![\"Russell](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/07\/Russell-Borthwick-at-RGU-hearing.png\")
A \u00a3200 million plan to build a carbon capture and storage project in north east Scotland has been scrapped in order to fund an increase in defence spending.<\/p>\n
While projects in Teesside, Merseyside and North Wales have been prioritised, and grant funding for the Viking project protected, the Acorn project at St Fergus, near Peterhead, has been left without a confirmed funding commitment.\u00a0<\/p>\n
Instead, ministers say they are exploring whether private investment, government loans or equity funding could support its future development.<\/p>\n
Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: \u201cThis is yet another hammer blow for the North-east Scotland economy and comes only a year since former Energy Secretary Ed Miliband said the UK Government would put \u2018its money where its mouth is\u2019 and back the Acorn Project, protecting 15,000 North Sea jobs. All talk, no action, like so much of the transition we were promised by this government.\u201d<\/p>\n
Adrian Johnston, tax manager at accountants MHA, added:\u201dThis is a significant setback for the North-east of Scotland, leaving Acorn\u2019s future uncertain and undermining business confidence in the region\u2019s energy transition.\u201d<\/p>\n
Seamus Logan, MP for Aberdeenshire North and Moray East \u2013 the home of the Acorn site, said: \u201cThis is the gravest betrayal of Scotland\u2019s energy sector and is an utter disaster for our energy security, our net zero ambitions and for Scottish jobs.\u00a0<\/p>\n
\u201cThis treacherous decision comes after explicit and repeated commitments from the UK Labour Government who previously assured workers and the industry that capital was secured.<\/p>\n
\u201cAcorn will now be listed alongside Grangemouth and Labour\u2019s tax on Scotland\u2019s energy \u2013 a list that depicts the shameful destruction of Scotland\u2019s industrial base by the Labour Party.\u201d<\/p>\n
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