Chancellor Rishi Sunak is to commit £27 million in Wednesday’s budget to help transform Scotland’s North Sea oil sector into a renewables industry hub.
The green energy boost for the Aberdeen Energy Transition Zone is a first step in plans to turn the oil and gas sector in the North East into a globally centre for cleaner energies such as offshore wind and hydrogen.
The Tory chancellor will boast that the fund is part of a £57 million investment in Scottish business growth in Wednesday’s Budget statement.
Sunak is also expected to announce up to £2 million to support jobs as the oil and gas industry moves into cleaner energy sources and a further £5 million for the Global Underwater Hub in Aberdeen, building on last year’s £1.3 million commitment.
There are over 20,000 direct jobs in the oil and gas sector in and around Aberdeen.
Sunak said: “The measures set out in tomorrow’s Budget will boost Scotland’s transformation into a green energy hub, deliver on our commitment to Net Zero, and deliver a boost that cities and industry need.”
Scotland is expected to receive an extra boost of £25.8 million in funding over the next five years for Growth Deals in the Ayrshire, Argyll and Bute, and Falkirk.
Funds for the Growth Deals already agreed will be delivered over ten rather than 15 years to boost the covid recovery in these areas and help the development of new businesses.
The Growth Deals are delivered with the Scottish Government through regional partnerships led by local authorities.
The Treasury stated that throughout the pandemic it has provide an additional £9.7 billion of funding for the Scottish Government to support people, jobs and public services and protected 779,500 jobs through the furlough scheme.
Another 161,000 self-employed have been helped and more than 90,000 loans worth nearly £3.4 billion have been paid out for Scottish businesses.
