John Swinney has urged Andy Burnham 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 the Prime Minister, the Scottish First Minister said he supports the energy wealth fund, which was announced alongside the approval of the Jackdaw gas field near Aberdeen.
But he pushed for the cash – which has opened with £2 billion of UK Government funding – to be focused in and around the city, which is considered the energy capital of Europe.
“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,” he 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.
“As I’ve indicated on a number of occasions before, there has been significant economic disruption and harm caused by the accelerated decline in oil and gas, without the commensurate increase in renewable activity, and I want to make sure that we see that significant increase in renewable activity that delivers sustainable energy and contributes to our efforts to tackle climate change in our society.”
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 on Wednesday 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.
But the stance of the Scottish Government in recent years has shifted, from Nicola Sturgeon’s presumption against new oil and gas to a softer approach under Mr Swinney.
The Scottish 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.
Mr Swinney again declined to give a timeline for the strategy on Wednesday, telling PA it would be published “in due course”.
He said: “I hope today’s announcement on Jackdaw will provide some certainty for the north-east after many years of difficulty thanks to UK Government policy.
“It must also kickstart a renewed drive to deliver our long-standing clean energy ambitions.
“Climate compatibility tests must have formed the basis of the UK Government’s decision, alongside a recognition that carbon emissions from this field would have been lower than imports.”
Groups representing the offshore industry have long called for the UK Government to approve the development, stressing the economic and energy security benefits.
However, environmental groups say there is no case for new drilling if climate commitments are to be met.
Industry groups have stressed the economic benefits (Andrew Milligan/PA)
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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.
“Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks.
“This is a direct, tangible boost to the UK’s energy security at a time when it matters most.
“Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas.”
He added: “But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the north east of Scotland.
“Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.”
The Scottish Tory leader welcomed the decision (Jacob King/PA)
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Scottish Conservative leader Russell Findlay said the Jackdaw decision was “a victory for Scotland’s oil and gas workers”.
He added: “Andy Burnham must now stop dithering and give Rosebank the green light without any further delay.
“Anything less would risk our energy security, harm investment, and be a kick in the teeth for families whose livelihoods depend on it.”
Jack Middleton, SNP MSP for Aberdeen Central, said: “Approving Jackdaw is the right decision, but fundamental questions remain unanswered.
“Andy Burnham’s silence on Rosebank is deafening, and there is no assurance that the establishment of a North Sea wealth fund will benefit Scottish industry alone.
“Labour has kept the workforce waiting while it stalled the Jackdaw decision for its own political convenience.
“Now workers are being dragged through the same uncertainty again with Rosebank.”
The Scottish Tory leader welcomed the decision (Jacob King/PA)
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Scottish Labour leader Michael Marra said the decision to approve Jackdaw was a “strong vote of confidence in the future of Scotland’s world-leading energy sector”.
He said: “It is the right decision for Scotland’s energy security, our industrial base and the skilled workers who have powered our economy for generations.”
Mr Marra said Jackdaw was a “key development in Scotland’s reindustrialisation”, and added: “This is about putting industry and pragmatism before narrow ideology – the next step for Scotland should be new nuclear and renewable projects built by Scottish workers.
“That will require the Scottish and UK governments to work together, and I urge them to do so.”
Reform UK Scotland MSP Duncan Massey said “sanity has finally prevailed”, adding: “It is plain common sense to harness our own resources rather than remain dependent on imports.
“One field, however, is the absolute bare minimum after successive governments and the SNP’s ideological presumption against new oil and gas has inflicted serious harm on the sector.
“The Government has confirmed that it will continue to block new exploration and licences and remains silent on the bigger prize of Rosebank.
“But the same case applies across the entire North Sea: skilled jobs, a secure supply chain, investment and tax receipts that Scotland and the UK desperately need.”