Liquid Gas UK welcomes the announcement of the £62m fund by Scottish Government to help the energy sector on its transition to Net Zero.

Monday 15th June 2020

Last year, the LPG industry set out its pathway to 100% bioLPG with its 2040 Vision, demonstrating that LPG is a future proof solution for decarbonising rural homes and businesses. One thing missing from the fund is supporting Scottish rural energies, we would welcome dialogue with Scottish Government on this and on how to enable a just transition across Scotland’s entire energy spectrum.

£62 million fund for energy sector

Support package to help deliver net zero future.

A multi-million pound fund has been set up to help the energy sector recover from the dual economic impacts of coronavirus (COVID-19) and the oil and gas price crash.

The £62 million Energy Transition Fund will support businesses in the oil, gas and energy sectors over the next five years as they grow and diversify and will help attract private sector investment in the region.

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, helping Scotland meet its ambitious targets on climate change.

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 investment will also benefit the wider Scottish energy sector and supply chain, working with local businesses to support sustainable jobs and maximise inclusive economic growth across the country.

Background

The £62 million funding package is available to support Net Zero projects, including:

  • A Global Underwater Hub in Aberdeen focused on helping the subsea and underwater sector grow with a focus on diversification and export support. 
  • A new Energy Transition Zone business park adjacent to the Aberdeen South Harbour.
  • A range of innovation projects led by Oil and Gas Technology Centre’s Net Zero Solution Centre.

The fund will also 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.

The Scottish Government will also work with the UK Government and industry to ensure funding supports an Oil and Gas Sector Deal.

 https://www.gov.scot/news/gbp-62-million-fund-for-energy-sector/

The trade association for the LPG and bioLPG industry in the UK