The Scottish Government has announced a multi-million pound fund to help the energy sector recover from the “dual economic impacts” of coronavirus pandemic and the oil and gas price crash.
The £62 million Energy Transition Fund will support businesses in the oil, gas and energy sectors and help attract private sector investment in the region over the next five years.
The investment, with a focus on the North East, underpins 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, Net Zero Solution Centre projects, a Hydrogen Hub, the Acorn project and an Energy Transition Zone.
Claire Mack, Chief Executive of Scottish Renewables, said:
“Today’s announcement of a £62 million fund to help the energy sector accelerate its transition to net-zero emissions is welcome, particularly in its reiteration of the importance of pursuing a ‘green, low-carbon recovery’ from the coronavirus pandemic.
“It is vital that recovery does not ‘lock-in’ fossil fuel extraction, as we have seen in the aftermath of previous economic shocks. Doing so would endanger progress towards our climate targets and miss out on the opportunity to use renewable energy technologies to increase well being and deliver increased socio-economic opportunity across Scotland.
“We are particularly interested to hear more details of how an Energy Transition Zone could focus on low-carbon manufacturing, and would see this as a way of using Scotland’s engineering skills to lower the cost of key technologies like floating wind, wave and tidal power and create opportunities for Scottish supply chain companies.”