Scottish Government launches £62m Energy Transition Fund

Scottish Government launches £62m Energy Transition Fund

The Scottish Government has today announced a £62m Energy Transition Fund support package to help deliver a net zero future – and the plans include a pledge to fund a hydrogen hub in Aberdeen.

Set up to help the energy sector recover from the dual economic impacts of Covid-19 and the oil and gas price crash, the investment, with a focus on the North East, underpins the region’s ambitions to become a world leader in the transition to net zero.

Major projects to be considered for funding include a global underwater hub, net zero solution centre projects, a hydrogen hub, the Acorn project and an energy transition zone.

The fund will position the North East of Scotland as a hydrogen model region, contributing early funding to projects including: Acorn CCS & Acorn Hydrogen; Aberdeen Vision; and the Aberdeen Hydrogen Hub.

  • Acorn Hydrogen, located at the St. Fergus gas terminal, seeks to produce hydrogen from natural gas and the linked Acorn CCS project would capture and store the CO2 safely and permanently in North Sea reservoirs.
  • The Aberdeen Hydrogen Hub presents the opportunity to use green hydrogen in the transport sector.

Economy Secretary Fiona Hyslop said, “This is an extremely difficult time for our business community and we recognise the need to do all we can to help the recovery of key sectors of the economy and Scotland’s regions.”

“This package of investment for the North East will support our energy sector as it recovers from the impact of Covid-19 and will help us make significant progress as we move towards net zero by 2045.”

“Aberdeen is recognised globally as a centre of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition.”

“It is vital we move quickly to seize the opportunity to take forward a green, low-carbon recovery and support the workforce as the energy sector diversifies.”

“Now is an opportune time to re-imagine the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”

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