The Scottish Government has announced a £62 million fund to help the energy sector recover from the dual economic impacts of coronavirus and the oil and gas price crash. The fund, to be spent over the next five years, will help businesses in Scotland’s north east diversify out of the oil, gas and energy sectors and help attract private sector investment in the region.
Announcing the fund the Scottish Government said the region had an ambition to become a world leader in the transition to Net Zero.
The funding package will help position the region as a ‘hydrogen model’, with early funding for projects including: Acorn CCS & Acorn Hydrogen; Aberdeen Vision; and the Aberdeen Hydrogen Hub. Acorn Hydrogen, located at the St. Fergus gas terminal, seeks to produce hydrogen from natural gas and the linked Acorn CCS project would capture and store the CO2 safely in North Sea reservoirs. The Aberdeen Hydrogen Hub aims to use green hydrogen in the transport sector.
Other projects to be considered for support include:
- A Global Underwater Hub in Aberdeen focused on helping the subsea and underwater sector grow with a focus on diversification and export support.
- A new Energy Transition Zone business park adjacent to the Aberdeen South Harbour.
- A range of innovation projects led by Oil and Gas Technology Centre’s Net Zero Solution Centre.
The Scottish Government will also work with the UK Government and industry to ensure funding supports an Oil and Gas Sector Deal.
Economy Secretary Fiona Hyslop said: “This package of investment for the North East will support our energy sector as it recovers from the impact of Covid-19 and will help us make significant progress as we move towards net zero by 2045.
“Aberdeen is recognised globally as a centre of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition.