Information

Scotland's energy sector - unlocking investment: joint business plan

Focusses on the actions a number of stakeholders need to take in order to unlock investment in projects that support net zero, and will generate economic benefit across Scotland and the wider UK over the next few years.


Annex: Oil & Gas Transition

Barriers and actions

Barrier #1: Levels of Investment Required to Reduce Operational Emissions of Oil and Gas Production

Stakeholders: Scottish Government; UK Government;

  • Implement a Robust Emission Trading Scheme that provides a level playing field and prevents delocalisation (carbon leakage).
  • Implementation of new OGA Strategy.

Barrier #2: Lack of Investment Required to Support Offshore Electrification

Stakeholders: UK Government;

  • Use of auction revenues for certificates to promote deep decarbonisation efforts: fuel switching electricity invest in cables transformers.
  • Coordinated investment to achieve economies of scale in different parts of UKCS basin (OGA responsible).

Barrier #3: Complex Skills Landscape and Risk of an Unmanaged Transition for the Oil and Gas Workforce

Stakeholders: Scottish Government; UK Government;

  • Continued support for the Energy Skills Alliance and it's initiatives
  • Continued support for North Sea Transition Deal
  • Alignment with UK green skills initiatives (e.g. Green Jobs Task Force)

Barrier #4: Need for Greater Support for the Supply Chain to Continue Developing

Stakeholders: Scottish Government; UK Government;

  • Provide international support for supply chain companies active in the supply decarbonisation and energy transition space (e.g. through bodies like SCDI)
  • Showcase downstream local capabilities in emissions reduction for use in offshore application
  • Support cross-sector knowledge sharing e.g. with marine renewables cluster

Results

  • Continued oil and gas production and development to provide secure energy sources during transition
  • Scotland as a leading global provider of low emission oil and gas.
  • Jobs and maintaining supply chain in support of energy transition
  • Integrated offshore electricity networks with renewables and taking advantage of synergies
  • Integrated energy companies and supply chains across offshore sector

Example projects

  • Orion project (Renewables / O&G Integration) Provision of clean energy from renewables. Orion will de-risk future hubs via learnings and technology identification. It will create employment across Scotland, deliver between £31 and £220bn in economic impact and aid offshore electrification.
  • Alternative Fuel Gas Technology Zero-carbon retrofit solution for existing gas turbines, enabling to run a blend of 100% zero carbon fuel. It will result in significant inward investment and sustain significant number of O&G jobs.
  • Axis Tension Leg Buoy (TLB) Floating Wind Foundation FEED study to generate employment, subsequent fabrication and demonstration deployment activity, generating £5-6m. Resulting in significant job creation in Scottish fabrication and reduction of CO2 emissions.
  • QL Tech PowerLink Enabling green power from shore to offshore assets. Demonstration unit to be built and tested in Aberdeen resulting in new product line with Scottish IP, and global potential.

Contact

Email: anthony.kinsella@gov.scot

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