North Sea Transition Deal - Hydrogen Production

Last updated: 13 December 2021

In order to support the oil and gas industry sectors cope with the energy transition, the UK government has vowed to support workers, businesses and the supply chain through this transition by harnessing the industry's existing capabilities, infrastructure and private investment potential to exploit new and emerging technologies such as hydrogen production, Carbon Capture Usage and Storage, offshore wind and decommissioning.   


Extracting oil and gas on the UK Continental Shelf is directly responsible for around 3.5% of the UK’s greenhouse gas emissions. Through the package of measures, the deal is expected to cut pollution by up to 60 million tonnes by 2030 including 15 million tonnes from oil and gas production on the UK Continental Shelf - the equivalent of annual emissions from 90% of the UK’s homes - while supporting up to 40,000 jobs across the supply chain.  


Key commitments in the North Sea Transition Deal include: -joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions and up to £10 billion for hydrogen production.


Glasgow is also to be awarded 9.4 million GBP for a new hydrogen project, at the UK's largest onshore windfarm. The project aims at producing hydrogen for storing energy and providing zero-carbon fuel to accelerate the clean energy transition.

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