MP puts over case for north-east investment during energy debate
MP Seamus Logan has put a strong case to the new UK Government for investment in the north-east during a House of Commons debate on energy.
The Aberdeenshire North and Moray East MP called for the headquarters of the planned GB Energy company to be located in the north-east; pressed the need for investment in the Acorn carbon capture scheme at St Fergus; urged the new Labour Government to commit to the just transition, utilising the skills-base available locally; and said that oil and gas will be in the energy mix for many years to come.
Speaking during the debate, Mr Logan said: “The journey to net zero is well under way in Scotland, with estimates suggesting that the renewables sector already supports around 42,000 jobs.
“The UK, though, is behind schedule when it comes to investing in the infrastructure, including the grid infrastructure, that those projects will require.
“The unrealistic pricing of contracts for difference has held back the development of offshore wind.
“The new Government need to address that issue with the same urgency with which they are moving on other matters.
“The north-east of Scotland has been the European capital of oil and gas for many decades. Now we have the opportunity to be the net zero capital.
“We have enormous potential to capitalise on offshore wind generation and the development of green hydrogen.
“These are time-limited opportunities, especially as we have ambitions to develop lucrative supply chains, as well as technologies and manufacturing that have significant export potential. In the longer term, that would be the prize for our economic future.
“I want to impress on Ministers today the case for bringing the HQ of GB Energy to the north-east.
“Just look at a map: the bulk of offshore renewables production will be within a 100-mile radius of Aberdeen.
“The ports that will be essential to servicing the sector, most notably Peterhead and Fraserburgh in my constituency, are on the east coast, close to the Moray Firth.
“There are also important potential roles for smaller ports. We already have a workforce with relevant skills and unrivalled experience.
“We also have the most to lose; according to research published last year by Robert Gordon University, around one in five jobs across north-east Scotland is in the oil and gas sector.
“I do not want to see a repeat of what the Thatcher Government did in mining and steelmaking communities across Scotland and elsewhere.
“Perhaps as much as 80 per cent of skills in oil and gas are crossover skills. We must support that crossover.
“Successive UK Governments have used the North Sea as a cash cow.
“Some £10.6 billion flowed into the Treasury coffers in 2022-23, but there has not been a great deal to show for it in Aberdeen city or Aberdeenshire, in terms of infrastructure or investment in that crucial transition. I hope that can change going forward.”
Mr Logan went on to highlight that oil and gas will continue to continue to be part of our energy mix for some time.
He added: “As we debate the need to address climate change, improve energy security and deliver a fairer deal for consumers, it is important to acknowledge the reality: we will continue to need oil and gas for some time to come.
“Many of us are still using gas to heat our home. Fuel poverty is very real.
“High standing charges and a cold climate is a brutal combination that pushes thousands upon thousands of households into energy poverty.
“Most of us still use cars that run on petrol or diesel. In areas like mine, where distances are greater, public transport is more limited.
“Colder winter temperatures mean electric vehicles work less well and the use of traditional vehicles is accentuated.
“Our reliance on fossil fuels is falling, but it is not about to disappear. Oil and gas will continue to be part of our energy mix for some time, which is why it is important that ongoing production is in line with climate compatibility criteria and is managed in a way that does not lead to a premature winding down of production in the North sea.
“However, the current fiscal regime for North Sea production has created a very real and present risk. It has the potential to cost thousands of jobs and saddle the Treasury with cumulative decommissioning costs.
“I will make one final point, on carbon capture and storage. We need to press on with projects such as the Acorn project at St Fergus precisely because they are cutting edge and have tremendous potential to create new technology, knowledge and expertise.
“We have a globally competitive subsea supply chain in the north-east of Scotland. We excel in developing solutions to technical challenges.
“We see challenges as opportunities, and we seek to be leaders in innovative new technologies.
“There is the potential to deliver fair energy prices for consumers, improve energy security and help us to meet our international climate obligations.
“The north-east of Scotland and communities in my constituency in particular will be at the centre of the changes ahead.
“I urge Ministers to make good on their promises and deliver a managed and just transition for those workers and communities on the frontline.”
