The UK Government remains supportive of the Acorn carbon capture project, a minister said as he responded to claims the Chancellor is reportedly “going cold” on the idea.
Energy minister Michael Shanks said the project based in St Fergus, Aberdeenshire, will have a “crucial” role in removing the carbon emissions of industries which are difficult to abate.
The Acorn project aims to use existing pipelines to transport industrial carbon emissions for storage under the North Sea.
It was placed on a “track two” reserved list for future funding from the UK Government, but business leaders are calling for it to be treated as an immediate priority.
Last week a cross-party group of 71 MSPs and 10 MPs signed a joint letter urging Chancellor Rachel Reeves to deliver the money needed to progress the scheme.
During an appearance at Holyrood’s Economy Committee on Wednesday, Mr Shanks was asked about the UK Government’s stance on carbon capture.
SNP MSP Michelle Thomson said there have been reports Ms Reeves is “going cold on Acorn specifically” while proceeding with similar projects in Teesside and Humberside.
Mr Shanks said: “The Government is supportive of the Acorn project, the Secretary of State for Energy has been really clear in Parliament that we see it as a crucial part of how we deliver our decarbonisation journey for Scottish industry and energy, and it is a really important investment proposition.
“But it is obviously a significant amount of public money and it’s right that it’s for the Spending Review to make that decision.”
He said Acorn is a “serious” part of his department’s bid in the upcoming Spending Review.
Mr Shanks also said the Scottish Government’s ban on new nuclear power north of the border has been “hugely problematic”.
The Economy Committee also discussed the recent closure of the Grangemouth oil refinery and attempts to find new low-carbon businesses for the site.
The refinery was the only one operating in Scotland and is now becoming an import terminal for finished fuels.
Camilla Pierry, deputy-director for energy security in the UK Government, said “robust” plans are in place and there is not expected to be any short-term impact on fuel supplies or fuel security in Scotland.
