In a new consultation on North Sea policies that UK ministers say will protect jobs and supply chains, the government vowed to help the energy sector shift to become a clean energy “world-leader” in technologies like offshore wind, hydrogen and carbon capture.
The consultation also includes delivering the government’s commitment not to issue new licences to explore new oil and gas fields in the UK, in line with the science of what is required to keep global warming to 1.5 degrees. The consultation also engages with industry on how to manage existing fields for the entirety of their lifespan.
This comes after the government has backed new investment into Scotland’s clean energy future, awarding £55.7 million to the Port of Cromarty Firth, securing critical facilities needed for the rapid development of new floating offshore wind farms.
Separately, the Treasury said it would scrap the energy profits levy – a windfall tax brought in at the height of the cost of living crisis when gas prices surged – and consult on a “new regime” for the 2030s that would factor in future oil and gas shocks.
“Dialogue with North Sea communities”
Scottish Secretary Ian Murray said: “We know the existing oil and gas fields in the North Sea will be with us for decades and a crucial part of our energy mix. Through our Plan for Change we are working to ensure our vital energy sector continues to deliver economic growth and skilled jobs in local communities both in the north east of Scotland and across the country for generations to come.”
Energy Secretary Ed Miliband said the North Sea would continue to help “power our country and our world”. He added: “This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”
The Secretary of State continued: “The North Sea will be at the heart of Britain’s energy future. For decades, its workers, businesses and communities have helped power our country and our world.
Oil and gas production will continue to play an important role and, as the world embraces the drive to clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead.”
Carbon capture industry to add £5 billion per year to the UK economy
The UK government said that ‘diversifying the North Sea industries while domestic production is managed for decades to come is key to protecting its jobs and investment in the long-term. Today’s consultation explores how to harness the North Sea’s existing infrastructure, natural assets and world-leading expertise to deploy new technologies – like hydrogen, carbon capture and storage, and renewables – to create skilled jobs, meet the UK’s climate obligations, and make the UK a clean energy superpower.
It is estimated that the offshore renewables workforce, including offshore wind, CCUS and hydrogen, could increase to between 70,000 and 138,000 in 2030. Meanwhile, an up-and-running carbon capture industry alone is expected to add around £5 billion per year of gross value to the UK economy by 2050.’
The announcement also comes after the government confirmed Aberdeen, Cheshire, Lincolnshire and Pembrokeshire as key growth regions for clean energy and launched pilots to help workers in these areas access jobs in new clean energy industries.
The Department for Energy Security and Net Zero’s consultation on Building the North Sea’s Energy Future will run for 8 weeks from 5 March to 30 April.