War of words over Acorn Project funding

A UK Government minister has accused the SNP’s Stephen Flynn of putting a climate project at risk in a row over Westminster funding.

Local energy minister Martin McCluskey, who represents Inverclyde, has written to the Scottish transport secretary over his comments on the Acorn Carbon Capture and Storage Project.

In a video on social media, Flynn accused Prime Minister Andy Burnham of a “betrayal” over changes in funding from the Department of Energy Security and Net Zero.

Ministers last year committed a £200 million grant to the scheme in Scotland’s north east.

But this week’s Budget documents stated that the Department for Energy Security and Net Zero would shift its spending towards increased investment in defence.

It said the government was looking into the use of loans or equity investment to support the development of the Acorn project, and that £200m would be saved in capital grants from the UK carbon capture programme.

The government has denied a withdrawal of funding from the project, and McCluskey said there is still “a route to further” state funding.

The letter comes after Treasury chief secretary Emma Reynolds told BBC Scotland that the Labour administration will “stand by” the commitment made to Acorn.

She told the broadcaster: “We’re not cutting the grant funding and we will probably need to look at some sort of financial transactions to secure the rest of the project.”

Writing to Flynn, McCluskey said a change in the form of government investments “should not be presented as the removal” of support for Acorn, but any further financial transactions would “need to see the taxpayer receive a return”.

He said Scottish Government commentary could “undermine confidence” in Acorn “at precisely the point when we should be helping the project secure the investment and partnerships it needs”.

McCluskey said: “I urge you to avoid talking the project down and to make clear that there remains a route to further government support.”

The letter comes after Scottish Secretary Douglas Alexander said there had been issues over the commercial arrangements for Acorn, and the readiness of the technology it relies on.

Also appearing on the BBC, Deputy First Minister Jenny Gilruth called for “certainty and clarity” over UK Government support.