Prime Minister to highlight Scotland’s place in securing Britain’s long-term energy security

‘Greenwashing’, say environmental campaigners

  • Prime Minister visits North East Scotland, highlighting the central role it will play in defending the UK against disrupted global energy supplies.
  • There he will also meet with key figures in the energy sector and will visit critical infrastructure projects which will help grow the economy, reach Net Zero, and deliver the next generation of highly skilled jobs for young people in the region.

The Prime Minister will today confirm that Scotland will continue to be at the forefront of UK Government plans to strengthen the UK’s long-term energy security.

During a visit to the North East of Scotland, the Prime Minister will highlight the crucial role that the region will play in enhancing and delivering on the UK Government’s commitment to reaching Net Zero in 2050 and enhancing long term energy security for generations to come.

The UK is leading international efforts by setting ambitious net zero commitments, ramping up the transition to clean energy, reducing total greenhouse gas emissions by 32% since 2010, whilst bringing down energy bills and supporting households.

It is expected that the UK Government and energy authorities will go further than before in announcing continued decisive action to:

  • Boost the capability of the North Sea industry to transition towards Net Zero;
  • Strengthen the foundations of the UK’s future energy mix;
  • And create the next generation of highly skilled green jobs.

The Prime Minister will also meet with key energy industry figures and companies at the forefront of delivering the UK’s energy needs, as well as the next generation of highly skilled people who are working on the projects of tomorrow.

The UK Government says the package ‘will also underpin that Scotland remains a cornerstone of government plans for an energy-independent UK, as well demonstrating what can be achieved due to the strength and scale of UK collective action, in defending the public against global energy supplies which have been disrupted and weaponised by Putin’.

Environmental campaigners have condemned the plans, however. Friends of the Earth Scotland regards carbon capture and storage (CCS) as an attempt to ‘greenwash’ the oil industry and pointed to the long history of failure of the technology. 

They say that instead of giving more public money to oil firms it should be invested in climate solutions that work today and can improve people’s lives such as public transport and home insulation. 

Shell is a key partner in the Acorn project. Last week the fossil fuel giant announced profits of £3.9billion for just the last 3 months, on top of the £32.2 billion profit in 2022. Despite this vast wealth, the Acorn project appears to be totally reliant on further public subsidy to progress. 

Friends of the Earth Scotland head of campaign Mary Church said: “Carbon capture is a greenwashing tactic by profit obsessed fossil fuel companies to try and keep their climate-wrecking industry in business.

“CCS has a long history of over-promising and under-delivering yet politicians have fallen for the spin rather than face reality that the only solution to the climate crisis is a fast and fair phase out of oil and gas.  

“Funding for the Acorn project would be yet another massive public subsidy to oil companies who have been making billions in profits, while ordinary people are struggling to pay the bills.

“Instead of handing more money to polluters, it is time to redirect that investment to climate solutions that we know can deliver emissions cuts and improve peoples’ lives today – such as improving public transport and insulating people’s homes to help with energy bills.” 

First Minister: ‘Dithering and delay’

First Minister calls for action to end uncertainty on Acorn Project

First Minister Humza Yousaf has called on the UK Government to give the go-ahead for the Acorn carbon capture and storage (CCS) project to enable Scotland to ramp up its transition to clean energy.

On a visit to Peterhead Power Station, the First Minister said that the Scottish Government is wholly committed to supporting the Acorn Project, and urged the UK Government to set out its plans and end uncertainty for investors and stakeholders.

The project, based in Aberdeenshire, would take captured CO2 emissions from industrial processes across the country and store it safely under the North Sea. 

The First Minister added: “Scotland’s net-zero future is being held back by UK Government dithering and delay.

“The Acorn scheme should be given approval now, so that we can take advantage of our unrivalled access to a vast CO2 storage potential and our opportunities to repurpose existing oil and gas infrastructure. CCS will play a pivotal role in achieving a just transition for our workforces, capitalising on existing world-leading skills and expertise to create many good, green jobs in the coming years.

“Despite the UK Government confirming in March that Acorn is ‘best-placed’ to meet the eligibility to be awarded Track-2 status, which would allow access to financial support from the UK Government, they continue to fail to provide a clear timetabled solution for the next stages of the process. This is entirely unacceptable and layers further uncertainty on top of never-ending delays which are impacting investor confidence and which compromise our climate-change commitments and just-transition ambitions.

“Acorn’s target of capturing and storing up to five million tonnes of CO2 annually by 2030 is critical to Scotland’s plans to achieve net zero by 2045, ahead of the rest of the UK. The scheme will also help the UK Government to deliver on its commitments.

