Jackdaw gas field approved by UK Government

The Jackdaw gas field in the North Sea has been given the go-ahead by the UK Government.

The controversial project, 150 miles east of Aberdeen and owned by Shell, has been approved despite campaigning by environmental groups and warnings from energy analysts.

It is one of two North Sea developments initially approved by the previous Conservative administration before the courts ruled the full environmental impacts of the fossil fuels drilled should be taken into account.

Labour had promised a ban on new drilling in the North Sea in its 2024 election manifesto, but new Prime Minister Andy Burnham vowed to take a “pragmatic” approach.

On Wednesday morning, his government announced Jackdaw would go ahead.

Burnham said the approval of the Jackdaw gas field will “protect hundreds of jobs and help keep millions of homes warm this winter” but insisted the Government remained “committed to moving towards renewable energy”.

Jackdaw will start supplying gas to homes and businesses from the end of the month, the Government said.

Energy Secretary Miatta Fahnbulleh said: “Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.

“This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear.

“The decision is compatible with our legally binding climate commitments, and we remain resolute in ending new licences for oil and gas and achieving net zero by 2050.”

Information submitted on behalf of the project said that at peak production, Jackdaw is expected to contribute around 6.5% of UK Continental Shelf gas production, which would produce enough energy to heat more than 1.4 million homes.

A decision on Rosebank, the largest untapped oil field in the North Sea, is to take “a bit longer”.

The oil and gas industry, Tories and Reform have been calling for both fields to be given the go-ahead to boost energy security and economic growth, but environmentalists and analysts have been warning they will harm climate action, do nothing to bring down bills, and security is better served with renewables.

Scotland’s First Minister John Swinney has changed his party’s stance on the North Sea developments. His predecessors Nicola Sturgeon and Humza Yousaf both opposed the new drilling projects.

But Swinney has taken a far softer approach telling STV News that Jackdaw and Rosebank had to be assessed on whether they would deliver higher or lower carbon emissions compared with importing oil and gas from abroad.

‘Severe grid strain’

It comes as the UK faces numerous challenges with the energy transition, including balancing supply from intermittent renewable sources, affordability with gas prices frequently setting electricity prices, and growing demand for connecting new sources and users to the network.

In June, the electricity grid operator National Energy System Operator (NESO) faced challenges managing severe grid strain during extreme heat, with high temperatures causing a drop in renewable energy efficiency and demand surging because of factors such as increased air con use.

Answering questions at Energy UK’s conference, Fintan Slye, Neso’s chief executive, said there will be “lessons to be learned” coming out of a review into that period that regulator Ofgem is currently undertaking.

Asked how he thought Neso handled the situation, Mr Slye said: “Through that period, no customers were disconnected (and) frequencies stayed within statutory limits.

“But undoubtedly, it was a really challenging period for the system and right across Europe we saw power systems … under stain.

“I think the control room and teams that were in it did an absolutely superb job managing what was a really difficult situation through the week.”