Decommissioning fund awards

£1.5 million to applicants in second round of funding.

Six projects across Scotland will be offered a share of £1.5 million in the second round of Decommissioning Challenge Fund awards.

Grant offers have been made to six projects in Edinburgh, Glasgow, Kishorn, Shetland and Orkney.

The Scottish Government’s Decommissioning Challenge Fund supports infrastructure improvements and innovation to deliver decommissioning of North Sea oil and gas infrastructure. Projects in this round include innovation in well plugging and abandonment, dry dock upgrades, quayside strengthening investigation and two specialist decommissioning equipment projects in Shetland.

During a visit to Dales Marine Ltd at the Imperial Dry Dock in Leith Docks– one of the projects to receive a grant offer – Minister for Business, Innovation and Energy, Paul Wheelhouse, said:

“Decommissioning offers a variety of opportunities for Scottish based firms, such as Dales Marine, right across the supply chain.

“I am delighted to contribute to this ambitious project to upgrade the Imperial Dry Dock in Leith, which will ensure the future of this historically significant site for vessel decommissioning, keeping skilled jobs within our economy.

“Our Decommissioning Challenge Fund is a clear signal to the market to think seriously about decommissioning – a market that is forecast to be worth up to £17 billion over the period to 2025 – and to plan and invest accordingly. “


Scotland’s new Energy Strategy, launched in December, recognises that decommissioning offers significant economic opportunities, and commits to enhance the capabilities and capacity in Scotland.

Alongside the Decommissioning Action Plan - launched by Scottish Enterprise and Highlands and Islands Enterprise in 2016 - the Fund will help Scotland's oil and gas sector make the most of decommissioning opportunities at home and abroad. 

A DCF Programme Board, drawn from government and industry, and chaired by the Director for Energy & Climate Change, is overseeing the delivery of the fund.


Project Name

Lead Organisation


Upgrade and improvements of Dry Dock gates and infrastructure facilities

Kishorn Port Ltd

Permanent pumping system for the dry dock, concrete repairs for extra protection, roadway surfacing for easy access and fendering for flood tunnels to prevent damage to flood covers.

Increased capacity of equipment for temporary/reusable steelwork

Lerwick Engineering & Fabrication Ltd

The purchasing of a CNC plasma profiler, and a high capacity bandsaw and material handling system.

Tubular Cutting Tool

Downhole Energy

The project has a design for a new type of cutting tool, increasing the speed of cutting.

Shetlands Specialist Decommissioning Service Provider

EMN Plant Ltd

The project is focussed on initial plant and machinery requirements, as well as upskilling staff.

Lyness oil and gas decommissioning base

Orkney Isles Council (OIC)

The project represents the invasive investigation, geo-technical analysis, and bench testing of the sub-soils within the development site.

Going Full Circle

Dales Marine Services Ltd

The gates and quayside of the Leith site are around 100 years old. Investment is for new gates and operating systems and strengthening of surrounding berths.



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