“While the UK Government prevaricates, we have already established a £500 million Just Transition Fund for the North East to build on the region’s world-renowned expertise and ingenuity, to create jobs, foster innovation and support the region to deliver a fair and managed transition to net zero.”

Catherine Raw, Managing Director of SSE Thermal, who are part of the Scottish Cluster group of industrial companies backing the capture and permanent storage of CO2 emissions, said: “To unlock the potential of Peterhead and the wider region, it is vital that the Scottish Cluster is brought forward urgently, allowing the development of decarbonisation projects to be accelerated and Scotland’s net-zero ambitions to be met.

“Doing so will not only help us meet our energy goals, it will also support industries and provide a fair and just transition for workers and communities across the North East of Scotland, including at Peterhead.

“SSE have set out plans to invest up to £40 billion in the next decade, including more than £21 billion in Scotland alone. Renewables will be at the heart of that investment but we also recognise the need for flexible generation to provide backup when the wind doesn’t blow and the sun doesn’t shine. Our existing Peterhead station fulfils that role today, playing a critical role in Scotland’s energy system.”

Licensed to Drill

North Sea ‘treasure map’ to grow the economy and unleash the UK’s carbon capture and storage industry

  • Companies licensed to drill in North Sea to report findings to regulator in new powers brought forward in Energy Bill amendment.
  • New powers for regulator will help develop most comprehensive picture yet of UK’s carbon capture and storage potential
  • this will deliver on the Prime Minister’s priorities by helping to attract investment, support as many as 50,000 new jobs by 2030 and grow the economy
  • Energy Bill will also support the scale up of UK’s hydrogen and nuclear power industries

A ‘treasure map’ of what lies beneath the North Sea will be created to help the UK become a world leader in carbon capture and storage.

Companies already at the forefront of this technology and licensed to drill in the North Sea will have to report what they find to the regulator, which will develop the most comprehensive picture yet of the geological area’s make-up.

This information can then be used to unlock the UK’s huge potential by quantifying for investors how much carbon capture and storage could be possible. This could attract more companies to the UK, supporting as many as 50,000 green jobs by 2030, helping to grow the economy and delivering on the Prime Minister’s priorities.

The government intends to bring forward these new powers for the North Sea Transition Authority in an amendment to the Energy Bill, which had its Second Reading in the House of Commons today.

The Energy Bill was introduced to Parliament on 6 July 2022. It will deliver a cleaner, more affordable, and more secure energy system over the long-term for the UK, while liberating private investment in clean technologies.

Secretary of State for Energy Security and Net Zero Grant Shapps said: The UK is in prime position to become a world leader in carbon capture and storage – a whole new industry that could boost our energy security, help cut our own emissions and those of our European neighbours and create thousands of jobs for the future.

“By working with the brightest and best who are already out in the North Sea, we can grow our economy by building the treasure map needed to unlock the full potential of this geological goldmine.”

Minister for the Energy Bill, Nuclear and Networks, Andrew Bowie said: “Russia’s illegal war in Ukraine has laid bare the need to transform our energy system, and our landmark Energy Security Bill will mean homes and businesses across the UK benefit from a cleaner, more affordable and more secure energy system.

“With security at its heart, the Bill is the most significant piece of energy legislation in a decade and puts the UK on the path to cleaner electricity by ramping up carbon storage and our technologies of the future.”

Stuart Payne, North Sea Transition Authority Chief Executive, said: “Carbon storage is essential to reaching net zero, and the industry requires a wealth of reliable information to select sites to store millions of tonnes of greenhouse gases. 

“The NSTA welcomes these new powers to collect this vital data and share it with the industry as it leads the orderly transition and provides thousands of skilled jobs.”

Carbon Capture and Storage involves separating carbon dioxide from industry and storing it safely under the seabed in spaces left by oil and gas extraction. Thanks to the geological make-up of the UK, this country is almost uniquely placed to benefit from this and create a whole new industry.

Estimates suggest that there may be enough space underneath the UK’s oceans – including its old oil and gas fields – to store up to 78 billion tonnes of carbon dioxide – the equivalent to the weight of around 15 billion elephants, and as much carbon dioxide as produced by up to 6 million cars on the road.

As well as helping cut the UK’s own emissions, this potential is believed to be so considerable that this country could also help other nations using carbon capture and storage – including other European countries – by storing their carbon emissions too.

Under plans announced in Parliament today, the government plans to grant the North Sea Transition Authority, as a carbon storage regulator, powers to obtain information and samples from those who have a licence already to store carbon. 

These will give the information needed about the geological features of hidden underground spaces underneath the North Sea that have already been mapped. This will help develop an encyclopaedic knowledge about what lies beneath the waves and confirm the likely scale of the industry this could create, helping to encourage private investment.  

