CONSERVATIVE ministers are coming under fire after the North East missed out on funding for a pioneering clean energy scheme.
Greg Hands, the UK Government energy minister for announced today that a carbon capture, utilisation and storage (CCUS) scheme in Scotland was not being taken forward with two sites in the north of England being chosen instead.
The foundation of the proposed Scottish scheme was the Acorn project at St Fergus gas terminal close to Peterhead. Mr Hands said the Scottish bid will be a “reserve” and used as a “backup” in case another site is needed.
The SNP and the Scottish Conservatives have been critical of the decision, with the nationalists saying Tory ministers have delivered “let down after let down” to Scotland’s hopes of leading the way on carbon capture.
They have also said the Conservatives are more intent on retaining their seats in the so-called ‘red wall’ in the north of England than helping Scotland, in particular the North East, with a ‘just transition’ away from oil and gas.
They argue that Aberdeenshire would be the ideal location for a carbon capture facility, as it would provide jobs and economic support for the area.
Stephen Flynn MP, the SNP’s business and energy spokesman, said the decision represented a “complete betrayal of the North East”.
He said: “This inexplicable decision shows the Tories are guilty of empty words and broken promises on ensuring a just transition for Scotland's communities. The Tories pulled the plug on £1billion of carbon capture investment for Peterhead in 2015 and now they've repeated the trick again.
"It beggars belief that at the very moment Tory ministers are being challenged to match the Scottish Government's £500million investment in a just transition - they are instead sticking two fingers up to Scotland and withdrawing investment
"The North East of Scotland is the home of the offshore industry and the obvious location for a carbon capture project. How can we have a ‘just transition’ if the Tories aren’t willing to put the North East of Scotland first?
"It's clear the Tories have put holding seats in the 'red wall' of northern England ahead of saving jobs in Aberdeen and the North East."
Scottish Conservative MSP Liam Kerr, the party’s energy spokesman, described the decision as “disappointing”.
He said: “It’s obviously disappointing the Scottish Cluster is not in a higher position during the first stage.
“Support to develop CCUS technology is vital for the future of the North Sea energy industry.
“The Scottish Conservatives have been pushing hard for the North East to be at the forefront of CCUS.
“That will not change and it still will be a UK and world leader.
“Looking to track two within this decade, we will redouble our efforts with the UK Government, which has been the only one to acknowledge the strengths of Scottish CCUS, especially since the Greens and SNP formed their coalition of chaos.
“The Greens would scrap it all today if they could.”
Minister Hands said in a written statement to parliament today that the two schemes chosen would be “taken forward” into negotiations, adding: “If the clusters represent value for money for the consumer and the taxpayer then subject to final decisions of Ministers, they will receive support under the government’s CCUS Programme.”
He added: “We are also announcing the Scottish Cluster as a reserve cluster if a back-up is needed.
“A reserve cluster is one which met the eligibility criteria and performed to a good standard against the evaluation criteria.
“As such, we will continue to engage with the Scottish Cluster throughout Phase-2 of the sequencing process, to ensure it can continue its development and planning.
“This means that if government chooses to discontinue engagement with a cluster in Track-1, we can engage with this reserve cluster instead.”
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