SNP Asks for £5 Billion Windfall Tax to Fund Acorn Carbon Capture After UK Grant Cut

The SNP is asking the UK government to redirect £5 billion from oil and gas windfall tax revenues to the Acorn carbon capture and storage project in Aberdeenshire. The demand follows a budget decision that replaced a promised £200 million grant with only £12 million in delivered funding, and shifted future support to loans or equity. Acorn, based at the St Fergus gas terminal, is meant to store CO2 from heavy industry in North Sea reservoirs and support an estimated 15,000 jobs. The timing has drawn criticism because the Scottish Government approved a new gas-fired power station at Peterhead just before the funding change, and that plant depends on Acorn to manage its emissions. Energy Minister Martin McCluskey said the reprioritisation was needed to fund defence, but local business groups warn the policy inconsistency puts industrial decarbonisation at risk. The dispute highlights how fragile UK carbon capture progress can be when funding mechanisms shift mid-project.