Grangemouth closure: Acorn Project's future in doubt if Grangemouth refinery shuts, Scottish academic warns

The Acorn Project would take carbon dioxide (CO2) emissions and store it under the North Sea

The economic viability of the landmark Acorn carbon capture and storage (CCS) project could need to be “reassessed” if the Grangemouth refinery closes down, a leading academic has warned.

Alex Kemp, professor of oil and gas at Aberdeen University, said "economies of scale" mean that without the requirement to store emissions from the refinery, the project, in Aberdeenshire, could struggle and more jobs could be lost.

The warning comes less than 48 hours after the owners of the refinery at Grangemouth said the facility could close from 2025 and be turned into a an import terminal.

Workers picket during a past strike at the Grangemouth oil refinery. Picture: Jeff J Mitchell/Getty Images

Energy secretary Neil Gray said on Thursday he had written to the UK Government calling for talks on the long-term future of the Grangemouth site. He said he wanted the refinery to “remain open for as long as possible”.

It was hoped the Acorn project, based at the St Fergus gas terminal in Aberdeenshire, would capture around 200,000 tonnes of carbon dioxide (CO2) a year and transport it, using existing pipelines, for storage in one of three depleted North Sea gas fields. Prime Minister Rishi Sunak has claimed the project could generate 21,000 jobs.

The project, a joint venture between carbon reduction company Storegga, Shell UK, Harbour Energy and North Sea Midstream Partners, re-uses legacy oil and gas infrastructure to transport captured industrial CO2 emissions from the Scottish cluster, to permanent storage 1.5 miles under the North Sea.

Prof Kemp said there would be a “knock-on effect” on Scotland’s carbon capture and storage industry – and specifically on the Acorn project – from the closure of the refinery.