The North Sea Transition Deal
The North Sea Transition Deal (NSTD) is the first deal of its kind by a G7 country.
It’s a transformative partnership between the UK Government and the offshore oil and gas sector, which is harnessing the power, people and skills of the industry to help the UK meet net zero emissions by 2050, affordably and at pace.
The deal encompasses five aspects of decarbonisation.
- Carbon capture and storage
- Supply decarbonisation
- Supply chain transformation
- People and skills
THE STORY SO FAR
The North Sea Transition Deal is progressing well, thanks to the efforts of the industry, government and other key stakeholders.
By 2030, the deal will unlock up to £16bn of investment, secure up to 40,000 energy jobs, reduce emissions by up to 60mn metric tons/year and springboard exciting low carbon solutions.
Through collaboration, the deal is addressing the challenge of decarbonising the UK’s oil and gas supply, while ensuring the UK benefits from a homegrown transition to a lower-carbon economy.
OEUK Chief Executive David Whitehouse said:
The North Sea Transition Deal plays an important role in supporting the UK achieving its net zero commitments.
The Deal provides a clear framework for balancing the economic benefits of the North Sea with the need to transition to a low-carbon economy.
This transition presents significant opportunities for the oil and gas industry, which can leverage its expertise to support the development of new technologies, such as carbon capture and storage, and help drive investment in renewable energy and low-carbon infrastructure.
As OEUK, we are committed to working with our members, the UK government, and other stakeholders to realise the full potential of the North Sea Transition Deal and build a sustainable future for all.
North Sea Transition Deal resources
Here the OEUK team provides more insight on the North Sea Transition Deal, agreed in March 2021 with the government, and what it means for the workforce. This transformational deal is the first of its kind by a G7 nation and presents a prime opportunity for companies to take the next big step in leading the UK into a net-zero future.
These online resources comprise an overview of NSTD and its five themes (see above).
The North Sea Deal will help to:
- Support the creation of up to 40,000 new energy jobs in industrial heartlands across the UK.
- Cut UK emissions by 60mn metric tons/year. With 15mn metric tons/year 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 and storage – which 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 transition, retain jobs and skills and create a diverse and inclusive workforce.
- Reduce reliance on imported oil and gas – and their associated emissions.