Multi-million pound fund to help North Sea energy sector

There’s a boost for Scotland’s struggling oil and gas sector thanks to a new £62 million cash injection.

At her daily briefing, Nicola Sturgeon announced the Energy Transition Fund which will help businesses in the North East of the next five years.

There have been significant job losses, with demand falling and prices collapsing due to the pandemic.

The First Minister said: “The Scottish Government wants to do everything we can to support the energy sector through this crisis.

“We want to protect jobs and businesses in the North East of Scotland and across the country.

“In doing that, we want to make sure that the sector is able to continue to lead and indeed to benefit from Scotland's necessary transition to a net zero economy.

“That's why today I'm announcing a new £62 million Energy Transition Fund.

“Over the next five years that fund will support key energy projects which will help Scotland's move to net zero.”

A number of projects, which will help Scotland reach net-zero emissions by 2045, will benefit from the funding.

Ms Sturgeon said: “For example, one project, the Global Underwater Hub brings together engineering, expertise from academia and industry.

“It will help our oil and gas sector use its existing subsea and underwater expertise in new areas - such as marine renewables.”

She added: “Another project receiving support will be the energy transition zone - a new business park adjacent to the Aberdeen south harbour.

“That will provide state of the art facilities for the manufacture and development of renewable and low carbon technologies.”

The cash injection will also help the North East as a Hydrogen model region – and will provide funds to projects in the Granite City like Aberdeen Vision and the Aberdeen Hydrogen Hub.

However, the First Minister was keen to stress not only the North East would reap the rewards of the funding.

“Almost inevitably, given the focus of the fund is the transition from oil and gas to renewables, the projects which directly benefit from this fund are currently based in the North East of Scotland,” she said.

Ms Sturgeon continuined: “But by securing Scotland's place as a world leader in the key technologies for the future, they will help businesses right across the country to diversify, to attract new investment, seize new opportunites and both protect and create jobs.

“We know that the energy transition will shape our economic future. That was true before the Covid crisis, and it remains true during and after the Covid crisis.

“But through these investements, not only will we shape that energy future and economic future, we'll also help with the economic recovery from the crisis which is currently afflicting so many businesses across Scotland.

The Scottish Government says it will also work with the UK Government and the industry to make sure funding supports and Oil and Gas Sector Deal.

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