Storegga, a UK developer, has initiated the sale of its 30% stake in the Acorn carbon capture and storage (CCS) facility. This decision follows a strategic business review and occurs as the project enters a more capital-intensive phase. Storegga stated that a new long-term owner would be better positioned to advance the project, though work continues during the sales process to maintain momentum.

Project Context and Government Support

The potential sale emerges just five months after the UK government committed £200 million in development funding for Acorn. The project aims to capture 5 to 10 million tonnes of CO2 annually from industrial sources in Scotland for offshore storage. Following the funding confirmation, Storegga had planned to double its personnel assigned to Acorn.

Uncertainty and Development Challenges

The impact of Storegga's exit is unclear given its role as developer. Its joint venture partners, Harbour Energy and Shell, declined to comment. The UK government views CCS as key to meeting emissions targets, but delays in funding announcements and market routes have created significant uncertainty for future development. Acorn, which received the UK's first carbon storage licence in 2018 and was later a Track One reserve project, has experienced a protracted timeline.

Broader Implications and Customer Loss

The lengthy development previously led Storegga to prioritize opportunities in Norway and the US. Furthermore, some potential industrial customers for Acorn have shut down during the delay, including the Grangemouth refinery this year. Another target, ExxonMobil’s Mosmorran ethylene plant, is scheduled to close next year.