LABOUR will undo the UK government’s decision not to fund a carbon capture, utilisation and storage scheme in Scotland.
Last September, the Acorn project at St Fergus gas terminal close to Peterhead lost out to two sites in the north of England in the first round of investment.
Instead, it was given “reserve” status, only likely to be used “if a back-up is needed.”
However, the funding snub means it almost certainly will not be developed until the second phase in the 2030s at the earliest.
Firms involved in the project believed it had the potential to be up and running in the next five years, able to capture around 200,000 tonnes of carbon dioxide a year from Grangemouth and St Fergus, plus a new power station at Peterhead, and transport it, using existing pipelines, for storage in one of three depleted North Sea gas fields.
Labour said the Scottish cluster would be funded as one of the first projects made by a state-owned investment fund to be announced by Shadow Chancellor, Rachel Reeves.
She is set to tell delegates that it will be part of the party’s mission to “build British industry.”
The projects will be funded by a Norweigan-style National Wealth Fund.
The policy would mean that when public money is spent on these projects, the British people would own a share of that wealth and benefit from the returns on those investments.
Speaking at the Labour conference in Liverpool, Ms Reeves is expected to say: “Here is the deal: The next Labour Government will create a National Wealth Fund so that when we invest in new industries, in partnership with business the British people will own a share of that wealth and the taxpayer will get a return on that investment.
“Because conference, when I say I want to buy, make and sell more in Britain I mean it.
“What you will see in your town, in your city, under Labour is a sight we have not seen often enough in our country.
“Cranes going up, shovels in the ground. The sounds and sights of the future arriving. Secure, skilled jobs for plumbers, electricians and joiners, for designers, scientists and engineers.
“Wealth that will flow back into your community and onto your high street. Wealth that the British people will own a stake in. Wealth that is invested in our country’s future.”
She will add: “That is a real plan for the climate. That is a real plan for growth. That is a real plan for levelling up.
“A zero carbon economy – made right here… made in Britain.”
Other projects to be funded would include eight new battery factories, six clean steel plants, nine renewable-ready ports, and the world’s largest hydrogen electrolyser plant.
SNP MSP Michelle Thomson pointed towards the Scottish National Investment Bank, and accused Labour of “mimicry”.
She said: "Imitation is the sincerest form of flattery but it feels a step too far for Labour to use SNP policies to excite their own party conference.
"The problem Labour has, however, is some fundamental differences that persist between our parties - the SNP stick to their word, get elected, deliver on their promises and don't prop up Tory administrations.
"As Labour continue use the Tories as their main source for mimicry - whether on Brexit, austerity cuts, democracy denial, or their arrogant treatment of Scotland and the devolved nations - people across Scotland understandably struggle to trust a word they say and that's why they voted to be able to choose a better, more equal and prosperous future as an independent country."
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