Scottish government unveils £62mn fund for energy sector

The Scottish government has announced a £62mn support package to help the energy sector recover from the dual economic impacts of COVID-19 and the oil and gas price crash, and to deliver a net zero future.

The Energy Transition Fund will support businesses in the oil, gas and energy sectors over the next five years as they grow and diversify and will help attract private sector investment in the region. The investment has a focus on the North East, ‘underpinning the region’s ambitions to become a world leader in the transition to net zero, helping Scotland meet its ambitious targets on climate change’.

Major projects to be considered for funding include a global underwater hub in Aberdeen, a range of innovation projects led by the Oil and Gas Technology Centre’s Net Zero Solution Centre, the Aberdeen Hydrogen Hub, the Acorn project and an Energy Transition Zone business park.

Scotland’s Economy Secretary Fiona Hyslop said: ‘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.’

Oil & Gas UK Chief Executive Deirdre Michie added: ‘This significant funding recognises the essential role of Scotland’s offshore oil and gas industry in realising a net zero Scotland by 2045.’