The ambitious project to provide world-class, safe carbon storage capacity in the North Sea will receive £31million UK government funding, the UK Business and Energy Secretary has announced.
The St Fergus scheme is one of nine green tech projects across the UK benefiting from a pot of £171million UK government funding to cut emissions from industry.
The funding will support the development of Scotland’s Net Zero Infrastructure project to deliver important offshore and onshore engineering studies connecting industrial sites between Aberdeenshire and the Central Belt with access to safe carbon storage resources offshore in the North Sea.
This project will provide a significant boost to the North East’s fast-growing low carbon credentials, paving the way for onshore and offshore developments totalling in excess of £3billion, helping Scotland transition away from oil and gas and creating and securing thousands of jobs by 2050.
The latest announcement from the UK Government follows additional private investment, announced by developer Pale Blue Dot on March 4, in the Acorn CCS and Hydrogen project at St Fergus Gas Terminal.
Scottish Conservative MP for Banff and Buchan David Duguid said
This is a very welcome investment announcement, demonstrating once again the UK Government’s commitment to Energy Transition in the north east of Scotland.
This funding will help to realise the carbon capture project based in St Fergus and provide a huge boost towards reaching net zero carbon emissions.
The UK Government believes this shift to a greener economy has the potential to create tens of thousands of sustainable jobs and opportunities for people here in Aberdeenshire.
It also builds on the exciting news from Pale Blue Dot earlier this month of new private investment into the Acorn CCS and Hydrogen project at St Fergus.
This is a much needed and very welcome announcement and a clear demonstration of the UK Government’s commitment to our local area, our local economy and local jobs.