Sector deal between government and the offshore oil and gas
industry.
North Sea Transition Deal:
one year on
Details
The North Sea Transition Deal sets out an ambitious plan for how
the UK’s offshore oil and gas sector and the government will work
together to deliver the skills, innovation and new infrastructure
required to meet stretching greenhouse gas emissions reduction
targets.
The Deal aims to support and anchor the expert supply chain that
has built up around oil and gas in the UK, to both safeguard and
create new high quality jobs. The Deal will transform the sector
in preparation for a net zero future and catalyse growth
throughout the UK economy.
March 2022: One year on
One year after the publication of the North Sea Transition Deal
in March 2021, government and industry continues to be committed
to work together to deliver significant progress in implementing
the commitments that were made.
This report highlights the progress made to date across a number
of areas in the Deal, including:
- supply decarbonisation
- developing CCUS and hydrogen
- transforming the supply chain
- aligning cross-sector energy training and standards to
facilitate workforce mobility
It also sets out the priority areas that government and industry
have identified to enable us to continue to build on our success.
Details of the deal
The deal includes:
- early reductions in offshore production emissions of 10% by
2025; 25% by 2027; and 50% by 2030, against a 2018 baseline, to
meet the sector’s aim of creating a net zero basin by 2050. This
will be supported by joint work to address the commercial and
regulatory barriers to electrification of offshore platforms to
realise these targets
- investment of up to £14-16 billion by 2030 in new energy
technologies, with supported by business models to enable
CCUS and
hydrogen at scale
- a voluntary industry target of 50% local UK content across
the lifecycle for all related new energy technology projects by
2030, as well as in oil and gas decommissioning. This will be
supported by the appointment of an industry supply chain champion
who will support the coordination of opportunities with other
sectors
- a 60Mt reduction in
greenhouse gas emissions, including
15Mt through the progressive decarbonisation of
UKCS production over
the period to 2030
- support for up to 40,000 direct and indirect supply chain
jobs in decarbonising UKCS production and the
CCUS and
hydrogen sectors
