Financial support for Energy Transition Zone | ONE

In tomorrow’s Budget (Wednesday 3 March), Chancellor Rishi Sunak is expected to commit £27 million for the Aberdeen Energy Transition Zone, a first step in delivering on the Government’s promise for a sector deal for the oil and gas industry.  

Sir Ian Wood, Chairman of Opportunity North East, said:

“The Chancellor’s announcement of financial support for the Energy Transition Zone is a hugely welcome boost for Aberdeen and the North East of Scotland.

“Opportunity North East and its partners have maintained a clear ambition to transform the region into a globally integrated energy cluster, focused on accelerating to net zero through energy transition activities. Today’s announcement will help ensure this ambition becomes a reality.

"There is no doubt that the North East is uniquely positioned within Scotland and the UK to take advantage of this massive opportunity. As we continue to transition from oil and gas, the Energy Transition Zone will allow us to develop a world-class supply chain and create new significant green job and investment opportunities.

“We are in advanced discussions with the Scottish Government in terms of securing similar levels of financial support for the Energy transition Zone and are confident we can progress with this exciting new project at pace.

“I’m also particularly pleased that the additional funding is being made available from the UK Government for the North Sea Transition Deal and Global Underwater Hub. Together, these announcements are hugely encouraging for the North East as we continue to play a key role in the green economic recovery."

Highlights

• North East Scotland to receive £27 million funding to support development of green energy 
• Further £5 million funding expected for Global Underwater Hub in Aberdeen 
• £25.8 million in funding will be brought forward over the next five years for faster investment in three Growth Deals in Scotland to support local industries 

Scottish businesses are set to receive a boost to their green energy transition and further investment to create local jobs in key sectors with a more than £57 million investment in tomorrow’s Budget (Wednesday 3 March). 

Chancellor Rishi Sunak is expected to commit £27 million for the Aberdeen Energy Transition Zone, a first step in delivering on the Government’s promise for a sector deal for the oil and gas industry.  

This is set to transform North East Scotland into a globally competitive hub for cleaner energies such as offshore wind and hydrogen as the industry decarbonises and diversifies, supporting green jobs and helping the industry transition on our path to net zero. Recent industry reports suggest that the Aberdeen region supports over 20,000 direct jobs in the oil and gas sector. 

Rishi Sunak is expected to announce up to £2 million to support the continued development of industry proposals for the North Sea Transition Deal and a further £5 million for the Global Underwater Hub in Aberdeen, building on last year’s £1.3 million commitment. These proposals will leverage existing skills and expertise in the area and drive forwards a low carbon future for the area and secure the long-term viability of the energy sector.

The North Sea Transition Deal will support jobs and net zero as the oil and gas industry decarbonises and diversifies to cleaner energies. 

The Chancellor of the Exchequer, Rishi Sunak, said:  

“It’s vital that as we deliver our Plan for Jobs and level-up across the whole UK we build back better in a sustainable way.  

“The measures set out in tomorrow’s Budget will boost Scotland’s transformation into a green energy hub, deliver on our commitment to Net Zero, and deliver a boost that cities and industry need.”