John Swinney has called on the UK Government to ring-fence a new fund derived from North Sea revenues to support the renewables transition in the north-east of Scotland.
In a letter to Prime Minister Andy Burnham, the Scottish First Minister said he supports the energy wealth fund, which was announced alongside the approval of the Jackdaw gas field near Aberdeen. He pushed for the cash – which has opened with £2 billion of UK Government funding – to be focused in and around the city, considered the energy capital of Europe.
Prioritising offshore renewables
“My clear view is that, given the distribution of North Sea oil and gas resources, any such fund should be prioritised for offshore renewable opportunities and be ring-fenced to be focused on the north-east of Scotland,” Mr Swinney wrote.
Speaking to the Press Association from a trade mission in India, the First Minister added: “My simple point is that there is an energy transition to be undertaken in the north-east of Scotland as well as in other parts of the country, and we’ve got to make sure the resources are able to be supported to manage and to assist that transition.”
Jackdaw approval ends speculation
Wednesday’s decision brought to an end months of speculation about the Jackdaw development, which is based 150 miles off the coast of Aberdeen. In a post on X during his visit to India, Mr Swinney said recent UK Government policy had led to “many years of difficulty” for the energy sector in Scotland.
The Scottish Government’s stance has shifted in recent years, from Nicola Sturgeon’s presumption against new oil and gas to a softer approach under Mr Swinney. The government has still not confirmed its move away from opposing oil and gas by publishing a finalised energy strategy, with reports this week suggesting it could be late 2027 before the document is released.
Industry and political reactions
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.” He added that Jackdaw is “99.9% complete” and that gas will be flowing into homes “within weeks”.
Scottish Conservative leader Russell Findlay called the decision “a victory for Scotland’s oil and gas workers” and urged Mr Burnham to give Rosebank the green light. Scottish Labour leader Michael Marra said it was a “strong vote of confidence” in Scotland’s energy sector, while Reform UK Scotland MSP Duncan Massey said “sanity has finally prevailed”.
