Banff and Buchan MP David Duguid has welcomed the UK Government’s announcement of a landmark deal to support Scottish oil and gas sector’s transition to clean, green energy, while creating tens of thousands of jobs.
The sector deal between the UK Government and oil and gas industry will support Scottish workers, businesses, and the supply chain through the energy transition by harnessing the industry’s existing capabilities, infrastructure and private investment potential to exploit new and emerging technologies such as hydrogen production, Carbon Capture Usage and Storage, offshore wind and decommissioning.
Not only will the Deal support existing companies to decarbonise in preparation for a net zero future by 2050, but it will also create the right business environment to attract new industrial sectors to base themselves in Scotland and the UK, develop new export opportunities for British business, and secure new high-value jobs for the long-term.
Extracting oil and gas on the UK Continental Shelf is directly responsible for around 3.5% of the UK’s greenhouse gas emissions. Through the package of measures, the Deal is expected to reduce emissions by 10% by 2025 and 25% by 2027 and has committed to cut emissions by 50% by 2030. The deal is also predicted to support up to 40,000 jobs across the supply chain.
Joint government and private investment of up to £16 billion is expected by 2030. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on Carbon Capture Usage and Storage, and up to £10 billion for hydrogen production.
The appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind.
Scottish Conservative MP for Banff and Buchan David Duguid said
The oil and gas industry has already made great strides towards a greener, more sustainable, lower carbon future and the North Sea Transition Deal, agreed between the UK Government and the industry, takes those ambitions a step further.
North East Scotland has long been seen as a global centre of excellence for the oil and gas industry – there’s no reason why it can’t now be seen as a global centre of excellence for the new discipline of energy transition.
And this is not just about making the transition of energy from hydrocarbons to renewables. It’s about a ensuring and orderly transition of jobs, skills and expertise as well.
The UK Government has worked consistently and intensively with the industry, and we will continue to do so, to make progress on a scientific, data and evidence-led basis.