The Scottish government has launched a new fund to help the energy sector recover from the dual economic impacts of COVID-19 and the oil and gas price crash.
The £62mn Energy Transition Fund, launched on 12 June, will support businesses in the oil, gas and energy sectors over the next five years as they grow and diversify. The investment will have a focus on the North East, underpinning the region’s ambitions to become a world leader in the transition to net zero and enable Scotland to hit its ambitious climate goals.
The fund will look to support net zero projects, including the Global Underwater Hub in Aberdeen, which is focused on helping the subsea and underwater sector grow with a focus on diversification and export support. Alongside backing for net zero projects, the fund will aim to position North East Scotland as a hydrogen model region. This will see early funding given to projects such as ACORN Hydrogen, located at the St Fergus gas terminal, which will produce hydrogen from natural gas and the linked ACORN CCS project, which will capture and store the CO2 safely and permanently in North Sea reservoirs.
The Scottish government added that it will work with the UK government and industry to ensure that the funding supports an Oil and Gas Sector Deal.
Scottish 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.”