Plans to centre the North Sea at the core of Britain’s clean energy future and propel economic development are under government consultation.
UK government seeks advice on strategy to guarantee a rich and sustainable transition for oil and gas and release the clean energy future of the North Sea.
Under the government’s clean energy superpower aim, this strategy backs business to make the North Sea a world-leader in offshore sectors including hydrogen, carbon capture and wind.
By closing the Energy Profits Levy and consulting on a new regime to increase investment in jobs and growth, it also provides long-term predictability on the fiscal scene for the oil and gas sector.
While executing the pledge not to issue new licenses to explore new fields, consultation gives industry clarity on the lifespan of oil and gas projects by pledging to preserve existing fields for their lifetime and work with business and communities on a planned transition.
On March 5, the government started a consultation aiming at putting the North Sea, its people, businesses, and supply chains first in Britain’s clean energy future to propel economic development and implement the Plan for Change.
This would encourage local community investment, lower carbon emissions, enable the UK to become energy secure, and boost private investment into the technologies that will provide the next generation of decent jobs for North Sea workers.
Building on the UK’s world-class oil and gas legacy, the consultation outlines the next actions in the government’s overall aim for the North Sea to make it a global leading example of an offshore renewable energy economy. Apart from preserving current oil and gas fields and sustaining continuous domestic production, which are vital for the energy system of the United Kingdom and will remain so for decades to come, the government wants to stimulate the economy by means of the development of clean technologies so safeguarding the nation’s energy security in the process. The government must thus make sure that the oil and gas sector as well as its employees may benefit from a clean energy future.
HM Treasury and HM Revenue and Customs separately certify that the Energy Profits Levy will finish in 2030. To react to any future shocks in oil and gas prices, they are discussing what a new government could look like. During times of very high pricing, the government will closely collaborate with the industry and other stakeholders to create an approach that preserves jobs in present and future sectors and generates a fair return for the country. The government will make sure the oil and gas sector has the long-term clarity it requires on the future fiscal scene, therefore supporting investment and safeguarding of companies and employment both now and going forward.
Tens of thousands of offshore renewable energy projects projected by 2030 will enable a progressive transition for the North Sea, so the government is dedicated to engaging with business, communities, trade unions, and wider organisations to produce a plan that will guarantee this.
The government promises to shape this strategy with workers and unions since it understands the demand of workers and trade unions for a coordinated approach to safeguard excellent jobs, pay terms and conditions in the North Sea, and guarantees.
In keeping with the science of what is needed to prevent global warming to 1.5 degrees, the consultation also covers delivering the government’s pledge not to grant new licences to explore new oil and gas reserves in the UK. The consultation also interacts with businesses on how to run current fields, which will be crucial for the whole lifetime of the clean energy transformation.
This follows the government’s support of fresh investment in Scotland’s clean energy future, funding the Port of Cromarty Firth £55.7 million to guarantee vital facilities required for the fast expansion of new floating offshore wind farms and guarantees their UK construction.
With cleaner, reasonably priced, indigenous electricity, the UK can regain control of its energy and safeguard family and national budgets from rising fossil fuel prices by sprinting to fulfil this purpose. Britain must thus also cut its reliance on oil and gas, so exposing customers to unstable world energy markets since its price is established on foreign markets.
The North Sea will be vital to Britain’s energy future, said Energy Secretary Ed Miliband. Its employees, companies, and local communities have powered our nation and planet for decades.
As the globe adopts the move towards clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead. Oil and gas production will continue to be vital.
This survey is about a conversation with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to create a plan that enables us to seize the great possibilities of the years ahead.
Protecting the North Sea’s jobs and investment over decades to come depends on diversifying its businesses while domestic output is controlled. Today’s consultation looks at how to use the North Sea’s existing infrastructure, natural assets, and world-leading expertise to implement new technologies including hydrogen, carbon capture and storage, and renewables to generate skilled jobs, meet the UK’s climate targets, and establish the UK a clean energy superpower.
Between 70,000 and 138,000 offshore renewable workers—including offshore wind, CCUS and hydrogen—could be employed by 2030, according to estimates. By 2025, an active carbon capture sector alone is predicted to bring about a gross value of roughly £5 billion annually for the UK economy.
As the regulator of UK oil and gas, offshore hydrogen, and carbon storage sectors, new suggestions could also see modifications to the function of North Sea Transition Authority. This involves making sure the authority has the legislative framework it requires to support the government’s goal for the long-term future of the North Sea and enabling an orderly and profitable transition to renewable energy.
With the largest ever investment in offshore wind and up to £21.7 billion funding over the next 25 years for carbon capture and storage and hydrogen projects, the government has already acted quickly in advancing clean energy businesses. Along with the founding of a National Wealth Fund and Great British Energy, which has its headquarters in Aberdeen, both of which will unlock major investment in clean power projects all throughout the UK and assist in the creation of thousands of highly skilled jobs.
The government has also consulted on amended environmental guidance offshore oil and gas projects and will reply to provide confidence to the sector and enable developers to resume seeking clearance for already-licensed projects. This is in line with a Supreme Court decision last year mandating authorities to take scope 3 emissions, or burning of oil and gas, into account while assessing the environmental impact of new projects.
