The Prime Minister said the major development off the coast of Aberdeen will “boost our energy security, back British workers… and bring down bills”.
The development will be a major boost for Scotland’s North Sea gas industry(Image: ADURA)
A major new gas field in the North Sea will begin to supply Scots homes and businesses within weeks after being given the green light by the UK Government today.
Andy Burnham pledged the Jackdaw development, which lies 150 miles off the coast of Aberdeen, will boost the UK’s energy security at a time of rising global tensions as well as driving down household fuel bills.
Jackdaw is expected to increase domestic gas production by around six per cent at its peak – supporting the UK’s gas supply over its lifespan of up to 11 years.
Douglas Alexander, the Scottish Secretary, described today’s decision as “a win for Aberdeen, a win for Scottish workers and a win for Britain’s energy security”.
The Labour Government blamed recent events in the Middle East for triggering global energy shocks, which have already pushed up bills for families across the country.
And the Prime Minister insisted the decision to give Jackdaw the go-ahead would “protect hundreds of jobs and help keep millions of homes warm this winter”.
Burnham said: “At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.
“We’re committed to moving towards renewable energy and reaching net zero by 2050.
“But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea.
“We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.
“Our approach will ensure we can boost our energy security, back British workers, ringfence future North Sea proceeds to speed up the green transition, hit our ambitious climate targets and – crucially – bring down bills.”
John Healey, the Chancellor, will later announce the establishment of a new Energy Wealth Fund, which will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects and support the green transition.
The UK Government said the project will start with an initial £2 billion injection of funding, with future revenues from the North Sea flowing into the fund over time.
Healey said: “I want Britain’s energy wealth to spark a new wave of clean power to work for the British people.
“Since North Sea gas and oil were discovered decades ago, the benefit of our existing nation’s natural resources have not been turned into the long-term investment our country needs.
“Through our new Energy Wealth Fund, we will invest in the clean energy industries of the future, creating jobs, driving growth and strengthening Britain’s energy security.”
Alexander, the Scottish Secretary, said: “This decision to approve Jackdaw is a win for Aberdeen, a win for Scottish workers and a win for Britain’s energy security.
“The North East has helped power the country for half a century, and will continue to do so for decades to come.
“This will harness the homegrown skills and assets we have in Scotland and right across the UK in a boost for the economy, as we continue to invest in and grow clean energy resources, and work towards the transition.”
Michael Marra, the Scottish Labour leader, said: “This a pragmatic and very welcome decision from the UK Labour government and a strong vote of confidence in the future of Scotland’s world leading energy sector.
“It is the right decision for Scotland’s energy security, our industrial base and the skilled workers who have powered our economy for generations.
“I have been at the forefront of making the argument for Jackdaw, driving the case with colleagues in the UK government and directly with the Prime Minister.”
It comes as the SNP looks set to drop its longstanding policy of opposing new oil and gas developments in the North Sea
The Scottish Government previously released a draft energy strategy in 2023 which set out its “presumption against” new oil and gas fields in the North Sea.
Nationalist ministers have no formal powers over the North Sea but John Swinney’s expected support for Jackdaw will anger the Scottish Greens, a party the minority SNP Government has repeatedly relied on for votes in the past.
Ross Greer, the Greens co-leader, said: “Labour’s decision to approve Jackdaw is climate vandalism. It is a devastating betrayal of our children’s future and it won’t even lower energy bills in the here and now.
“Andy Burnham’s Government had the opportunity to reject the greed of oil and gas companies.
“They could have focused instead on lowering bills and protecting our planet by investing in clean, green renewable energy. Instead, this Labour Prime Minister has caved in to the fossil fuel lobby and continued to devastate our climate.
“Jackdaw will make the UK even more dependent on gas despite its wildly fluctuating prices in the global market. That will do absolutely nothing to lower household energy bills and it is dishonest to pretend that it will.”
In a statement, Stephen Gethins, the SNP Energy Minister, failed to welcome the Jackdaw announcement. He said: “The decision to consent the Jackdaw gas field has obviously taken longer than anticipated given previous UK Government decisions being challenged in the courts. We hope this will provide some stability and certainty after many years of difficulty in the sector thanks to UK Government policy.
“We have been clear that utilising domestic oil and gas resources is preferable to international sources, where importation leads to a bigger carbon footprint. We would expect that this, alongside wider climate compatibility assessment, has been the basis of the UK Government’s decision and look forward to seeing the detail of this.”
Charandeep Singh, Chief Executive of Scottish Chambers of Commerce, said: “This is welcome news and a real moment of confidence for the businesses who have been quietly building towards this point for years. Jackdaw is ready and, with gas set to be flowing into homes up and down the country within weeks, it shows what our energy sector can deliver when the regulatory process is allowed to proceed.”
