Source · Select Committees · Scottish Affairs Committee

Recommendation 10

10 Accepted

Delays to decision making around cluster sequencing and the Acorn Project are disappointing.

Conclusion
Delays to decision making around cluster sequencing and the Acorn Project are disappointing. But we noted the positive comments on CCUS from the UK Minister. Furthermore, such delays lead to an even further deficit in carbon capture facilities in Scotland and the ultimate result is a prolonged period when carbon continues to be released at avoidable levels. (Paragraph 53) Hydrogen and carbon capture in Scotland 47
Government Response Summary
CCUS is a priority and the government is progressing at pace with a £20 billion funding package, launching the CCUS Track-2 process and recognising the potential benefits of the Scottish cluster, to which over £40m in development funding has been allocated.
Government Response Accepted
HM Government Accepted
The following is a combined response to recommendations 9, 10 & 11: CCUS is a priority for the UK Government and we are progressing at pace. The £20 billion funding package announced on 15 March 2023 is unprecedented and demonstrates our strong commitment to delivering CCUS in the UK. It will put us on track to store 20-30 million tonnes of CO2 a year by 2030 whilst helping secure long-term energy security and creating skilled jobs. Our Powering Up Britain Plans, published on 30 March, continue UK leadership in securing the economic benefits of the energy transition, including through major investment in CCUS. We remain committed to helping all areas of the UK to decarbonise as we work to reach net zero emissions by 2050, and we are clear that CCUS will continue to play a key role in this process. On 30 March, we launched the CCUS Track-2 process and at this stage are seeking to identify two transport & storage (T&S) systems. We announced Acorn T&S system as one of the leading contenders for Track-2. We are testing our view that Acorn (alongside Viking) is best placed to deliver on the objectives for Track-2, by allowing other T&S systems the opportunity to express an interest (EoI) in being considered for Track-2. The EoI period closed on 28 April 2023 and we intend to provide an update on next steps for Track-2 in the summer. We recognise the potential benefits of the Scottish cluster and the role it could play in industrial decarbonisation in Scotland. The cluster has been allocated over £40m in development funding by government in recent years. The breakdown of this funding is: • £31.3m from the Industrial Decarbonisation Challenge, for onshore and offshore FEED studies; • £9.3m of innovation funding under the CCUS Innovation, Advancing CCS Technologies (ACT) and Hydrogen Supply programmes; • £250k for the development of Storegga’s ‘Dreamcatcher’ Direct Air Capture plant.