£4 million support for decommissioning

Funding of £4 million has been announced to help maximise the economic benefit to Scotland from the  decommissioning of North Sea infrastructure, following the success of previous projects.

The money from the Decommissioning Challenge Fund is in addition to the £10 million committed in the first three rounds of the fund in a number of locations including Shetland, Kishorn, Aberdeen, Dundee, Leith and Hunterston.

It will provide support for projects to enhance the decommissioning market and the supply chain in Scotland.

Announcing the funding, Scotland’s Energy Minister, Paul Wheelhouse, said:

"Industry reports tell us that £15.3 billion is forecast to be spent in the UKCS between 2018-2027, with further market demand beyond this. This represents a great opportunity for Scotland’s supply chain and I am delighted to announce this £4 million fund.

“Scotland’s Energy Strategy highlights the significant economic opportunities that decommissioning offers, and commits to enhancing our skills and capacity. As the industry continues to build on established capabilities and internationally recognised expertise, such as in well plugging and abandonment techniques, the fund plays a crucial role in supporting the future development of this growing industry.

“Decommissioning North Sea infrastructure will help Scotland’s supply chain gain an even higher share of North Sea projects and capitalise global market opportunities by exporting knowledge and experience. This fund will support innovation in the supply chain, further cost reduction and improve the recognised skills of the Scottish workforce - which is why it has proved so popular with businesses.”

Background

The Decommissioning Challenge Fund is open to expressions of interest from 15 July to 2 September.

This latest round will deliver capital and resource funding for projects in financial year 2019/20. Previous funded projects will increase Scottish decommissioning capabilities in the short-term, and include amongst them port infrastructure upgrades and innovative technological development spanning improvement for plugging and abandonment to onshore decommissioning and waste handling.