Decommissioning fund awards

£1.1 million to applicants in first round of funding.

The first awards from the Decommissioning Challenge Fund has seen seven projects across Scotland offered a share of £1.1 million.

This will provide opportunities for the oil and gas supply chain to benefit from the decommissioning of North Sea infrastructure.

Grant offers have been made to projects in Dundee, Methil, Montrose, Ardersier, Stornoway and Hunterston. The projects will support work towards infrastructure improvements for decommissioning at ports and yards, including the installation of the UK’s largest permanent quayside crane in Dundee. 

The second round of funding is now underway and a number of innovative and exciting projects are being considered for a grant offer, subject to the completion of due diligence.

A further six projects from the second round – including two specialist decommissioning equipment projects in Shetland - remain under consideration, with a total value of £1.4 million.

During a visit to Stornoway Port Authority – one of the projects to receive a grant offer - Economy Secretary Keith Brown said:

“Companies across the supply chain are actively engaged in decommissioning projects, with Scottish based firms having secured more than half of the value of contracts awarded.

“Our Decommissioning Challenge Fund is a clear signal to the market to think seriously about decommissioning – a market forecasted to be worth £17 billion by 2025 - and to plan and invest accordingly.

“In spite of the competition, Scotland has distinct advantages and assets that make it an attractive offer – and we are doing everything possible to stimulate investment and ensure our oil and gas sector remains competitive and attractive for decades to come.”


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.


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