BP has abandoned plans for the £500m UK carbon capture power plant in Aberdeenshire, blaming Westminster delays over support.
Mr Darling said BP could not simply be awarded the contract.
The Scottish National Party has called for a debate in the Commons on the collapse of BP's investment.
Politicians and environmental groups have described the situation as a "disaster".
About 1,000 jobs were expected to be created if the green project was ultimately given the go-ahead.
| I just hope that it's possible for Westminster ministers to re-think this Stewart Stevenson Banff and Buchan MSP |
The proposal was to generate "carbon-free" electricity from hydrogen, reducing greenhouse gas emissions by capturing carbon dioxide and safely storing it in an oilfield nearing the end of production.
It would have seen the world's first industrial-scale hydrogen power scheme based in the town. The plans won praise from energy experts, environmental campaigners and politicians alike for pointing the way forward.
Banff and Buchan MSP Stewart Stevenson told BBC Radio's Good Morning Scotland programme: "A terrific economic opportunity for the north east appears to have been lost in the short-term, in the long-term for making Scotland a world leader in carbon capture technology.
"I just hope that it's possible for Westminster ministers to re-think this."
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