The North Sea Transition Deal celebrated its second birthday in March and industry is busier than ever accelerating our efforts to re-shape the UK’s energy sector.
Reflecting on this milestone gives us a chance to chart progress since our industry signed the Deal with government to jointly support the transition to sustainable and low-carbon energy. It also highlights the opportunities on the horizon.
We know that delivering a carbon-neutral North Sea basin represents a massive challenge, but also presents big prospects. .The transition to a low-carbon energy sector offers a wealth of opportunities, from the development of new technologies to sustaining jobs and generating economic growth. It is well documented that we are advancing on several fronts, guided by the five commitments that comprise the deal: People & Skills, Supply Transformation, Carbon Capture & Storage (CCS), Hydrogen and Supply Decarbonisation.
With just seven years until the 2030 deadline of 50% emissions reduction, we have a lot of work to do. We need to unlock the sector’s potential for deploying floating offshore wind to align with our decarbonisation targets. With INTOG (Innovation and Targeted Oil & Gas) for example, we have the potential to generate a third of the world’s global wind energy, with £260M in licence fees. We are improving how we forecast greenhouse gas emission reductions too, creating a tool for industry to support the pace of change.
We have leapt forward with CCS following licensing round announcements, and the first storage project is scheduled for 2027. We have Hynet and East Coast Clusters approved, and Acorn and Viking finalising their offering – it’s an exciting time for progressing how we will transport and store carbon.
Hydrogen is one of the ‘new kids on the block’, and together with Government we will be focusing on getting the infrastructure in place for this to succeed. There is a real opportunity to develop different ways to conduct contracts within this new market, so we are listening to our members’ feedback regarding what they need to maximise hydrogen production for the UK.
Our industry’s supply chain continues to find ways to be innovative about how it addresses the UK’s energy transition needs. OEUK is working hard to develop the supply chain roadmap to identify capability gaps and help companies gain insight into how they can more effectively meet energy needs now and develop new capabilities for the future. You can expect to hear more about the opportunities ahead as we will be sharing news about examples where our world-class supply chain has been successful in attracting investment.
People and skills are key to making the North Sea Transition Deal happen. We are mapping the skills our workforce needs to be mobile across the entire sector and are progressing the skills passport. The industry’s training organisation Opito plans to deploy the skills passport in Q3 this year. OEUK has developed an online toolkit to champion diversity and equality of opportunity across the sector ensuring we’re well positioned to attract and retain the skills we need to deliver a fair and managed transition to a low carbon economy.
So – lots achieved, but lots more to do. We are on the right path, unlocking opportunities and prioritising investment to make this transition a reality.
The NSTD is a showcase for how a mature economy can positively deliver an energy transition while making the most of its existing skills, resources and capabilities. From global powerhouses to emerging start-ups, our members meeting the UK’s energy needs today will be the same ones that deliver our renewable energy needs tomorrow.
