Storegga, one of the principal partners in the Acorn carbon capture and storage project at St Fergus, has confirmed it will sell its stake after completing what it called a “strategic review” of the business.
Work on the project will continue during the search for a buyer.
The project was earmarked to safeguard around 18,000 North Sea jobs, capturing emissions from industrial sites and storing them under the North Sea.
A spokesperson said: “Storegga recently completed a strategic review of its business, capital requirements and future structure. As part of this, we are progressing a structured sales process for our portfolio of assets, including the sale of our interest in the Acorn CCS project.”
They added: “With Acorn approaching a more capital-intensive phase, and with both the UK and Scottish governments signalling the importance of its timely delivery, we have concluded that a new long-term owner would be better placed to take the project forward.”
Acorn is also backed by Shell UK and Harbour Energy
A UK Government spokesperson said: “This is a commercial decision for Storegga Ltd. UK Government remains committed to the Acorn project.”
ETZ Ltd chair Sir Ian Wood said: “This news is deeply concerning for Scotland and the UK’s energy transition, and I urge the UK and Scottish Government to leave no stone unturned in their efforts to secure the future of Scotland’s only Carbon Capture Cluster.”
First Minister John Swinney reiterated Scottish Government backing for the project and the removal of windfall tax.
He said: “Acorn is a significant project that is key to the just transition and to the economic opportunities of the North-east of Scotland.
“The Scottish Government will do all that we can to support its development.
“I also make the point that the presence of the energy profits levy is a significant inhibitor in all our actions.
“I call on the UK Government, as I will do again when I see the Prime Minister ton Friday, to remove the energy profits levy, because of the damage that it is doing to the North-east of Scotland and to the future of the Scottish economy.”