Why GB Energy must recognise we need oil and gas as well as renewables

The advent of GB Energy, the government’s new publicly owned energy investment accelerator, can be a real opportunity for Scotland to build on its strengths as a provider of UK energy.

The decision to base it in Aberdeen, with satellites in Edinburgh and Glasgow, is a welcome statement that the government recognises the path to a successful energy transition for Scotland and the wider UK is to leverage our existing industrial strengths.

Where GB Energy is located is important, but what really matters is what it does to work in partnership to unlock homegrown energy at pace. The organisation’s priorities are to co-invest in new technologies like floating wind, scale and accelerate development of existing technologies to meet clean power timelines, and scale up municipal and community power projects.

Private sector funding is key

We are so lucky in this country that we have an offshore energy sector of brilliant, skilled people plus world-class supply chain companies and the natural resources of our seas. We must make the most of this opportunity.

GB Energy will have an important role in unlocking investment in new opportunities. But it has the chance to play a bigger role, helping industry to accelerate project timelines, supporting our supply chain companies and ensuring jobs and benefits are delivered in communities across Scotland and the UK. Partnership between governments, industry and our workforce must be at the organisation’s heart.

Keir Starmer, seen in the control room at the St Fergus Gas Terminal last year, should adopt a pragmatic policy that accelerates the renewable sector's growth while supporting investment in homegrown oil and gas (Picture: Jeff J Mitchell) | Getty Images

Public sector investment has an important role to play, but the lion’s share of the funding will come from the private sector. GB Energy must work to ensure the UK is the global destination for energy investment.

Avoiding past mistakes

We’re told this organisation will create 1,000 new jobs. It must be a catalyst for many thousands more – a seamless transition to retain our talent, unlocking opportunities that would otherwise not happen, investing in technology and future infrastructure, and accelerating projects.

Recently I gave evidence to a Commons committee scrutinising the GB Energy Bill, which is a statement of intent. Its success depends on collaboration and clarity.

GB Energy is one part of the UK’s wider industrial strategy. It’s right there is a focus on accelerating renewable energy but there must also be a recognition that oil and gas continue to play a critical role in supporting the country's energy needs.

To deliver a homegrown energy future, both the destination and the journey are important. On this journey, the goal is de-carbonisation, not de-industrialisation. Past mistakes must not be repeated.

Lifeblood of offshore energy sector

The Climate Change Committee estimates 50 per cent of our energy is still going to come from oil and gas by 2050. Today we produce about half of what we need. It surely makes sense to prioritise domestic production, rather than relying on more imports.

OEUK members across the supply chain create revenue from oil and gas activity to invest in wind, hydrogen, carbon capture and the wider energy transition. These companies are the lifeblood of the offshore energy sector, employing tens of thousands of people.

Our path must be a pragmatic policy that accelerates the build-out of renewable energy, while supporting the investment in homegrown oil and gas that’s still needed on the journey. If we get this right, we’ll support jobs across the country and deliver the growth the country needs. Important times.

David Whitehouse is chief executive of Offshore Energies UK