The UK government has delivered just £12 million of the £200 million originally promised to the Acorn carbon capture project in Aberdeenshire, Scotland. Chancellor John Healey changed the commitment in the Budget, meaning future support will come through loans or an equity stake rather than grants. The project has said its development programme is unchanged, but the funding shift adds uncertainty for a scheme that could support thousands of jobs in the North Sea region. The SNP has criticised the move, with MSP Karen Adam calling the £12m sum inconsequential and accusing Scottish Labour MPs of deception. The Department for Energy Security and Net Zero says Acorn will continue to receive existing grant funding until the end of the year, and that future support through loans or equity will ensure taxpayers see a return. The change reflects a broader government approach to carbon capture funding, moving away from direct grants toward investment structures that share risk and reward. For carbon capture developers, the shift means projects like Acorn need to demonstrate commercial viability earlier. The equity option could give the government a closer partnership role, but it also complicates project financing. The gap between the original promise and the delivered amount highlights the gap between political commitments and actual funding mechanisms.
