UK Government Commits £200 Million to Acorn CCS Project

In a bold move underscoring the UK’s climate ambitions, Energy Secretary Ed Miliband has confirmed a £200 million investment to kick-start one of Britain’s most significant carbon capture initiatives, Scotland’s long-awaited Acorn project.

“This government is putting its money where its mouth is,” Miliband declared during a visit to the Peterhead site in Aberdeenshire, where Acorn will be based. For years, the project had been stuck in limbo, acknowledged as vital by scientists and Scottish leaders alike but repeatedly passed over for funding. That’s now changed.

With this funding, Westminster is fully meeting Acorn’s request for development capital, marking the first time any government has backed a UK carbon capture scheme with such substantial financial firepower. The project will collect carbon emissions from sites across Scotland and store them deep beneath the seabed of the North Sea.

But that’s not all. Alongside Acorn, the government is also throwing its weight behind the Viking Carbon Capture and Storage (CCS) project in the Humber, a region known for its heavy industry and high emissions. Together, these two ventures are expected to deliver not just environmental gains but a powerful economic ripple effect.

Industry forecasts suggest that Acorn could create around 15,000 jobs at its peak. Viking, meanwhile, might generate as many as 20,000. We're talking about thousands of roles, many of them highly skilled, spanning everything from engineering and pipeline construction to digital infrastructure and long-term maintenance.

Acorn's plan? It includes a 200-mile pipeline network linking the Grangemouth industrial cluster to the storage site in Peterhead. Approximately 175 miles of old gas pipelines will be retrofitted, with an additional 35 miles of new infrastructure to be constructed. The goal: move carbon from the heart of Scotland’s industrial belt straight to offshore reservoirs.

That pipeline could be a lifeline for Grangemouth itself, which has faced an uncertain future following the recent loss of 400 jobs at its former oil refinery. Carbon capture, for many in the area, isn’t just about net zero—it’s about job security, industrial relevance, and keeping the lights on in a changing energy economy.

Rachel Reeves, the Chancellor, had hinted at support for Acorn during her recent spending review. However, she hadn’t specified a figure. Miliband’s visit and confirmation of the £200 million investment delivered the follow-through.

Yet, not everyone is cheering. Environmental campaigners, including Friends of the Earth, argue that the funding would have a greater impact elsewhere, namely, in public transport upgrades, energy efficiency programmes, or retraining oil workers for renewable energy. To them, carbon capture is a risky bet. Expensive, uncertain, and potentially a distraction from faster, proven solutions.

Still, for Westminster, the logic is clear: invest in technologies that keep industrial regions alive while reducing emissions. As climate deadlines loom and fossil fuel dependency remains a reality, projects like Acorn and Viking are shaping up to be a key part of the UK’s energy transition strategy.