UK government Minister for Scotland John Lamont said: Expanding carbon capture and storage forms a vital part of our Net Zero ambitions. The new measures introduced today will propel that sector forward, while supporting up to 50,000 jobs to benefit Scotland and the whole of the UK.

“Not only will this accelerate our transition to using cleaner, greener energy and enhance our energy security but it will also bring a welcome economic boost to aid our priorities of reducing debt and halving inflation.”

Other forthcoming amendments to the Energy Bill announced by the UK Government today:

  • backing Energy Intensive Industries (EIIs), such as those in the steel sector, by introducing a compensation scheme that will lower the costs they EIIs have to pay to use the electricity grid. This will bring key UK businesses in line with global competitors and help make the UK one of the most attractive places to do business as part of delivering on the Prime Minister’s plan to grow the economy
  • setting out the statutory role of the new nuclear body Great British Nuclear to carry out the long-term mandate the government intends for it in support of the commitment to unleashing the new generation of new nuclear for it to comprise up to 25% of the UK’s energy supply by 2050
  • plans to develop new business models to encourage investment in the transport and storage of hydrogen. This will be key to boosting the UK’s future energy security

Business and Trade Minister Nusrat Ghani said: Energy-intensive industries like steel are hugely important to our economy. This measure will cut costs and help ensure they can bring high-quality jobs and investment into the UK.

“This support will mean that these key industries stay in line with their global competitors, helping deliver on the Prime Minister’s priority to make the UK the most attractive place to do business and grow our economy.”

The Energy Bill first entered Parliament in July last year and commits to providing a cleaner, more affordable, and more secure energy system by:

  • leveraging private investment in clean technologies
  • reforming the UK’s energy system so it is fit for the future
  • ensuring the safety, security and resilience of the UK’s energy system

‘Legacy of Failure’ of carbon capture highlighted by climate campaigners

  • ++ Timeline shows two decades of failures on carbon capture technology
  •  ++ Instead of subsidising the Acorn project, campaigners argue public money would be better spent on public transport, home insulation and climate solutions that work today.
  •  ++ Technology labelled a ‘dangerous distraction’ that risks prolonging life of fossil fuel companies

Climate campaigners have highlighted a ‘legacy of failure’ on controversial carbon capture technology as the UK Government prepares to make a decision on investing more public money in the Acorn project in the North East of Scotland.

It has been almost 20 years since the Scottish Carbon Capture Society was formed but the industry has captured and stored zero tonnes of carbon in that time. In the intervening two decades, there have been failed proposals for carbon capture projects at Peterhead and Longannet fossil fuel power stations and at the Grangemouth industrial site.

The UK Government said they will make an announcement on support for further carbon capture and storage (CCS) projects in Spring 2023. Acorn failed to get ‘Track 1’ status and a share in £1 billion funding from the UK Government in October 2021.

Politicians and companies have been pleading for more public money for the Acorn project, despite Acorn partners Shell making $40 billion in profit in 2022, and Harbour Energy making $2 billion in profit before tax in the first half of 2022. The Acorn project appears to be totally reliant on further public subsidy to progress.

Carbon capture technology has been identified as a ‘dangerous distraction’ from the real, working climate solutions of rapidly reducing our use of fossil fuels through increased home insulation and the expansion of affordable and accessible public transport.

Campaigners say that both Governments should be investing in these measures that can improve people’s lives and cut emissions now rather than subsidising carbon capture which will only benefit hugely profitable fossil fuel companies.

The Scottish Government’s plan to meet their climate targets is dangerously over-reliant on carbon capture and storage. Ministers were warned by Holyrood committees, the UK Climate Change Committee and climate campaigners that they need a ‘plan B’ for when carbon capture fails to deliver. The Government has already admitted that carbon capture will not deliver in time to help meet 2030 targets but has neglected to act to address the shortfall in climate action.

Friends of the Earth Scotland climate campaigner Alex Lee said: “The story of carbon capture is a long and inglorious legacy of failure. The UK Government must not continue to throw public money at fossil fuel companies to try and prolong their climate-wrecking industry through the pipe dreams at Acorn or anywhere else.

“The only successful capture by this industry is public money, because it is certainly not capturing carbon. It’s long past time to stop subsidising some of the most profitable polluters on the planet.

“After nearly 20 years of industry promises and a complete failure to deliver, it is time to redirect that investment and energy to climate solutions that we know can deliver emissions cuts and improve peoples’ lives today, rather than falling for eternal promises of it just being around the corner.

“Scottish Ministers need to wake up and realise that carbon capture and these other so-called negative emissions technologies are a dangerous distraction from the urgent and necessary working of cutting emissions at source and delivering a just transition away from fossil fuels.”

