Scottish government commits £62m to energy transition projects

A “net zero solution centre” and hydrogen hub are among the projects expected to be supported by a £62 million energy transition fund from the Scottish government.

The fund has been set up to help the energy sector north of the border recover from the dual economic impacts of Covid-19 and the oil and gas price crash.

Other projects set to be considered for funding include an “energy transition zone” business park in Aberdeen.

The announcement of the fund said it would seek to position the north east of Scotland as a hydrogen model region, contributing early funding to projects including the Acorn project, which will transform North Sea natural gas into hydrogen and capture the carbon emissions.

Economy secretary Fiona Hyslop said: “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 the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”

The net zero solutions centre will be led by the by Oil and Gas Technology Centre. Its chief executive Colette Cohen said: “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.”

Claire Mack, chief executive of Scottish Renewables, said welcomed the announcement and  its reiteration of the importance of pursuing a green, low-carbon recovery from the coronavirus pandemic.

She said: “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 wellbeing 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.”