Funding announced for North Sea energy transition projects

The funding was announced by transport secretary Michael Matheson.

Funding announced for North Sea energy transition projects iStock
The funding will be given to a number of projects.

Funding for projects to reduce emissions in the North Sea oil sector has been announced by the Scottish Government, with money being matched by the oil and gas industries.

Transport and net-zero secretary Michael Matheson confirmed £16.5m for a range of seven energy schemes being led by the Net Zero Technology Centre.

Projects include the production of low-carbon hydrogen energy to work with Scotland’s offshore wind sector and developing infrastructure to export hydrogen – using existing energy pipelines – across Europe.

The cash from the Scottish Government’s Energy Transition Fund was announced by Matheson during a visit to Aberdeen South Harbour, where he hosted a meeting with figures from the north east energy industry to discuss the sector’s transition to net-zero.

Matheson said: “The Scottish Government is wholly committed to ending our contribution to climate change by 2045, and doing so in a way that ensures a just transition to net-zero, making sure no-one is left behind.

“We want to secure jobs for the energy workforce and create new jobs in the north east – and across Scotland – by seizing the huge opportunities our energy transition and wider journey to net-zero present.

“The Energy Transition Fund is helping the energy sector to grow and diversify and accelerate the journey to net-zero, and underpin the north-east’s ambitions to become a world leader in this transition.

“This funding will help the Net Zero Technology Centre, working with industry and academia, to grow Scotland’s role as a global leader in net-zero technology solutions, delivering security of energy supply, diversifying the sector, and creating the next generation of highly skilled, green jobs.”

Net Zero Technology Centre chief executive Colette Cohen described the funding as an “important milestone” for the centre, “which will drive the development of key technologies for green growth in Scotland and the UK, create jobs, attract investment and help establish a world-class net-zero supply chain”.

She continued: “The funding will unlock some of the technology and innovation required to deliver an affordable net-zero energy industry, and we are delighted to see industry and government supporting this national ambition.”

Oil and Gas UK chief executive Deirdre Michie said: “The UK’s offshore oil and gas industry is changing and this is further recognition of its essential expertise in meeting the governments’ net-zero emissions targets.

“This is welcome support for the Net Zero Technology Centre and for the many companies in our sector which are pioneering homegrown greener energy while continuing to support the UK’s ongoing oil and gas demand.”