SNP calls for oil revenue to secure carbon capture project

The SNP has condemned this shift as a “betrayal,” with First Minister John Swinney expressing “deep concern.”

The Office for Budget Responsibility projects £5.1 billion in revenue from oil and gas production for 2026-27, a figure that includes potential income from fields like Rosebank, which has yet to receive approval.

SNP Westminster leader Dave Doogan stated that North Sea tax receipts should be directly invested in the Acorn project. “The UK Labour Government has banked revenue from Scotland’s resources while at the same time defunding our principal carbon capture project,” he said.

He further argued, “This is a simple injustice known all too well to Scots – our energy robbed, hidden and squandered by Westminster while Scottish jobs are ruined while our energy bills go through the roof.”

Acorn aims to store emissions from across Scotland beneath the North Sea seabed and has the potential to support approximately 15,000 jobs.

UK Government energy minister Martin McCluskey explained the change as a necessary “reprioritisation” of budgets to fund defense spending. He affirmed the UK Government’s commitment to supporting the project through loans and equity investments, stating that this approach offers better value for taxpayers and potential returns. McCluskey also indicated that carbon capture and storage programs across the UK have faced broader cuts, not just changes in funding structure.

“We are making sure that there is support there for the Acorn project. We want that project to succeed, and the developers who I’m speaking to later this week will come forward with proposals, and that funding is on the table,” he added.