UK CCS firm Storegga appoints former regulator as chair

The developer of the UK Acorn carbon capture and storage project (CCS) Storegga Geotechnologies has appointed a former UK gas networks regulator Alistair Buchanan as non-executive chairman, it said May 17.

Buchanan ran Ofgem between 2003 and 2013 and created the present system of onshore network regulation, where companies have to evolve and innovate in order to receive higher rates of return: Revenues = Incentives + Innovation + Outputs (RIIO). Network operators however say this approach is showing its age in a much more uncertain world.

Buchanan also held directorships at Scottish Water and Thames Water. Before and after Ofgem he worked at accountancy firm KPMG. He is now chairman of Electricity North West, the power network operator for the north west of England.

CCS will require the repurposing of some onshore high-pressure gas pipelines to carry CO₂ on behalf of third parties such as industrial and power generation sites. The pipeline to Acorn's project will terminate at the St Fergus terminal for onward transport under the North Sea, although it was built to carry natural gas south. This will need a new regulatory approach, although this time Buchanan will be working for the operator. Acorn also envisages blue hydrogen production using incoming gas at St Fergus.

Storegga CEO Nick Cooper said the company had the "skillsets and experience to play a leading role in meeting the UK’s net zero commitments and in delivering shareholder returns. Alistair joins us at a time of acceleration in both the Acorn Project and our international in initiatives.” 

Buchanan said he looked forward to leading the board of Storegga at this "exciting time in its development. The company
is pioneering carbon reduction and removal for the net-zero world initially through its Acorn CCS, Acorn Hydrogen and Storegga Direct Air Capture projects. These are positioning the UK as a global leader in CCS solutions. I am looking forward to working with Nick and the team to deliver for all Storegga’s stakeholders.”

A month ago, Storegga, Harbour Energy and Anglo-Dutch Shell became equal shareholders in Acorn. The project has government funding for research work.