- One year since landmark North Sea Transition Deal was agreed
between UK government and oil and gas industry
- Progress made includes reducing production emissions by 11%,
supporting the development of carbon capture, and setting out a
hydrogen strategy for the UK
- Deal is a key part of the how the UK government is backing
the decarbonisation of the oil and gas sector while protecting
the UK’s energy security
This week marks one year since the UK government and the oil and
gas industry agreed the landmarkNorth Sea Transition
Deal to support the sector’s transition to cleaner energy. As
part of this transition, the government is continuing to back the
North Sea oil and gas sector to ensure security of supply, while
also boosting the UK’s renewables sector to generate more clean,
cheap energy in the UK and reduce exposure to volatile global gas
markets.
The Deal agreed in March 2021 set a clear path for the
decarbonisation of the oil and gas sector, and was the first deal
of its kind by a G7 country, demonstrating the UK’s global
leadership in supporting the oil and gas industry in our
transition to net zero by 2050 and maintaining the UK’s strong
security in energy supply.
The North Sea oil and gas industry has the skills and expertise
to drive forward key parts of the Government’s Ten Point Plan and
Net Zero Strategy, including in the production of low-carbon
hydrogen and roll out of new carbon capture projects.
The North Sea Transition Deal:
One Year On report published today highlights the progress
made in the past year across the five key areas of the Deal:
Supply Decarbonisation; Carbon Capture, Usage and Storage (CCUS);
Hydrogen; Supply Chain Transformation; and People and Skills.
These include a reduction in carbon emissions from offshore oil
and gas production, which have fallen by 11% since 2018-
equivalent to taking around a million cars off the road for the
year - and the delivery of a £1million electrification
competition to drive forward the electrification of oil
platforms to cut emissions. This demonstrates how sourcing gas
locally in the North Sea has less of a carbon footprint than
importing gas from abroad.
In addition, the government has advanced energy policies that
will reduce the UK’s reliance on fossil fuels, including setting
out its strategy to develop a
thriving low carbon hydrogen sector in the UK, and developing
carbon capture in the UK, selecting two carbon
capture clusters to support for deployment in the mid-2020s,
which will be the first clusters to have the opportunity to
benefit from the government’s £1 billion CCUS Infrastructure
Fund.
Speaking at the North Sea Transition Forum in Aberdeen,
Energy Minister said:
“Since our ambitious North Sea Transition Deal was agreed a year
ago, we have made great progress to support the oil and gas
industry and ensure a transition which safeguards energy
security, jobs and expertise.
“We will continue to build on this progress and back our North
Sea sector to maximise domestic production as we transition to
cheap, clean, home-grown energy.”
The oil and gas sector has also made clear progress in delivering
on their commitments in the Deal. Industry has appointed a Supply
Chain Champion, helping the industry secure new economic
opportunities within the lower carbon energy sector, and are
progressing a Supply Chain Strategy to support the wider industry
supply chain to align with the energy transition. They have also
delivered a Methane Action Plan, setting out the path for
industry to reduce methane emissions.
Chief Executive of Offshore Energies UK Deirdre Michie
said:
“The North Sea Transition Deal is a transformative partnership
which has already made great strides this past year to harness
the expertise of our offshore oil and gas industry in helping the
UK meet its climate ambitions of achieving net zero greenhouse
gas emissions by 2050.
“We have already seen great examples of the Deal in action – from
the appointment of a Supply Chain Champion to tangible reductions
in production emissions and good progress on industry
electrification projects.
“We are excited to see what next year brings, as this industry
continues to work together with government to safeguard UK energy
security, secure tens of thousands of jobs and support the
country’s transition to a net zero economy.”
UK Government Minister for Scotland Malcolm Offord
said:
"It's encouraging to see just how much progress we've made in the
year since the North Sea Transition Deal was signed.
Emissions are falling, we're making advances in carbon capture
and striding ahead in the production of energy from sustainable
means such as wind and hydrogen.
"We're proud to be working with the oil and gas industry to
harness the great skills in the North Sea to sustain high-quality
jobs, create new opportunities and ensure security of our
domestic energy supply."
While the UK is driving down demand for fossil fuels on the path
to net zero, there will continue to be ongoing demand for oil and
gas over the coming decades. It is crucial that the UK has a
domestic source of oil and gas to maintain energy security,
preventing reliance on imports, particularly from Russia.
The Deal is a key part of how the UK government is supporting the
managed transformation of the industry, to protect the nation’s
energy security, support high-value jobs, and safeguard the
expertise necessary to achieve a lower carbon future.
