Main Menu

Green boost

Sunak to unveil Aberdeen energy hub in Budget

Rishi Sunak at Tory conference 2020

Rishi Sunak: transition

Chancellor Rishi Sunak will unveil plans to turn north east Scotland into a hub for clean energies as part of a £57 million green agenda to be announced in the Budget.

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

It promises 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.

In what will be seen as a package of pre-Scottish election sweeteners, Mr 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.

Newsletter

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

Mr 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. ” 

He will say that the measures set out in the 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.” 

Follow Daily Business on LinkedIn

Deirdre Michie, chief executive, OGUK, said: “This is an exciting announcement by the Chancellor that will create jobs and help position the UK as a global hub of green energy.

“The UK’s world-leading supply chain is at the heart of this country’s ability to transition to a net zero economy, so these new investments are welcome and recognise the positive role this sector has to play in our energy future.

“We look forward to working closely and quickly with government to finalise the North Sea Transition Deal.”

Scotland is expected to receive an investment boost that reenergises sectors such as infrastructure, aerospace, digital and tourism through the acceleration of £25.8 million in funding over the next five years for the Ayrshire, Argyll and Bute, and Falkirk Growth Deals. 

Reprofiling these deals so they are delivered over ten rather than 15 years will mean:  

– The Ayrshire Growth Deal will receive an extra £3.4 million per year from 2021/22 for the remaining 10 years of the Deal. The Deal has a focus on regeneration, infrastructure and aerospace technology and is expected to leverage private sector investment of more than £300 million, with the potential of creating up to 7,000 new jobs. 

– The Argyll & Bute Growth Deal will receive an extra £800,000 per year from 2022/23 for the remaining 10 years of the Deal. This will lead to faster investment in priority areas such as tourism, housing and digital connectivity. 

– The Falkirk Growth Deal will receive an extra £1.3 million per year from 2022/23 for the remaining 10 years of the Deal. This will lead to faster investment in key areas such as infrastructure improvements to support sustainable travel, tourism and energy. 

Designed to deliver on the Government’s Plan for Jobs and leverage industry strengths in local areas, these deals continue to be delivered collaboratively with the Scottish Government through regional partnerships led by local authorities. 



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.