The UK government has today announced (Wednesday 24 March) that it will deliver a transformational deal in partnership with the UK oil and gas industry to tackle climate change and deliver key aspects of their ten-point plan.
The deal is the first of its kind by any G7 country, setting an example of how oil and gas producing countries can move fairly towards a lower carbon future in a way which supports the economy, jobs, and energy communities across the UK.
Developed in partnership with the leading representative body for the sector, OGUK, the North Sea Transition Deal outlines over 50 government and industry actions to accelerate moves towards the government’s target of net zero emissions by 2050.
Key commitments in the North Sea Transition Deal include:
- The sector setting early targets to reduce emissions by 10% by 2025 and 25% by 2027 and has committed to cut emissions by 50% by 2030.
- Joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on Carbon Capture Usage and Storage, and up to £10 billion for hydrogen production.
- By 2030, the sector will voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK.
- The appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind.
The deal will help to:
- Unlock up to £16 billion in investment over the next decade in crucial low carbon?solutions including CCUS and hydrogen.
- Support the creation of?up to?40 000 new energy jobs in industrial heartlands across the UK.?
- Cut UK emissions by 60?million?t, with 15?million?tonnes?of reductions?from industry production by 2030?– the equivalent of annual emissions from 90% of the UK’s?homes.?
- Boost the world-leading infrastructure – carbon capture – the Committee on Climate Change says is necessary to tackle climate?change.?
- Kickstart hydrogen here in the UK, building a platform to provide an alternative for heating, heavy industry, and?transport.?
- Ensure energy communities like Aberdeen and Teesside can successfully transition, retaining jobs and skills and creating a more diverse and inclusive?workforce.??
- Reduce?reliance on imported oil and gas – and be accountable for associated?emissions.
It comes after the sector published Roadmap 2035: a blueprint for net zero, in 2019, and was one of the first industry responses to the government’s climate change commitments.
The deal has been agreed between Business and Energy Secretary Kwasi Kwarteng on behalf of the UK Government and OGUK Chief Executive Deirdre Michie on behalf of industry.
Commenting, OGUK Chief Executive Deirdre Michie OBE said:
“The North Sea Transition Deal is a transformative partnership which will harness the expertise of the UK offshore oil and gas industry to urgently meet the country’s climate ambitions of net zero emissions by 2050.??“It will unlock billions of pounds of investment and see government and industry work together to deliver a homegrown energy transition, realising innovative low carbon solutions that can be exported globally.?
“The Deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy. It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
The March 2021 issue of World Pipelines includes: a regional report on pipeline projects in Asia-Pacific; a summary of the latest and best construction equipment courtesy of the annual Heavy Equipment Review; a welding-focused Q&A; and technical articles on hot tapping, sustainable steel and decommissioning.?
Read the article online at: https://www.worldpipelines.com/regulations-and-standards/24032021/north-sea-transition-deal-to-deliver-home-grown-transition-towards-government-net-zero-targets/