Is carbon capture and storage (CCS) in Scotland's future uncertain? This technology has long been hailed as a key solution to tackling our toughest greenhouse gas emissions. But is the dream fading? Let's dive in.
The Acorn CCS project in Aberdeenshire, Scotland, is facing an uncertain future, according to some experts. Several hurdles are in the way, including technical issues with potential storage sites, the loss of major industrial facilities, and funding challenges.
One of the main players, Storegga, is putting its share up for sale. However, project leaders say this isn't a sign of bigger problems.
Adding to the situation, the North Sea Transition Authority (NSTA) is opening up new licenses for storing carbon dioxide in the seabed. The second round of licensing offers 14 new locations in both Scottish and English waters, with a storage capacity of 2 gigatonnes of CO2.
The Challenges for Acorn
The Acorn project aims to clean up Scotland's high-polluting industrial sites by capturing emissions and transporting them through old gas pipelines. The project has primarily focused on the Grangemouth and Mossmorran sites to capture carbon dioxide.
However, the Grangemouth refinery has shut down, and the chemical works at Mossmorran will close in the new year.
Professor John Underhill from Aberdeen University's Energy Transition Institute believes these closures significantly reduce the amount of carbon dioxide available from Scottish sites. He also notes that Storegga's move to reduce its stake suggests that investor confidence may have waned.
Professor Underhill believes that CCS could and should work if done properly, as many other UK sites are ideal for CO2 storage. But the Acorn project has faced geological and engineering challenges.
Who's Involved and What They Say
The Acorn project is jointly owned by Storegga, Shell, and Harbour Energy, each with a 30% stake, and North Sea Midstream Partners, holding the remaining 10%. Shell has confirmed its continued involvement and has no plans to sell its stake.
Storegga insists that its decision to seek a buyer is unrelated to the project's viability. The Department for Energy Security and Net Zero (DESNZ) also believes the decision won't affect the project's commercial prospects.
A DESNZ spokesperson stated that they are working with the Scottish government and industry to secure a buyer and unlock the site's potential for job creation and industrial renewal in Scotland.
The identified storage sites focus on the depleted Goldeneye gas field, around 60 miles northeast of Aberdeen, already connected by pipeline to the St Fergus gas terminal in Aberdeenshire.
Acorn also explored two neighboring storage sites, one of which was ruled out for geological reasons. The other site's size was reduced by about a third due to unsuitable well plugging for CCS.
But Nic Braley, Acorn's general manager, says the remaining areas still offer ample space for carbon dioxide storage. He sees the project as vital for decarbonizing Scottish industries and supporting future growth in sustainable aviation fuels. He believes they can generate revenue from overseas and maximize the benefits of a UK national resource, so he doesn't see failure as a risk.
The Energy Transition
Acorn says the now-closed Grangemouth refinery was never considered a significant source of carbon dioxide for the project, with the neighboring petrochemical works being the larger contributor. Many other potential emission sources have been identified, with some emissions even able to be brought to the northeast by ship.
Apollo Engineering in Aberdeen has shifted from oil and gas to low-carbon energies, including carbon capture technologies, which now make up about 50% of their business. They, like many in the supply chain, see CCS as an essential part of the energy transition and have been working on port infrastructure to handle carbon dioxide shipments.
Co-founder Ryan Menzies would be disappointed if the Acorn project failed and hopes CCS can drive expansion in his own business. He believes they have the necessary skills and supply chain to do the work and that it is essential for achieving net-zero and maintaining the UK's industrial competitiveness.
Funding and the Road Ahead
In the spring, the Chancellor Rachel Reeves announced £9.4 billion in capital funding for the first two CCUS projects in England. During a visit to St Fergus, the energy security minister Ed Miliband confirmed that £200 million would be allocated to the Acorn project.
Professor Stuart Haszeldine, a carbon capture and storage expert at Edinburgh University, believes Acorn is one of the best-evaluated projects globally but is struggling with the speed at which the UK government is making funding available. He noted that the developer wants to find more money to stay in the market.
However, the UK government says the money won't be available until the 2026/27 financial year. They add that this is standard procedure, as it's when the spending period begins, and it is not a delay.
The Climate Change Committee has calculated that CCUS is a vital component in the drive to decarbonize the UK by mid-century.
Controversy Alert: Some environmental groups, like Friends of the Earth Scotland, argue that CCS is an unproven technology that allows the oil and gas industry to continue as usual.
For businesses in northeast Scotland, where oil and gas production peaked 25 years ago, low-carbon technologies like CCUS and hydrogen are seen as essential for ensuring an energy transition doesn't lead to industrial wastelands.
The Acorn project was named to create 'mighty oaks.'
But here's the kicker: After years of nurturing the seed, it often feels like it hasn't left the tree nursery.
What do you think? Is CCS a necessary step, or a distraction? Share your thoughts in the comments!
