Scottish Government launches £62m Energy Transition Fund

The Scottish Government has launched a £62 million (€69 million) fund to help the energy sector recover from the COVID-19 pandemic.

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

According to the government, the investment fund, which has a focus on the north-east of Scotland, underpins the region’s ambitions to become a world leader in the transition to net zero, helping the country meet its ambitious climate change targets.

Major projects to be considered for funding include Net Zero Solution Centre projects, a Global Underwater Hub, a Hydrogen Hub, the Acorn project and an Energy Transition Zone. The fund will also position the north east of Scotland as a “hydrogen model region”, contributing early funding to projects including Acorn CCS & Acorn Hydrogen, Aberdeen Vision and the Aberdeen Hydrogen Hub. The Aberdeen Hydrogen Hub presents the opportunity to use green hydrogen in the transport sector.

Scottish Economy Secretary Fiona Hyslop said: “This is an extremely difficult time for our business community and we recognise the need to do all we can to help the recovery of key sectors of the economy and Scotland’s regions.

“This package of investment for the north east 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.”

The city of Aberdeen is recognised globally as a “centre of excellence” in oil and gas, according to Hyslop, and this funding will help to ensure that the knowledge, skills and expertise it has to offer will play an important role in the energy transition. She added: “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.”

Chair of Opportunity North East, Sir Ian Wood, commented: “We very much welcome today’s timely funding announcement from the Scottish Government to help strengthen the north east of Scotland’s growing position as a global integrated energy transition cluster creating a lot of employment over the next 20 years.”

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