MP hails Prime Minister’s visit to St Fergus as Rishi Sunak announces Acorn Project for Track 2

David Duguid MP has hailed Rishi Sunak's visit to St Fergus as the Prime Minister announced the selection of the Acorn Project as one of the four carbon capture utilisation and storage (CCUS) clusters to be delivered in the UK by the end of this decade.

The Prime Minister was also on hand to underline his backing for the North Sea oil and gas industry by announcing that hundreds of new licences will be granted as part of a drive to make Britain more energy independent.

At St Fergus Gas Terminal near Peterhead, Mr Sunak spoke of the importance of Acorn for Scotland and the wider UK to reach net zero targets. He also met the developers which included Dr Nick Cooper, Chief Executive Officer of Storegga and Simon Roddy, UK Upstream Vice President for Shell.

Storegga estimates around 21,000 jobs will be supported at peak of the project, which is partnered with Shell, Harbour Energy and North Sea Midstream Partners.

David Duguid at St Fergus today with Prime Minister Rishi Sunak and Shell’s Simon Roddy

Banff and Buchan MP David Duguid, who welcomed the Prime Minister to the terminal, said: “I was delighted to welcome the Prime Minister to St Fergus in my constituency to deliver this tremendous announcement which will bring unprecedented benefits to the north-east.

“The Prime Minister knows I have campaigned for this project since I was first elected six years ago and it was great he acknowledged this work.

“I have been working closely with the developers throughout this project and it was pleasing to be able to be there today with them and the Prime Minister to share this significant milestone and to discuss the next steps.

“Throughout the journey to get here, the SNP have repeatedly tried to talk down this project and wanted people to believe Acorn wasn’t going to happen when it absolutely was.

“Humza Yousaf has yet to correct the record from when he claimed the UK Government had 'not spent a penny' on this project - despite more than £40 million of UK funding already on the Scottish Cluster even before today's announcement.

“This is particularly galling since the SNP have never delivered on the £80 million of Scottish Government funding they said was 'on the table' but has never materialised.”

On the importance of Acorn, Mr Duguid said: “Acorn is a critical part of the UK’s net zero plans for a number of reasons. Crucially, it’s the only CCUS cluster in Scotland and there are also plans for a new CCS power station in Peterhead.

“Currently, Peterhead is the only dispatchable thermal power station north of Leeds and is a key source of base load provision for when the wind’s not blowing and the sun’s not shining - particularly important while the SNP continue to deny development of new nuclear.

“I also welcome today's announcement of new North Sea oil and gas licenses which also goes to show the Conservative UK Government's commitment to energy security and to support the jobs, skills and supply chain that must be maintained to help deliver the energy transition to net zero.”

Andrew Bowie, West Aberdeenshire and Kincardine MP, who was also at St Fergus, added: “The Prime Minister has reaffirmed this Conservative government's unwavering support for north-east energy.

“These announcements guarantee that oil and gas, renewables, and the technologies which underpin net zero, will have a long future here.

“New oil and gas rounds will fulfil the UK's energy independence away from relying on imports. Vitally it will help 70,000 people transition into high-value, highly-skilled jobs which will pave the way to carbon net zero. Getting Acorn online is going to create thousands of jobs.

“The Prime Minister's vision is in stark opposition to the job-wrecking all-or-nothing approach of Labour, the SNP and their Green handlers, and the Lib Dems.”

Meanwhile, the board of Peterhead Port Authority has also welcomed the approval.

PPA chief executive Simon Brebner said it was fantastic news – and a relief – that the project could finally get started, more than 15 years after a decarbonisation scheme was first mooted in the region.

“We’re delighted that, finally, after many false dawns and a significant time delay, the Acorn project and the wider Scottish Cluster will now be able to get to work and help the country reach net zero,” said Mr Brebner.

“This is the opportunity for the North-east of Scotland – including the critical facilities at Peterhead Port – to lead the world in this new and innovative technology. Others have been catching up fast, but we have the skills, expertise and ingenuity to lead the field globally.”

He added: “We have to put the frustrations of the last few years behind us and now ready to forge ahead with this amazing chance to help decarbonise the UK with the huge skills and number of quality jobs this will bring to the region.

“Peterhead Port is ready and willing to be a key player in this futuristic but critical programme to ensure we meet our net zero targets and embrace the energy transition. It is a great boost for the town and the region.”