More than £26 million is being invested in a major initiative — the Energy Transition Zone (ETZ) — designed to accelerate the energy sector’s transition to ‘net zero’ emissions. ETZ, which will be located adjacent to Aberdeen’s new £350 million South Harbour development, is expected to directly support 2,500 ‘green jobs’ by 2030, alongside a further 10,000 transition-related jobs.
The investment will come from the Scottish government’s Energy Transition Fund, a five-year financial package that was launched in June 2020 to support the oil and gas and energy sectors grow and diversify, while helping attract further private investment.
The fund has already provided funding of £6.5 million for a ‘Global Underwater Hub’, as well as £4.65 million to Aberdeen City Council to expand its hydrogen bus fleet.
Announcing the funding, Net Zero, Energy and Transport Secretary Michael Matheson said: “The Scottish government is wholly committed to ending its contribution to climate change by 2045, and doing so in a way that ensures a just transition to ‘net zero’ and making sure no-one is left behind. One year ago we launched the £62 million Energy Transition Fund, recognising the impact of Covid-19 on the industry, but also the need to support our energy sector to grow and transition in a fair way.
“Urgent, collective action is required in order to ensure a just transition to a ‘net zero’ economy. By capitalising on our strengths in energy, innovation and our skilled workforce, Scotland can show the rest of the world how it’s done — and ensure our people, businesses and communities are at the forefront of our new ‘green economy’.”
Maggie McGinlay, ETZ Ltd’s chief executive, added: “The Scottish government’s confirmation of financial support for the Energy Transition Zone is a welcome boost for Aberdeen and the North East of Scotland.
“ETZ’s clear ambition is to transform the region into a globally integrated energy cluster, focused on accelerating to ‘net zero’ through energy transition activities. This announcement, alongside the UK Government’s commitment of similar levels of funding toward the project, will help ensure this ambition becomes a reality.
“As we continue to transition from oil and gas, the Energy Transition Zone will enable us to develop a world class supply chain and create significant new green employment and investment opportunities.”