Scottish government provides £26m to help green energy transition

An energy transition zone in Aberdeen is being allocated £26m by the Scottish government to help the transition from oil and gas jobs to green energy.

This almost matches funds provided by the UK government.

The zone aims to transform the area into a hub for cleaner energies such as offshore wind and hydrogen.

Planned projects include manufacturing for floating offshore wind farms, a skills academy and facilities for testing hydrogen power.

The Aberdeen Energy Transition Zone (ETZ) is being built south of Aberdeen harbour and is expected to directly support 2,500 green jobs by 2030, alongside a further 10,000 transition-related jobs.

The Scottish government money comes from its five-year £62m energy transition fund.

The fund has already provided £6.5m for a global underwater hub as well as £4.65m to Aberdeen City Council to expand its hydrogen bus fleet.

Further funding announcements are expected to be made in the coming months.

Net Zero, Energy and Transport Secretary Michael Matheson said: "The Scottish government is wholly committed to ending our contribution to climate change by 2045, and doing so in a way that ensures a just transition to net-zero, making sure no-one is left behind.

"One year ago, we launched the £62 million energy transition fund, recognising the impact of Covid-19 on the energy, but also the need to support our energy sector to grow and transition in a fair way."

He said urgent, collective action was needed to ensure transition to a net-zero economy.

"By capitalising on our strengths in energy, innovation, and our skilled workforce, Scotland can show the rest of the world how it's done - and ensure our people, businesses and communities are at the forefront of our new green economy," he said.

Maggie McGinlay, chief executive of ETZ, said: "ETZ Ltd's clear ambition is to transform the region into a globally-integrated energy cluster, focused on accelerating to net zero through energy transition activities. Today's announcement, alongside the UK government's commitment of similar levels of funding toward the project, will help ensure this ambition becomes a reality.

"The north east is uniquely positioned within Scotland and the UK to take advantage of this great opportunity. As we continue to transition from oil and gas, the Energy Transition Zone will enable us to develop a world-class supply chain and create significant new green employment and investment opportunities."

The oil and gas industry is estimated to support more than 20,000 direct jobs in the Aberdeen area.

The Scottish government has set itself a legally-binding target to cut greenhouse gas emissions to net zero by 2045, five years ahead of the date set for the UK as a whole.

But earlier this week, it emerged it had again missed its target for reducing emissions. Figures for 2019 show they fell 51.5% against the baseline, well short of the 55% target.