Scottish Government announce £62 mil fund to support energy sector

The Scottish Government has announced a multi-million pound fund to help the energy sector bounce back from the coronavirus crisis and oil price crash.

The £62 million Energy Transition Fund will support businesses growth and diversification over the next five years and aims to attract private sector investment in the north-east.

The investment aims to establish the region as a world leader in the energy transition and, in turn, help the Scottish Government achieve its target of becoming net-zero by 2045. 

A range of projects promoting green energy will be considered for funding, including a Global Underwater Hub, Net Zero Solution Centre, a Hydrogen Hub, the Acorn project in Peterhead and the Energy Transition Zone, which has been earmarked for development next to Aberdeen's south harbour.

The energy industry was plunged into turmoil earlier this year due to the dual impact of a lack of demand as a result of the coronavirus crisis and a collapse in the oil price.

Economy Secretary Fiona Hyslop said: “This is an extremely difficult time for our business community and we recognise the need to do all we can to help the recovery of key sectors of the economy and Scotland’s regions.

“This package of investment for the North East will support our energy sector as it recovers from the impact of COVID-19 and will help us make significant progress as we move towards net zero by 2045.

“Aberdeen is recognised globally as a centre of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition.

“It is vital we move quickly to seize the opportunity to take forward a green, low-carbon recovery and support the workforce as the energy sector diversifies. Now is an opportune time to re-imagine the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”

Chair of Opportunity North East Sir Ian Wood said: “We very much welcome today’s timely funding announcement from the Scottish Government to help strengthen the North East of Scotland’s growing position as a global integrated energy transition cluster creating a lot of employment over the next 20 years."

Oil & Gas UK chief executive Deirdre Michie said: “The support from the Scottish Government today is good news for jobs, supply chain companies and energy communities.

"This significant funding recognises the essential role of Scotland’s offshore oil and gas industry in realising a net zero Scotland by 2045."

Chief executive of the Oil & Gas Technology Centre Colette Cohen said: “The creation of this fund to accelerate the transition of the energy sector to a new and exciting net zero future is very welcome news.

"We look forward to working with industry and government to deliver these exciting programmes and make sure the North East of Scotland continues to be a leader in technology and innovation for the net zero economy.”