Friday 12 June 2020

A multi-million-pound fund has been set up to help the energy sector recover from the dual economic impacts of coronavirus (COVID-19) and the oil and gas price crash.

The £62 million Energy Transition Fund will support businesses in the oil, gas and energy sectors over the next five years as they grow and diversify and will help attract private sector investment in the region.

The investment, with a focus on the North East, underpins the region’s ambitions to become a world leader in the transition to net zero, helping Scotland meet its ambitious targets on climate change.

Major projects to be considered for funding include a Global Underwater Hub, Net Zero Solution Centre projects, a Hydrogen Hub, the Acorn project and an Energy Transition Zone.

The investment will also benefit the wider Scottish energy sector and supply chain, working with local businesses to support sustainable jobs and maximise inclusive economic growth across the country.

Background

This funding package is available to support Net Zero projects, including:

A Global Underwater Hub focused on helping our subsea and underwater sector grow with a focus on diversification and export support.

A new Energy Transition Zone business park adjacent to the Aberdeen South Harbour.

A range of innovation projects led by Oil and Gas Technology Centre’s Net Zero Solution Centre.

This will also position the North East of Scotland as a Hydrogen model region, contributing early funding to projects including: ACORN CCS & ACORN Hydrogen; Aberdeen Vision; and the Aberdeen Hydrogen Hub.

ACORN Hydrogen, located at the St. Fergus gas terminal, seeks to produce hydrogen from Natural Gas and the linked ACORN CCS project would capture and store the CO2 safely and permanently in North Sea reservoirs.

The Aberdeen Hydrogen Hub presents the opportunity to use green hydrogen in the transport sector, with early opportunities including buses, Council vehicles and commercial vehicles.

The Scottish Government will engage with stakeholders and partners in the development of business cases for these projects.

The Scottish Government will also work collaboratively with the UK Government and industry to ensure that this funding supports an Oil and Gas Sector Deal, placing the industry in a global leadership role as part of a Net Zero future.