The UK will fail to meet its net zero targets - and transition away from polluting fossil fuels - unless carbon capture is rolled out at scale.
That's according to a statement from the Scottish Affairs Committee, which called upon the Chancellor to give the Aberdeenshire-based Acorn carbon capture and storage (CCS) project the green light as part of his Budget next week.
The committee argued that Scotland could hold the key to hydrogen and carbon capture being rolled out at scale across the UK, particularly given its existing skills from the oil and gas sector.
"Infrastructure in Scotland allows for opportunities to reform gas into hydrogen at St Fergus, and the nation has access to secure geological storage of carbon due to North Sea oil and gas fields," read the statement.
In the autumn of 2021, the UK Government only gave the Acorn CCS cluster 'reserve' status as part of its Track 1 programme, prioritising other sites around the UK.
The committee stated that it believes there is no justification for failing to approve the project when it is 'shovel ready'.
As St Fergus is the first landing point for 35% of all natural gas used in the UK, the project can take the gas and reform it into clean burning hydrogen with the CO2 emissions captured, removed and stored.
The committee has also been told that there are 180GW of installed wind capacity in Scottish waters, which vastly exceeds Scotland’s and much of the UK’s needs, presenting an opportunity for the UK to take a leading position in the global hydrogen export market.
"Yet despite this, and ambitious targets being set by both the UK and Scottish governments, policy progress appears lacking," the committee warned.
Witnesses have told its inquiry that there does not appear to be a sense of urgency in the numerous areas requiring attention before hydrogen can be rolled out.
This includes key decisions on hydrogen production, planning decisions, storage and transportation. Interim targets to assess progress and a timeline of when key milestones will be met are critical for industry confidence.
Committee chair Pete Wishart said: “Net zero is little more than a pipe dream without carbon capture, the hydrogen potential is clearly there, and our committee is impressed with projects where energy companies are piloting green energy projects around Scotland making use of our vast renewable energy potential.
“But the twin-track approach that the UK Government is committed to introducing leaves gaping policy holes: none more so than around carbon capture.
“It is deeply disappointing that the Acorn Project, that already has much of the necessary infrastructure in place, has been put on the back-burner and the lack of any certainty is majorly denting industry confidence.
“Clarity must be given at next week’s Budget,“ he continued, adding: “If the policy gaps are addressed, and the UK Government jumps on the opportunities in Scotland, we could be a major exporter of clean energy with thriving clusters and local economies.”
The UK Government is due to make a decision on hydrogen in home heating by 2026.
In anticipation of this, the committee recommends that the UK Government mandates hydrogen-ready boilers in all suitable properties as soon as practicable.
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