RISHI Sunak will announce what is billed as a £57 million plus investment in jobs and green growth in Scotland in The Budget today in a move that could provide a boost for the hard-pressed North Sea oil and gas industry.
The funding is intended to help Scotland to become a green energy hub and to maximise the potential for the oil and gas industry to play a key part in the transition from fossil fuels.
READ MORE: Can green energy revolution create enough jobs to make up for Scottish oil decline?
The Treasury said the Chancellor is expected to commit £27 million for the Aberdeen Energy Transition Zone, as a first step in delivering on the Government’s promise for a sector deal for the oil and gas industry.
The Government will also provide £2m to help North Sea industry leaders to develop proposals for the kind of sector deal they have been calling for. Such a deal could help the sector to emerge from the downturn caused by the coronavirus crisis in good enough shape to support the deployment of clean energy technologies on the required scale.
The investment Mr Sunak will announce includes a further £5m for the Global Underwater Hub that is being developed in Aberdeen.
READ MORE: US giant sells bumper North Sea portfolio amid shake-up in area
News of the planned investment was welcomed by industry body OGUK (Oil and Gas UK).
Its chief executive Deirdre Michie said: “ “This funding will help create employment opportunities in new technologies, support the reduction of emissions from production and enable our industry to become part of a new low carbon energy community.”
The Government will also accelerate the provision of £25m funding to support the development of industries ranging from energy to aerospace under Growth Deals agreed for Ayrshire, Argyll and Bute, and Falkirk.
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