UK Government announces pioneering agreement with industry on energy transition

Today’s announcement of a North Sea Transition Deal between industry and the UK government is ground-breaking. It is the most pioneering upstream energy transition discussion I have seen to date in any country, and a blueprint I believe other markets should study.

The Deal brings together a package of commitments and measures that will facilitate decarbonisation of North Sea production, while building capability and investment in clean technologies like carbon capture and storage (CCS) and hydrogen – all while supporting jobs and supply chain value.

In our more than 100-year history in the UK, Shell has been proud to supply the energy that has supported British lives and powered British prosperity. When we announced our new global strategy last month, we highlighted that the North Sea remains a critical part of our global portfolio. Today’s announcement is a welcome signal of confidence in our sector as well as a clear articulation of the expectations upon us. 

I welcome the UK Government’s acknowledgement that the oil and gas industry has a critical role to play in decarbonising the UK energy system. This includes the development of new technologies like CCS, establishing expertise that can be exported globally and stimulating economic growth. One example is Shell’s involvement in the Acorn Project in North East Scotland, which has the potential to transport and store over five million tonnes of CO2 per year. 

The North Sea Transition Deal is a powerful example of what can be achieved when Government and industry works closely together, with mutual obligations and towards a common goal. This partnership will be critical as we seek to deliver on the goals of the Paris Agreement and Shell is committed to playing our part.