A multi-million pound fund has been set up to help the energy sector recover from the dual economic impacts of coronavirus (COVID-19) and the oil and gas price crash.

The £62 million Energy Transition Fund will support businesses in the oil, gas and energy sectors over the next five years as they grow and diversify and will help attract private sector investment in the region.

The investment, with a focus on the North East, underpins the region’s ambitions to become a world leader in the transition to net zero, helping Scotland meet its ambitious targets on climate change.

Major projects to be considered for funding include a Global Underwater Hub, Net Zero Solution Centre projects, a Hydrogen Hub, the Acorn project and an Energy Transition Zone.

The investment will also benefit the wider Scottish energy sector and supply chain, working with local businesses to support sustainable jobs and maximize inclusive economic growth across the country.

Economy Secretary Fiona Hyslop said “This is an extremely difficult time for our business community and we recognize the need to do all we can to help the recovery of key sectors of the economy and Scotland’s regions. This package of investment for the North East will support our energy sector as it recovers from the impact of COVID-19 and will help us make significant progress as we move towards net zero by 2045.

“Aberdeen is recognized globally as a center of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition. It is vital we move quickly to seize the opportunity to take forward a green, low-carbon recovery and support the workforce as the energy sector diversifies. Now is an opportune time to re-imagine the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”

Chair of Opportunity North East Sir Ian Wood said “We very much welcome today’s timely funding announcement from the Scottish Government to help strengthen the North East of Scotland’s growing position as a global integrated energy transition cluster creating a lot of employment over the next 20 years."

Oil & Gas UK chief executive Deirdre Michie said “The support from the Scottish Government today is good news for jobs, supply chain companies and energy communities. This significant funding recognizes the essential role of Scotland’s offshore oil and gas industry in realizing a net zero Scotland by 2045."

Chief executive of the Oil & Gas Technology Centre Colette Cohen said “The creation of this fund to accelerate the transition of the energy sector to a new and exciting net zero future is very welcome news. We look forward to working with industry and government to deliver these exciting programs and make sure the North East of Scotland continues to be a leader in technology and innovation for the net zero economy.”