Aberdeen Energy Transition Zone set for £60 million boost as SDI withdraws from oil and gas funding support
Key themes from last week’s EIC-led Energy Export Conference included the ongoing roll-out of Aberdeen’s Energy Transition Zone in the North East of Scotland. EZT now had £60 million of funding support committed from the UK Government, Scottish Government and Opportunity North East (ONE) with the objective of driving oil and gas expertise and skills into the rapidly emerging net zero world.
The project is not without its challenges given the offshore wind supply chain has evolved primarily outside the UK and Scottish Development International (SDI) earlier this year announced it would no longer provide funding to oil and gas service companies. As a GlobalScot network member this is a major concern and compounds the already current woeful approach of the banks in the UK to SMEs. Will the private equity world and UK Export Finance be able to pick up the reins and support UK SMEs to rise to the net zero challenge?
There is a US$6 trillion energy projects market out there, and while the net zero share is burgeoning in the year of COP26, 80% is currently oil and gas.