The UK will invest £200 million in the Acorn carbon capture initiative in Scotland.

The UK government announced on Thursday that it will invest £200 million ($272 million) in the Acorn carbon capture and storage (CCS) project in Scotland, providing more details on the funding first mentioned in a spending review on Wednesday.

With a goal to achieve net zero emissions by 2050, the UK has emphasized the importance of CCS for reducing emissions from energy-intensive industries.

Acorn, which is being developed by Storegga, Shell UK, Harbour Energy, and North Sea Midstream Partners in St Fergus, Scotland, aims to capture carbon dioxide emissions from industries and store them beneath the North Sea.

Tim Stedman, CEO of Storegga, expressed that this crucial support will facilitate the necessary steps to reach Final Investment Decision (FID) and represents significant progress for Acorn, Scotland’s CCS infrastructure, and the broader UK carbon capture and storage sector.

The government also plans to support the Viking CCS project in the Humber region of northern England, though the funding amount has not been specified.

Britain's energy minister, Ed Miliband, highlighted that this funding will promote industrial renewal in Scotland and Humber, creating thousands of skilled jobs for a clean energy future.

Once operational, both projects are expected to capture up to 18 million tonnes of carbon dioxide annually, according to the government.

This funding is part of the £9.4 billion the government committed to carbon capture technology during the spending review and the £21.7 billion announced last year for CCS over the next 25 years.