review of its business, capital requirements and future structure.

“As part of this, we are progressing a structured sales process for our portfolio of assets, including the sale of our interest in the Acorn CCS project.

“With Acorn approaching a more capital-intensive phase, and with both the UK and Scottish governments signalling the importance of its timely delivery, we have concluded that a new long-term owner would be better placed to take the project forward.

“This step reflects the intentions of our existing shareholders, who have supported the company in achieving several milestones to date and are now making way for new ownership to accelerate the next phase.

“While this process is under way, work continues across all of our projects to maintain momentum and ensure they remain well positioned for a smooth transition to new long-term owners.”

Speaking to BBC Scotland during a visit north of the border on Thursday, Prime Minister Sir Keir Starmer said: “We remain absolutely committed to carbon capture, it’s very important for the future, so notwithstanding developments, I can be absolutely clear… that the Government remains absolutely committed to carbon capture and making sure that we make a real success of this.”

A UK Government spokesman said: “This is a commercial decision for Storegga Ltd. UK Government remains committed to the Acorn project.”

Sir Ian Wood, chairman of the development agency ETZ ltd, said: “This news is deeply concerning for Scotland and the UK’s energy transition, and I urge the UK and Scottish governments to leave no stone unturned in their efforts to secure the future of Scotland’s only carbon capture cluster.

“The Acorn project is a cornerstone of Scotland’s energy transition.

“Its strategic value lies not just in the thousands of jobs it will safeguard and create, but in its enormous potential to unlock further investment, drive innovation, and build a viable path to decarbonisation.”

Friends of the Earth Scotland’s senior climate campaigner Alex Lee said: “Storegga’s exit is a clear sign that even the biggest champions of carbon capture have seen the technology doesn’t make economic sense and are washing their hands of it.

“This is a huge embarrassment for both the UK and Scottish governments, who have staked their climate credibility on CCS and promised £280 million of supposedly scarce public money into a technology that has repeatedly been proven to fail.”