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Scotland offers funds for carbon capture

17 Jan 22 The Scottish government is offering up to £80m to support a carbon capture project that was dealt a funding set-back last year.

The investment in the Scottish Cluster project would come from the Scottish government’s Emerging Energy Technologies Fund. It would need to work with the UK government to support the Scottish Cluster as it does not have all the legislative and regulatory powers.

Scottish government cabinet secretary for net zero, energy and transport Michael Matheson met virtually with the UK government’s minister for energy Greg Hands on Thursday, setting out the funding offer and pressing the UK government to provide certainty for the Scottish Cluster, which wasn’t picked last year as one of the ‘Track-1’ carbon capture and storage (CCS) projects. Matheson said: “The UK government’s decision not to award the Scottish Cluster clear and definitive Track-1 status is a serious mistake which shows a clear lack of ambition and leadership on climate change.

“Delaying or halting the deployment of the Scottish Cluster has serious consequences, including jeopardising the industrial decarbonisation of Scotland and our just transition to net zero, creating an un-level playing field across the UK, and endangering Scottish and UK-wide net zero targets.

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“That is why I am announcing today that we stand ready with up to £80 million of funding to help the Scottish Cluster continue and accelerate the deployment of carbon capture technology.”

Scotland proposes to help work with UK Government support to develop “three CCS clusters for the price of two” and grant the Scottish Cluster Track-1 status in its carbon capture sequencing process.    

Matheson added: “Unfortunately we do not hold all the necessary legislative and regulatory levers needed to support the Scottish Cluster, as they are not devolved. We cannot simply go it alone with our funding. Our offer of support is therefore made on the basis that the Scottish Cluster is given certainty of its due status within the UK sequencing process, and I once again urge the UK Government to provide this certainty for the benefit of our energy sector and for our ability to deliver a just transition to net zero.”

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