The UK government has launched a consultation on how to ensure the oil and gas industry and its workers can take advantage of the expected growth in clean energy
The consultation explores how to harness the North Sea’s existing infrastructure, natural assets and expertise to deploy new technologies – like hydrogen, carbon capture and storage, and renewables – to create skilled jobs and meet the UK’s climate obligations.
It is estimated that the offshore renewables workforce, including offshore wind, CCUS and hydrogen, could increase to between 70,000 and 138,000 in 2030.
New proposals could also see changes to the role of North Sea Transition Authority, as the regulator of UK oil and gas, offshore hydrogen, and carbon storage industries.
This includes ensuring the authority has the regulatory framework it needs to support the government’s vision for the long-term future of the North Sea and enable an orderly and prosperous transition to clean energy.
The government said it is committed to working with industry, communities, trade unions and wider organisations to develop a plan that will ensure a phased transition for the North Sea – creating tens of thousands more jobs in offshore renewables estimated by 2030.
It added that it recognises the call of workers and trade unions for a coordinated plan to protect good jobs, pay terms and conditions in the North Sea, and commits to shaping this plan with workers and unions.
The consultation also includes delivering the government’s commitment not to issue new licences to explore new oil and gas fields in the UK, in line with the science of what is required to keep global warming to 1.5 degrees.
The consultation also engages with industry on how to manage existing fields, which will continue to make an important contribution during the clean energy transition, for the entirety of their lifespan.
Separately, HM Treasury and HM Revenue and Customs are confirming that the Energy Profits Levy will end in 2030.
They are consulting on what a new regime could look like, to respond to any future shocks in oil and gas prices.
The government said it will work closely with the sector and other stakeholders to develop an approach that protects jobs in existing and future industries and delivers a fair return for the nation, during times of unusually high prices.
This comes after the government has backed new investment into Scotland’s clean energy future, awarding £55.7m to the Port of Cromarty Firth, securing facilities needed for the rapid development of new floating offshore wind farms and ensuring that they are built from the UK.
Energy Secretary Ed Miliband (pictured) said: “The North Sea will be at the heart of Britain’s energy future. For decades, its workers, businesses and communities have helped power our country and our world.
“Oil and gas production will continue to play an important role and, as the world embraces the drive to clean energy, the North Sea can power our Plan for Change and clean energy future in the decades ahead.
“This consultation is about a dialogue with North Sea communities – businesses, trade unions, workers, environmental groups and communities – to develop a plan that enables us to take advantage of the tremendous opportunities of the years ahead.”
Dan McGrail, chief executive at RenewableUK said: “The biggest offshore wind farms in the world are being built in the North Sea and even more ambitious projects are being planned.
“Offshore wind is at the very heart of the government’s mission to reach clean power by 2030 and net zero by 2050, and the industry also offers the UK one of its biggest opportunities for job creation, industrial regeneration and economic growth.
“The North Sea is already playing a crucial role in powering the UK and this is set to grow in the years ahead.
“A future focused on offshore wind isn’t just cleaner – it provides a more stable energy system for billpayers as we will be less exposed to volatile international fossil fuel prices.
“Offshore wind also offers opportunities for skilled workers from other industries to transfer into this dynamic and innovative sector.”