Wireline Magazine Issue 50 - Spring 2021

CARBON CAPTURE &STORAGE

HYDROGEN

SUPPLY CHAIN TRANSFORMATION

North Sea Transition Deal

SUPPLY DECARBONISATION

PEOPLE &SKILLS

March 2021

OGUK chief executive Deirdre Michie OBE said: “The North Sea Transition Deal is a transformative partnership which will harness the expertise of the UK offshore oil and gas industry to urgently meet the country’s climate ambitions of net zero emissions by 2050. “Itwill unlock billions of pounds of investment and see government and industry work together to deliver a homegrown energy transition, realising innovative low carbon solutions that can be exported globally. “The Deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy. It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”

Key commitments in the Transition Deal include the sector’s target to reduce emissions by 10% by 2025, 25% by 2027, and 50% by 2030. By 2030, the sector will also voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK. The deal will in turn help to unlock up to £16 billion in investment over the next decade in crucial low carbon solutions including CCUS and hydrogen, and support the creation of up to 40,000 new energy jobs in industrial heartlands across the UK. It comes after the sector published Roadmap 2035: A Blueprint for Net Zero, in 2019, and was one of the first industry responses to the government’s climate change commitments. The deal has been agreed between Business and Energy Secretary Kwasi Kwarteng on behalf of the UK Government and OGUK Chief Executive Deirdre Michie on behalf of industry.

North Sea Transition Deal to deliver home- grown transition towards net zero On 24March, the UK government announced that it will deliver a transformational deal in partnership with the UK oil and gas industry to tackle climate change and deliver key aspects of their ten-point plan. The deal is the first of its kind by any G7 country, setting an example of how oil and gas producing countries can move fairly towards a lower carbon future in a way which supports the economy, jobs, and energy communities across the UK. Developed in partnership with OGUK, the North Sea Transition Deal outlines over 50 government and industry actions to accelerate moves towards the government’s target of net zero emissions by 2050.

Learn more about the North Sea Transition Deal on p. 14.

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