The Acorn project in Scotland led by Storrega Geotechnologies – one of the carbon capture companies delivering CCS technologies, has welcomed aboard a former chief executive of Ofgem – Alistair Buchanan. That move is deemed to help the company develop its business model for the CCS project and could shape the carbon capture and storage and hydrogen market in the UK.
The Acorn project involves the construction of carbon capture and storage infrastructure. It will sequester CO2 from a hydrogen production facility from natural gas in a depleted North Sea reservoir. The project is important in meeting Scotland and UK’s net zero targets.
It is expected to become online in 2023. Storrega is asking for Government support for the project and hopes it will become one of the first large scale CCS schemes in the UK. Other investors include oil giant Shell and North Sea-focused Harbour Energy. Singapore sovereign wealth fund GIC and Japanese industrial giant Misui have also funded the project in March this year.
Storrega wants to develop a model that could be replicated around the world for commercial deployment. The business model that the company is considering is the introduction of a carbon pricing mechanism that will encourage users to pay Acorn to handle their carbon dioxide emissions. Storrega aims the project to be positioned as a leader in the carbon capture market in the country.
The Acorn Carbon Capture And Storage Project Moves Ahead With New Board Member
The newly appointed in its board Alistair Buchanan was a former Ofgem leader and in charge of the creation of the regulatory structure for the offshore wind industry.
Storrega representatives have commented: “This experience will enable Storegga to provide further assurance to both BEIS (Department for Business, Energy and Industrial Strategy) and Ofgem during future critical discussions on both the shape of carbon and hydrogen markets, and the regulatory process to be adopted.”
The Acorn project is positioning the UK as a global leader in the industrial carbon capture and storage market. Mr Buchanan experience will assist Storrega to build the foundation of a growing marketplace for trading of CO2 emissions and their carbon capture and storage.