Scrapping £1bn Carbon Capture and Storage programme a “disgrace”, says Fergus Ewing

The UK Government’s decision to scrap its £1bn Carbon Capture and Storage (CCS) programme is a “disgrace”, according to Scottish Government energy minister Fergus Ewing.

The funding, promised in the Conservative manifesto, was due to be awarded in six months’ time, with Peterhead power station one of two plants bidding for the competition.

CCS aims to traps carbon dioxide, emitted by coal and gas power plants, and store it underground in an effort to mitigate climate change.

RELATED CONTENT

Scottish scientists concern over effect of GM crops ban

Cracks found in bricks at core of Ayrshire nuclear power station reactor

The Government statement said: “Today, following the Chancellor's Autumn Statement, HM Government confirms that the £1bn ring-fenced capital budget for the Carbon Capture and Storage competition is no longer available.

“This decision means that the CCS competition cannot proceed on its current basis. We will engage closely with the bidders on the implications of this decision for them.”

Lisa Nandy, Labour’s shadow energy secretary, said: “CCS offers huge economic opportunities for Britain. Year after year the prime minister has personally promised to support CCS, so this is a huge betrayal.”

Ewing said: “It shows complete disregard for tackling climate change, utter indifference to developing the crucial new technologies that will cut emissions and is another UK Government hammer blow to energy generation in Scotland.

He added: “The UK has 30 per cent of Europe’s CO2 storage capacity alongside an oil and gas infrastructure which can be utilised for CCS. The CCS commercialisation programme has already been running for 10 years. Had the competition been allowed to run its course, the world’s first commercial scale gas powered CCS plant could have been built in Peterhead creating new jobs, blazing a trail for innovation and potentially attracting significant investment to the UK.

“This should have been a huge industrial opportunity. Instead the decision to pull the plug on the CCS programme, to meet a deeply flawed austerity agenda, is breathtakingly short-sighted, even for this UK Government.”

The spending review contained the news that DECC’s day to day resource budget will fall by 22 per cent.