UK Government to invest £27 million of funding for green energy in North East
Chancellor Rishi Sunak will also announce £5 Million worth of funding for the global underwater hub in Aberdeen in his budget on Wednesday.
Chancellor Rishi Sunak is set to commit £27 million for the Aberdeen energy transition zone, a first step in the promised sector deal for the oil and gas industry.
Sunak will outline this funding in his budget announcement on Wednesday (March 3).
The aim of the UK Government is to 'transform North East Scotland into a globally competitive hub for cleaner energies' this includes offshore wind and hydrogen.
The Chancellor is also expected to announce up to £2 million to support the continued development of industry proposals for the North Sea Transition Deal and a further £5 million for the Global Underwater Hub in Aberdeen, building on last year’s £1.3 million commitment.
The Chancellor of the Exchequer, Rishi Sunak, said:
“It’s vital that as we deliver our Plan for Jobs and level-up across the whole UK we build back better in a sustainable way.
“The measures set out in tomorrow’s Budget will boost Scotland’s transformation into a green energy hub, deliver on our commitment to Net Zero, and deliver a boost that cities and industry need.”
North East MP Stephen Flynn from the SNP says far more funding is required to support the sector.
"It's now some eight months since the Scottish Government first announced £27 Million towards an energy transition zone, I'm glad the UK Government have finally woken from their slumber and agreed to match that commitment.
The Aberdeen South MP said:
"But of course, this announcement today falls some way short of the £62 Million put on the table by the Scottish Government." Continued Flynn.
He added:
"And of course it's a drop in the ocean of the £350 Billion that the UK Government have coined from the North Sea oil and gas sector over the decade.
"So while this announcement is welcomed, it's not the transformative investment that we need to see from the UK Government."
Deirdre Michie, Chief Executive, OGUK, said:
“This is an exciting announcement by the Chancellor that will create jobs and help position the UK as a global hub of green energy.
"The UK’s world-leading supply chain is at the heart of this country’s ability to transition to a net zero economy, so these new investments are welcome and recognise the positive role this sector has to play in our energy future.
"We look forward to working closely and quickly with government to finalise the North Sea Transition Deal.”