Offshore Renewable Energy Catapult and OGTC, formerly the Oil and Gas Technology Centre, have released new analysis showing North Sea energy sector jobs could fall by at least 20% in the coming years without urgent investment in the clean technologies needed to create a net zero offshore energy system.
The organisations have called for up to £416bn of investment over the next 30 years in a Net Zero North Sea, which they say could unlock £125bn annual value for the UK economy and support 232,000 jobs by 2050 – up 66% from today.
Failure to act now, with a clear vision, risks the UK rapidly becoming a buyer – rather than a supplier – of green energy, green technology and green jobs – leaving huge economic value on the table, they added.
The report ‘Reimagining a Net Zero North Sea: an integrated energy vision for 2050′ claims the oil and gas and renewable sectors have an opportunity to work together and invest in technologies including floating offshore wind, green and blue hydrogen and carbon capture.
The report presents three scenarios to reimagine tomorrow’s North Sea, modelled on the Committee on Climate Change’s Further Ambition scenario.
Each sees the UK achieve its net zero goal by 2050, using a combination of energy solutions to meet demand, but delivering greatly differing levels of economic benefits and green jobs.
In the Emerging scenario, renewable energy plays an increasing role, with gas still a significant contributor to the offshore energy mix and a significant requirement for carbon capture and storage (CCS).
In Progressive, an increased share of offshore renewables dominates the electricity market alongside a blue/green hydrogen mix, with a major role for CCS.
Transformational outlines an energy system which is driven by offshore wind and green hydrogen, with oil and gas demand matched by clean domestic supply.
The report was welcomed by UK Energy Minister Kwasi Kwarteng, who said: “Protecting highly skilled jobs in the oil and gas industry is important to our net-zero aspirations, as we need the same skills, businesses and infrastructure to underpin net-zero solutions.
“That’s why we have committed to supporting the energy transition with a transformational North Sea Transition Deal and I look forward to working alongside industry to deliver on our world-leading target to achieve net zero greenhouse gas emissions by 2050.”
Scotland Energy Minister Paul Wheelhouse added: “The three scenarios outlined provides us with further intelligence to support and accelerate the development of an updated integrated energy vision, building on our 2017 Scottish Energy Strategy.
“An integrated offshore energy system –including carbon capture, utilisation and storage and the use of hydrogen –can help Scotland and the UK meet our challenging greenhouse gas emission reduction targets in the timescale necessary for action, while also supporting Europe’s decarbonisation.
“The skills, expertise and infrastructure of the oil and gas sector and its supply chain will be vital in unlocking these opportunities and contributing to development of the great potential for offshore wind, floating wind and marine energy deployment in Scotland’s waters.”
OGTC chief executive Colette Cohen said: “These detailed scenarios paint a picture of what the UK’s offshore energy system could look like by 2050… There are tremendous opportunities for the UK, but we need strong alignment and urgent action from industry, governments and regulators to realise these benefits.”
ORE Catapult chief executive Andrew Jamieson said: “The UK leads the world in offshore renewable energy and we now have a very real opportunity to capitalise on this and reshape an economy around green energy.
“Leveraging the innovation, skills, experience and investment of our oil and gas industry is imperative to seizing this moment, to protect and create thousands of jobs and deliver net zero”.