Industry reacts to fresh funding for green energy in the North East
Chancellor Rishi Sunak is expected to commit £27 million for the Aberdeen Energy Transition Zone and 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.
Chancellor Rishi Sunak is expected to commit £27 million for the Aberdeen Energy Transition Zone, a first step in delivering on the Government’s promise for a sector deal for the oil and gas industry.
Sunak said this would:
"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.”
Industry body Oil and Gas UK say the announcement is 'exciting'.
Deirdre Michie, OGUK’s chief executive, said:
“The UK’s world-leading supply chain is at the heart of this country’s ability to transition to a net zero economy, so the timely announcement of these new investments is welcome, recognising the positive role this sector has to play in our energy future.
“This funding will help create employment opportunities in new technologies, support the reduction of emissions from production and enable our industry to become part of a new low carbon energy community. Key to this will be the North Sea Transition Deal which we look forward to working closely and quickly with government to finalise.”
Rishi Sunak 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.
Commenting on the £5 million for the underwater industry, Neil Gordon - chief executive of Subsea UK - said: “With this further, and very welcome, funding from the UK Government for the Global Underwater Hub, the industry and all stakeholders will deliver a sustainable institution with the necessary resources to significantly grow the UK’s underwater engineering capability and capacity, capitalising on the opportunities in the energy transition and the blue economy.
“The £7.8billion subsea industry, with its roots in oil and gas, a strong foothold in offshore wind and massive potential in marine renewables, defence, ocean science, aquaculture and other segments of the blue economy, can become one of the UK’s fastest-growing, high value industries of the future, increasing exports, creating jobs and contributing not only to economic recovery but, crucially, to delivery of our net-zero targets.”