Ed Miliband is locked in talks with Rachael Reeves in an effort to secure HM Treasury funding for the Acorn Carbon Capture project in Aberdeenshire.
The Energy Secretary is one of four ministers reportedly "holding out" for a better deal from the Chancellor as her spending review goes down to the wire.
Amid growing concern about the impact Labour's policies are having on North Sea Jobs, the Financial Times reports that Mr Miliband is seeking further funding for Great British Energy - which is being headquartered in Aberdeen - and carbon capture projects.
Scottish MPs and MSPs recently united to back the Acorn CCS project, with support from Labour, Liberal Democrat, SNP and Conservative politicians.
In an open letter to the Chancellor, the representatives from across Scotland called for the project to be progressed as an immediate priority – with huge potential to unlock £7billion in private investment and create 15,000 new jobs in the energy transition.
The calls come after a challenging spell for Scotland’s energy sector, with 250 job cuts announced at Harbour Energy in Aberdeen, hundreds more in the supply chain and 400 jobs lost at Grangemouth following the end of refining operations at the site.
And a report from Robert Gordon University has warned that the North Sea could lose 400 jobs every fortnight without government intervention.
CCS is seen as a vital development to help avoid a cliff-edge in the energy transition.
Acorn is Scotland’s only at-scale CO2 transport and storage solution which will enable Scottish industry to decarbonise. It will enable carbon capture at Peterhead Power Station, helping to balance intermittent renewable energy across the grid, and help to secure an industrial future for Grangemouth through Project Willow.
Aberdeen & Grampian Chamber of Commerce Chief Executive Russell Borthwick said: “If the energy transition is to succeed, we need a green light for Acorn to move forward with pace and certainty. "