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United Kingdom

North Sea Transition Deal

legislation type Executive
Passed in 2021
The stated aim of the North Sea Transition Deal is to maximise the "advantages for the UK's oil and gas sector from the global shift to clean growth". The document provides more detail on actions to achieve the emissions reduction targets set out in the Ten Point Plan and the Energy White Paper. The paper notes that it seeks to balance the need for emissions abatement from the oil and gas sector with the costs of abatement and to mitigate the risk of relocation of production abroad (carbon leakage). it sets an emissions reduction target for the sector of 60Mt reduction in greenhouse gas emissions, including 15Mt through the progressive decarbonisation of UKCS production over the period to 2030.

The deal sets out five key outcomes:
1. Supply decarbonisation - this outcome is focused on reducing operational emissions from the North Sea oil and gas sector to net zero
2. Carbon Capture, Usage & Storage - this outcome is related to government action and investment in CCUS infrastructure, including standards development
3. Hydrogen - to achieve this outcome the government commits to supporting RD&D in the hydrogen sector, including through re-structuring the existing market framework set out in the Gas Act, simplifying the planning process for hydrogen projects, maintaining gas sector infrastructure and establishing a revenue mechanism to stimulate private investment in the sector
4. Supply chain transformation - this outcome aims to establish a net zero supply chain, supported through R&D and other activities
5. People and Skills - this outcome is aimed at facilitating the re-skilling of industry workers. 



Documents

  • By 2025, a Hydrogen Neighbourhood village will be trialing.
    Environment | Target year: 2025 | Base year: 2021
  • By 2030, ¬£14-16Bn to be invested in new technologies, especially CCSU and Hydrogen at scale.
    Energy | Target year: 2030 | Base year: 2021
  • By 2030, to achieve 50% local energy and decomission oil and gas.
    Energy | Target year: 2030 | Base year: 2021
  • By 2030, achieve a 60Mt reduction in greenhouse gas emissions.
    Environment | Target year: 2030 | Base year: 2021
  • By 2030, 50% reduction from 2018 emission levels.
    Environment | Target year: 2030 | Base year: 2021
  • By 2030, four clusters will be formed for carbon capture.
    Environment | Target year: 2030 | Base year: 2021
  • By 2030, UK has the ambition to get to 5GW for low carbon hydrogen production capacity.
    Energy | Target year: 2030 | Base year: 2021
  • By 2025, OGCI to meet 0.25-0.2% methane intensity commitment.
    Environment | Target year: 2025 | Base year: 2021
  • By 2030, ¬£2-3Bn to be invested in carbon storage technology.
    Environment | Target year: 2030 | Base year: 2021
  • By 2030, deliver the ambition for 5GW of low carbon hydrogen production capacity
    Environment | Target year: 2030 | Base year: 2021
  • By 2030, ¬£1Bn will be to support the establishment of carbon capture and storage in four industrial clusters and create up to 6,600 jobs.
    Transport | Target year: 2030 | Base year: 2021
  • By 2030, 8000 new jobs in the hydrogen sector.
    Economy-wide | Target year: 2030 | Base year: 2021
  • By 2024/5, the government to provide ¬£240M for the Net Zero Hydrogen Fund.
    Environment | Target year: 2025 | Base year: 2021
  • By 2023, the HSE to enable up to 20% hydrogen blending on the network.
    Environment | Target year: 2023 | Base year: 2021
  • By 2050, the energy innovation strategy to annually generate ¬£54 billion of business opportunities for the UK.
    Finance | Target year: 2050 | Base year: 2021
  • By 2030, ¬£36Bn mobilised by the private sector for investing in green jobs.
    Economy-wide | Target year: 2030 | Base year: 2019
from the Grantham Research Institute
from the Grantham Research Institute
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