Scotland sets up $78M oil and gas support fund with greener future in mind

The Scottish government has set up a 62 million-pound ($78 million) fund to help the energy sector recover from the economic impacts of COVID-19 and the oil and gas price crash with net-zero opportunity in mind.

The so-called “Energy Transition Fund” will support businesses in the oil, gas, and energy sectors over the next five years as they grow and diversify and help attract private sector investment in the region.

According to a statement by the Government, the investment is focused on ambitions to “become a world leader in the transition to net-zero” and “helping Scotland meet its ambitious targets on climate change.”

Economy Secretary Fiona Hyslop said: “This package of investment for the northeast 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.

“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 Scotland around us and to begin building a greener, fairer, and more equal society and economy focused on wellbeing”.

The government also hopes that the investment would benefit the wider Scottish energy sector and supply chain, support sustainable jobs, and maximise inclusive economic growth across the country.

Oil & Gas UK chief executive Deirdre Michie stated: “The support from the Scottish Government today is good news for jobs, supply chain companies and energy communities.

“This significant funding recognises the essential role of Scotland’s offshore oil and gas industry in realising a net-zero Scotland by 2045“.

Chief executive of the Oil & Gas Technology Centre Colette Cohen added: “The creation of this fund to accelerate the transition of the energy sector to a new and exciting net-zero future is very welcome news.

“We look forward to working with industry and government to deliver these exciting programmes and make sure the North East of Scotland continues to be a leader in technology and innovation for the net-zero economy”.