An extensive initiative to accelerate the energy sector’s transition to net-zero emissions will receive an investment of more than £26m.
Positioned next to Aberdeen’s new £350 million south harbour development, The Energy Transition Zone will create and sustain 2,500 green jobs by 2030, with a further 10,000 jobs related to the transition.
The investment is part of the Scottish Government’s Energy Transition Fund, the £62 million Energy Transition Fund which started in June 2020, to encourage the oil, gas and energy sectors to diversify, whilst attracting more private investment.
£4.65 million has already been awarded by the fund to Aberdeen City Council to expand its hydrogen bus fleet.
Another key project, the Global Underwater Hub has received funding of £6.5 million.
In the coming months more funding announcements are anticipated.
Net Zero, Energy and Transport Secretary Michael Matheson announced the funding, saying:
“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 industry, but also the need to support our energy sector to grow and transition in a fair way.
“Urgent, collective action is required in order to ensure a just 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.
“I am pleased to announce this financial support for the Energy Transition Zone, which is a hugely exciting project that promises to accelerate our journey to net-zero whilst, crucially, ensuring that journey is fair and creates a better future for everyone.”
Maggie McGinlay, Chief Executive of ETZ Ltd said:
“The Scottish Government’s confirmation of financial support for the Energy Transition Zone is a welcome boost for Aberdeen and the North East of Scotland.
“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.
“There is a lot of work to be done in order to realise this ambition and this will include a programme of extensive engagement with the local communities and businesses to ensure the region’s energy transition ambitions are developed in line with the needs of the community, industry and investors.”
Click here for more on the Energy Transition Zone.
Tentpole projects for the initiative are anticipated to include offshore hydrogen production landing facilities, green hydrogen test and demonstration facilities and high value manufacturing for hydrogen, offshore wind high value manufacturing, a floating offshore wind centre of excellence, and an Energy Skills Academy Hub, amongst others.
All projects funded by the Energy Transition Fund will have Fair Work principles applied, to support the creation of green jobs, and the sustained commitment to the net-zero transition, striving for a net-zero economy.
To learn more about Aberdeen’s zero emission hydrogen double decker bus fleet click here.
