As part of the plan the UK government has backed new investment into Scotland’s clean energy future, awarding £55.7 million to the Port of Cromarty Firth, securing critical facilities needed for the rapid development of new floating offshore wind farms and ensuring that they are built from the UK.

This investment, granted through the Floating Offshore Wind Manufacturing Investment Scheme (Flowmis), will enable the port to develop large-scale infrastructure for floating turbine construction and deployment.

Floating offshore wind technology utilises turbines mounted on anchored platforms, allowing electricity generation in deep ocean waters. The project, expected to be operational by 2028, anticipates creating 280 to 1,000 skilled jobs in construction, installation, and operational support. The UK government hopes this initial funding will attract further investment, supporting its broader goal of decarbonising the grid by 2030 and stimulating economic growth.

Simultaneously, the UK government has announced plans to end the Energy Profits Levy (windfall tax) on oil and gas profits by 2030. While committed to continued oil and gas extraction from existing fields, the government maintains its stance against new exploration licences. Existing licences may be extended or transferred, and licences for carbon and gas storage will remain unaffected.

Ed Miliband

Energy Secretary Ed Miliband 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.”

Diversifying the North Sea industries while domestic production is managed for decades to come is key to protecting its jobs and investment in the long-term. Today’s consultation explores how to harness the North Sea’s existing infrastructure, natural assets and world-leading expertise to deploy new technologies – like hydrogen, carbon capture and storage, and renewables – to create skilled jobs, meet the UK’s climate obligations, and make the UK a clean energy superpower.  

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, Meanwhile, an up-and-running carbon capture industry alone is expected to add around £5 billion per year of gross value to the UK economy by 2050. 

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 has already taken rapid steps in accelerating clean energy industries – with the biggest ever investment in offshore wind and up to £21.7bn in funding over the next 25 years for carbon capture and storage and hydrogen projects. This comes alongside the launch of GB Energy, headquartered in Aberdeen, and the creation of a National Wealth Fund, both of which will unlock significant investment in clean power projects across the UK and help create thousands of skilled jobs. 

The government has also consulted on revised environmental guidance offshore oil and gas projects and will respond to give certainty to the industry and enable developers to resume applying for consents for already-licensed projects. This follows a Supreme Court ruling last year that requires regulators to consider the impact of burning oil and gas – known as scope 3 emissions – in the Environmental Impact Assessment for new projects.

Tania Kumar, Net Zero Director, CBI said: “The North Sea has long been a cornerstone of the UK’s energy sector and will continue to play a vital role in securing energy independence and transitioning to a low-carbon economy.

“Today’s consultations highlight the government’s commitment to a managed transition. Success hinges on our collaboration with communities, workers, and businesses to develop a practical plan.

“Robust regulation and the pivotal role of the North Sea Transition Authority will be essential. The UK’s net zero economy is growing faster than the rest of the economy – the future is green growth and managing the transition away from fossil fuels to a clean energy future for the North Sea is vital to achieving it.”

Dhara Vyas, Energy UK CEO, said: “Today’s announcement offers a positive step toward a just transition for offshore workers. The North Sea has been an engine of economic growth and energy security for the UK, but it’s critical to ensure pathways are available for offshore workers to transition to the low carbon industries of the future.

“The government has a sent a strong signal about the UK’s clean energy future, and the role the North Sea will continue to play in fostering clean technologies such as offshore wind, hydrogen, and carbon capture and storage. The clean energy mission can help ensure the North Sea’s best days are ahead of it, powering economic growth and enabling the UK to lead the way in the global clean industrial revolution.”

David Whitehouse, chief executive of OEUK, said: “The UK offshore energy industry, including its oil and gas sector, is responsible for thousands of jobs across Scotland and the UK, and today the government has committed to meaningful consultation on the long-term future of our North Sea.

“That is important and welcomed. Energy policy underpins our national security – how we build a clean energy future and leverage our proud heritage matters.

“Today’s consultations, on both the critical role of the North Sea in the energy transition and how the taxation regime will respond to unusually high oil and gas prices, will help to begin to give certainty to investors and create a stable investment environment for years to come. We will continue to work with government and wider stakeholders to ensure a future North Sea which delivers economic growth and supports the communities that rely on this sector and workers across right and the UK.”

Dan McGrail, chief executive of 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.”