Timeline of CCS failure

2005 – Scottish Carbon Capture Society founded
2007 – UK Government launch CCS industry demonstration project competition aiming to be operational by 2014.
2007 – BP pull out of Peterhead CCS project
2010 – Scottish Government CCS Road Map published. Existing coal stations would have to fit CCS no later than 2025 with a 100% capture rate required on new stations.
2010 – UK Government makes £1 billion available in capital investment for a CCS project.
2011 – UK Government pulls out of negotiations with Scottish Power & Shell because CCS project would cost over £1 billion.
2012 – UK Government launches second CCS development competition.
2015 – Peterhead CCS failure round 2. UK Government announced the £1 billion capital funding for the second competition was no longer available.
2017 – National Audit Office reveals £168million spent on failed CCS competitions including Peterhead.
2020 – Scottish Government Climate Change Plan update pledges approx 19% of efforts to meet 2030 climate targets will be achieved by Negative Emissions Technologies (e.g.CCS) and approx 25% of reductions by 2032.
2021 – Scottish Government’s Monitoring Report admits that NETs “ will not deliver at the pace assumed in the Climate Change Plan update”
2022 – Acorn cluster fails to meet its previously predicted timeline saying it would have drilled its first well in the North Sea by 2022.
Feb 2023 – One year since SSE & Equinor application to Scottish Government for new gas power station at Peterhead, with the claim CCS will be added to plant. Application has not progressed.
2023 – Acorn cluster fails to meet its previously predicted injection of 200 kilotonnes of carbon into sea beds. Currently this project has limited funding and no planning permission.

Fracking hell: new report ignites energy debate

 ‘No place for fracking in Scotland’s energy future’ – Patrick Harvie

frackScotland is sitting on enough shale oil and gas to meet our energy needs for the next half-century, according to a new report by the British Geological Survey – but environmentalists are warning that ‘fracking’ to get at shale gas deposits would have serious consequences for local communities.

The British Geological Survey’s report of the resources in the Midland Valley, Scotland, suggests a ‘modest’ amount of gas and oil in place. The central estimate of shale gas in place is 80 trillion cubic feet, the central estimate for shale oil in place is 6 billion barrels of oil.

However ‘modest’, the Department of Energy and Climate Change believes ‘ the complex geology of the area and historic mine workings means that exploratory drilling and testing is even more important to determine how much can be recovered.’

Business and Energy Minister Michael Fallon said: “Making the most of Britain’s home grown energy is crucial to keep job and business opportunities, widen tax revenues and reduce our reliance on foreign imports.

“We know that shale gas alone won’t be able to supply all of our energy needs, but the environmentally responsible exploration of shale gas could contribute to our energy mix.

“Only the broad shoulders of the United Kingdom can attract investment in new energy sources and maintain the UK’s position as one of the world’s great energy hubs – generating energy and generating jobs.

“The UK’s energy security is among the best in the world, backed by a large consumer and tax base that can afford to support our world-leading energy industries and make us such an attractive place to invest.”

Professor Mike Stephenson, Director of Science and Technology at the British Geological Survey said: “The central estimate of shale gas in place is 80 trillion cubic feet and the central estimate for shale oil in place is 6 billion barrels of oil but reserves cannot be calculated at this stage before drilling and testing take place. The Midland Valley of Scotland has complex geology and a relative lack of data compared to the previous DECC-BGS Bowland-Hodder and Weald Basin studies”

However Green MSP Patrick Harvie says the study by the British Geological Survey shows that ‘potentially modest’ reserves of shale oil and gas prove that  fracking shouldn’t figure in Scotland’s energy future.

He pointed out that the estimated 80 trillion cubic feet of shale gas in central Scotland is just six per cent of the reserves thought to be present in northern England and said a huge swathe of Scotland – from Argyll to Aberdeenshire and from Ayrshire to East Lothian – has been earmarked as ‘ripe for fracking’ by the UK Government.

Mr Harvie, Green MSP for Glasgow and Co-convener of the Scottish Greens, said: “This study puts paid to all the hype we’ve been fed about a shale bonanza. Not only would fracking divert attention from our undoubted renewables potential but any economically viable extraction would be modest and short-term. Greens want a long-term energy plan for Scotland, and we have abundant clean sources to do this.

“As communities across Scotland realise the risk to their local environments from the prospect of fracking, and as climate science tells us we must start to leave unburnt fossil fuels in the ground, it’s clear that any such developments will face strong opposition.

“It all serves as a reminder that Westminster controls energy policy in Scotland. The chance to pursue clean, long-lasting power rather than polluting, finite fuels is a compelling reason to vote Yes in September.”