The SNP has vented its fury at the UK Labour government amid speculation it could cut funding for a key energy project for Scotland that has repeatedly missed out on support - and could be crucial to Grangemouth’s future.

SNP Westminster leader Stephen Flynn has warned a failure to give the go-ahead to a crucial carbon capture project would “be a complete betrayal”, as he accused the UK government of causing “unnecessary uncertainty” around Grangemouth's future.

The plea for Labour ministers to finally approve the Acorn carbon capture and storage scheme, which has lost out for funding to projects south of the Border, comes amid claims that prioritising the Scottish plans could have led Petroineos to keep the Grangemouth refinery open longer.

Petroineos will close Scotland’s only oil refinery at Grangemouth (Picture: Lisa Ferguson/National World)

The site, which is Scotland’s only oil refinery, is due to close in the coming months, with owners at Petroineos having already sent out redundancy notices to some of the 400 workers there.

The Scottish Government’s acting net zero and energy secretary, Gillian Martin, told MSPs that the Acorn project being given the green light would have made the refinery “far more investable” and could “even change the mind of the current owners” about the closure.

Last week, First Minister John Swinney told The Scotsman he was “running out of patience” with the UK government over delays and false promises on carbon capture.

Now, the SNP’s Westminster leader Stephen Flynn has demanded UK ministers fast-track the technology for the Acorn project, set to be based near Peterhead and connected with operations at Grangemouth.

His appeal comes amid speculation that future projects could face a funding cut in the upcoming spending review from Chancellor Rachel Reeves.

Ms Reeves is poised for another clash with Labour UK energy secretary Ed Miliband, who said he will “consider” fast-tracking a carbon capture and storage project in Scotland, acknowledging the move could help secure a future for workers at the Grangemouth oil refinery.

In 2021, the Acorn project was snubbed in the Track 1 stage of funding for carbon capture sites and was instead given “reserve status”. This followed a previous funding snub in 2015, when the Conservative UK government withdrew £1 billion from Peterhead despite promising the investment ahead of the 2014 independence referendum.

The Labour Government has already confirmed £22bn for two carbon capture sites in England, leaving the Scottish Cluster hanging in the balance again.

Mr Flynn said: “Labour has dithered for months on whether they will back this project, creating unnecessary uncertainty - to turn their back on it entirely would be a complete betrayal at a time when their support for the North Sea remains lukewarm at best and the doors to the Grangemouth refinery swing shut.

SNP Westminster leader Stephen Flynn | PA

“What these reports make abundantly clear is that the Labour government views any investment outside the south of England as a risk, save for a new football stadium in Manchester.

“This really isn’t that hard - if you want economic growth, if you want to create jobs, if you want to develop a domestic supply chain, and if you want to hit net zero then you invest in the Acorn project.”

He added: “For years we waited for the Tories to back this project and despite offering ‘change’ the Labour government has followed the same path by prioritising investment elsewhere, offering the Scottish cluster no certainty at all.

“The Labour government has lofty ambitions for net zero, but if they can’t invest in the most fundamental aspect of the just transition then those ambitions will remain just that – a pipe dream.

“The days of warm words and rhetoric should have given way to cold hard delivery a long time ago so now it's imperative that Westminster gives the green light for Scottish carbon Capture as quickly as possible.”

Mr Miliband and Ms Reeves are expected to clash over whether plans to develop the Rosebank oil field and the Jackdaw gas field go ahead, as well as a third runway for Heathrow Airport.

Asked on Friday if he would commit to fast-tracking the project to help secure “some sort of future for Grangemouth”, Mr Miliband said he would “obviously look” at such a proposal.

He said: “We are determined to have a future for that Grangemouth site and for the Grangemouth community.

“That’s what we’re working on, actually, alongside the Scottish Government, something called Project Willow, which is a whole project which will be published later this month or early next, on looking at how we can … make the most of the potential resources at Grangemouth.

“Carbon capture and storage could be part of it, sustainable aviation fuel could be part of it.”

Speaking about Grangemouth, Mr Miliband said: “There’s huge potential on that site, and we are absolutely determined, for the sake of that community, the Scottish economy, the UK economy, to do that.”

Green MSP Gillian Mackay, who grew up and still lives in Grangemouth, said reports the refinery could close as early as May would be “a further devastating blow to hundreds of workers and to a community that feels like it has been abandoned and left to the will of a detached billionaire”.

Scottish Green Party MSP Gillian Mackay (Picture: Jeff J Mitchell/Getty Images)

She added: “The Labour government was elected on a promise to step in and save the jobs, but those words are looking extremely hollow today. With only months to go, it is clear that they have no plan to protect workers or to provide jobs for the future.

“The workers in Grangemouth could have a crucial role to play in our green future. But warm words alone about a just transition won’t pay the bills, it needs investment and it needs a proper plan.

“We can’t let Grangemouth go the same way as so many other communities and towns where big businesses have cut and run while jobs have been lost and people have suffered.”

SNP warn over Labour's carbon capture and Grangemouth 'betrayal' as anger mounts

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