UK backs Acorn and Viking CCS projects in Spending Review

The UK Government has formally announced its backing for two major carbon capture and storage (CCS) projects that could collectively capture and store over 15 million tonnes of carbon dioxide per year by 2030.

Announced today as part of the UK Spending Review, the Acorn CCS project in Aberdeenshire and the Viking project in Humberside have been selected to move forward under the government’s Track-2 carbon capture cluster process.

The decision confirms formal backing and opens the door to final negotiations on funding terms and deployment timelines, with £9.4bn allocated to support carbon capture, utilisation and storage and hydrogen projects over the coming years.

“We have always been clear that we support the Acorn project … we know what an important proposal it is,” said Energy Minister Sarah Jones.

The announcement ties into wider plans to accelerate the UK’s low-carbon hydrogen and CCS sectors across major industrial clusters.

A broader £21.7bn investment over 25 years was also confirmed to support Track-1 CCS and hydrogen projects, including the East Coast Cluster and HyNet North West. These schemes are expected to support up to 50,000 jobs and decarbonise some of the UK’s most emissions-intensive industries.

“This game-changing technology will bring 4,000 good jobs and billions of private investment into communities … igniting growth in these industrial heartlands and powering up the rest of the country,” said Chancellor Rachel Reeves.

As Track-2 projects, Acorn and Viking will not receive funding from the £21.7bn commitment, which is reserved for Track-1 deployment. However, their advancement signals long-term government intent to expand CCS capacity and enable net-zero infrastructure in Scotland and eastern England.

Acorn, part of the Scottish Cluster, is targeting around 10 million tonnes of CO2 per year by the end of the decade, making use of existing offshore infrastructure including the repurposed Goldeneye gas field. The project is also integrated with plans for large-scale blue hydrogen production and CO2 shipping imports at Peterhead.

Viking, led by Harbour Energy and supported by Shell and the Humber Zero alliance, could capture and store 10 million tonnes per year by 2030 via pipeline connections to the depleted Viking gas fields in the North Sea.

Tim Stedman, CEO of Storegga – one of the developers of Acorn CCS – welcomed the announcement, stating, “This vital support will enable the critical work needed to reach final investment decision and marks a major step forward — not only for Acorn, but for the development of Scotland’s CCS infrastructure and the growth of a UK-wide carbon capture and storage industry.”