The North Sea Transition Deal
The North Sea Transition Deal, which was announced in March 2021, supports the industry’s transition to clean, green energy and a secure future for high-skilled oil and gas workers and the supply chain.
The North Sea Transition Deal recognises that the oil and gas industry will have a critical role in maintaining the UK's energy security through the transition to net zero carbon by 2050. Domestically produced gas still met approximately 46 percent of the country’s supply of gas in 2019 and the Climate Change Committee forecasts our continued need for fossil fuels for years to come.
The North Sea Transition Deal between the UK Government and oil and gas industry will support workers, businesses, and the supply chain as it transitions to a net zero future by harnessing the industry’s existing capabilities, infrastructure, and private investment potential to exploit new and emerging technologies such as hydrogen production, Carbon Capture Usage and Storage and offshore wind – as well as offshore decommissioning.
Through the Deal, the oil and gas sector and government will work together over the long-term to deliver the skills, innovation and new infrastructure required to decarbonise North Sea production, as well as other carbon intensive industries. Not only will the Deal support existing companies to decarbonise in preparation for a net zero future, but it will also attract new industrial sectors to base themselves in the UK, develop new export opportunities for British businesses, and secure new high-value jobs.
Through the package of measures, the Deal is expected to support up to 40,000 jobs across the supply chain and is expected to cut pollution by up to 60 million tonnes by 2030 including 15 million tonnes from oil and gas production on the UK Continental Shelf - the equivalent of annual emissions from 90% of the UK’s homes.
The North Sea Transition Deal can be viewed here.