The development of a clean fuels hub on Shetland will get
financial backing from the Scottish Government, Energy Minister
announced ahead of a visit
to Sullom Voe Terminal.
Veri Energy will receive almost £760,000 to support the third
phase of work to develop the hub. When it comes into operation by
2030, it is expected to produce hydrogen and e-methanol, with
manufacturing capacity scaling up into the following decade.
Work to establish the hub will retain and retrain skilled oil and
gas workers, support local businesses and contribute to the
development of clean fuels manufacturing expertise in Scotland.
It will also pave the way towards supplying e-methanol to a
proposed sustainable aviation fuel plant on the site of the
former refinery at Grangemouth.
The Energy Minister said:
Sullom Voe Terminal is a crucial part of Scotland's industrial
landscape. It has been at the heart of Shetland's economy for
many years, providing vital jobs and supporting local businesses,
and I welcome the opportunity to tour such a significant site.
We know it has faced challenges recently because of reduced
activity, so it is absolutely correct that we help where we can
in order to secure a viable future for its valued workers. That
is why the Scottish Government is contributing almost £760,000 to
support Veri Energy as it continues to develop its ambitious
plans for a clean fuels hub.
We need an approach to our energy future that sees us manage oil
and gas activity while seizing the opportunities that come from
increasing the deployment of new technologies and fuel sources.
Our renewables revolution has been two decades in the making, and
the economic opportunities from what comes next could be
transformational.
"That transformation needs to benefit communities right across
Scotland, delivering jobs, energy security and growth
Shetland and our island communities have a vital role to
play in this process. Shetland has been a vital part of Europe's
security for decades and will continue to be for decades to come.
Veri Energy Chief Executive Gavin Templeton said:
This support from the Scottish Government is a strong endorsement
of the strategic opportunity at Sullom Voe. Our clean fuels hub
has the potential to transform nationally significant existing
energy infrastructure into a platform for the production of
e-fuel at scale, creating long-term economic value for Shetland
and contributing to Scotland's net-zero ambitions.
The project will build on the skills, experience and industrial
heritage of the region while helping establish a new centre of
expertise in clean fuels manufacturing. We continue to engage and
work with the SVT owners and are excited to take this next step
and to work with stakeholders across Scotland to realise the full
potential of the opportunity.
Background
The Scottish Government will provide £755,720 to support phase 3
of Veri Energy's work to establish a clean fuels hub at Sullom
Voe Terminal. The company and other partners will provide
additional support.
Phases 1 and 2 were funded by Veri Energy and the Net Zero
Technology Centre at a total cost of £2.2 million.
