The Scottish Government has announced funding of £2 million for a new project designed to capture, transport and safely store CO2 emissions from across Scotland.

The new funding will be used to explore how a pipeline could transport Carbon Dioxide from Scotland's central belt to the North East.

The Acorn Carbon transport and storage project is a joint venture with the Scottish Cluster, benefitting from the collective expertise of Storegga, Shell UK, Harbour Energy and North Sea Midstream Partners, along with National Gas.

The project is working with industrial, power, hydrogen, bioenergy and waste-to-energy businesses, including those in Peterhead, Grangemouth and Mossmorran, who wish to capture CO2 emissions and send to permanent geological storage under the North Sea.

Visiting St Fergus in Aberdeenshire, where the Acorn transport and storage terminal will be located, First Minister John Swinney said: "The Acorn project will be essential in securing the future of key industrial sites like Grangemouth and Mossmorran. A National Gas pipeline is a critical component of the project and I am delighted that the Scottish Government is providing funding to accelerate this innovative work.

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"We are determined to support projects like this to support the development of Scotland's carbon capture and storage sector and the fair and just transition of oil and gas sector.

"This announcement today demonstrates our unwavering support for carbon capture and storage, and I am confident that the UK Government will work constructively with us to ensure the Acorn Project is awarded Track 2 status. Enabling this innovative work to progress will help unlock so many opportunities not just for Scotland, but for the UK as a whole."

Managing Director of Acorn Nic Braley said: "We welcome the Scottish Government's support for the SCO₂T Connect project, and the recognition of its importance for the decarbonisation of Scotland's industry.

"Working together, Acorn and National Gas can provide a CO₂ transport and storage solution to the Scottish Cluster, a diverse range of emitters from across Scotland and the rest of the UK, who are all committed to timely and cost-effective decarbonisation.

"The Scottish Cluster, with Acorn at its core, and the UK and Scottish governments can collectively make a major contribution to UK Net Zero commitments, supporting ambitions for clean energy, green prosperity and value for money.

"We look forward to working with both Scottish and UK Governments to make the Scottish Cluster a reality."

CEO of National Gas Jon Butterworth said: "We are committed to reaching net zero, and excited to explore how our world-class gas network can be at the heart of the drive to decarbonise with carbon capture and storage.

"We welcome today's announcement from the Scottish Government. It is a brilliant example of how government and industry can work side-by-side to deliver clean energy solutions."