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Press Release19th Dec 2023

OEUK: Scottish Budget response

The leading trade body for the offshore energy sector has responded to the Scottish Budget, recognising its focus on building a secure, diverse energy mix for Scotland and the UK.


In the budget statement, Deputy First Minister and Cabinet Secretary for Finance, Shona Robison MSP, stated the importance of the £67 million-pound strategic investment in offshore wind as a catalyst to further private investment in the infrastructure and manufacturing facilities critical to the growth of the sector.


Offshore Energies UK (OEUK) says the energy announcements made today (19 December) have the potential to provide a welcome signal to energy companies, which in turn can help unlock future investment and anchor skills if underpinned by the right environment.


OEUK External Relations Director Jenny Stanning said:


“The decarbonisation of Scotland is one of the greatest opportunities and challenges of our time and will only be delivered through collaboration between public and private capital. Policy decisions and rhetoric made today will be felt for decades to come, so prioritising a transition which is homegrown instead of wholly imported is vital.  


“The announcements made today, and the recognition of the need to create a competitive economy, are a step in the right direction – providing a welcome signal-boost to companies that the Scottish Government is listening to the sector.


“The reality of the energy transition is that we will need both oil and gas and renewables in an integrated system to deliver growth in Scotland and be an export powerhouse. It is essential to have the right investment conditions and environment in Scotland, through supportive policy, that unlocks £200 billion of energy investment over the next decade whilst attracting and retaining the skilled people vital to delivering the transition.


“We will continue to engage proactively with Scottish Government, and indeed politicians of all parties, to make sure we can fully grasp the opportunities of the energy transition and restore confidence to businesses so that investment is unlocked for a secure, strong, and diverse energy future.”


Ends

Notes to editors:

  1. The UK oil and gas sector supports over 200,000 jobs across the country and generated £30 billion in gross value add (GVA) in 2022. In Scotland alone, the sector supports 90,000 jobs and £18.9bn in GVA.
  2. If we can anchor supply chain, ScotWind alone could see £28.8 billion invested in Scotland, with an average investment of £1.4bn per project built and £1bn per gigawatt of capacity built.
  3. To guarantee a homegrown energy future for Scotland and the wider UK, OEUK has asked the Scottish Government to prioritise:
    o Protecting energy security and driving economic growth: Incentivise inward investment in UK energy production through effective energy policy and long-term commitments, utilising Scotland’s manufacturing capability.
    o Delivering a homegrown transition which champions UK technology and innovation: Accelerate offshore wind, hydrogen, and carbon capture and storage projects through a tailored Contracts for Difference (CfD) for Innovation and Targeted Oil & Gas (INTOG) and deploying anticipatory capital into the supply chain to maximise Scotwind potential.
    o Supporting and growing a diverse workforce with good jobs now and for the future: Anchor and grow energy jobs in the UK through supporting a skills passport, growing regional connectivity, and engaging with the current and future workforce.

Issued by the Communications Team, OEUK. Contact [email protected]

Offshore Energies UK is the leading trade body for the UK’s offshore energies industry. Its membership includes over 400 organisations with an interest in offshore oil, gas, carbon capture and storage, hydrogen, and offshore wind. Working together with its members, it is a driving force supporting the UK in ensuring security of energy supply while helping to meet its net zero ambitions.