MPs have launched a probe into GB Energy and how its creation will impact on Scotland’s energy industry.
The Scottish Affairs Committee has launched the inquiry into the publicly-owned energy company – due to be headquartered in Aberdeen – as part of exploring the net-zero transition in Scotland and how the UK Government’s net-zero ambitions will impact on Scotland.
The UK has a statutory target of reaching net-zero greenhouse gas emissions by 2050, and the UK Government has ambitions to make the UK a “clean-energy superpower” by 2030, with the committee stressing GB Energy will be “central” to this.
We reported earlier this month how GB Energy will receive just £100 million in funding for renewables projects in the first two years despite the UK Government’s pledge to invest £8 billion by the middle of 2029.
Meanwhile, GB Energy will not actually have its own exclusive headquarters in Aberdeen, as it will be based in a building which is shared with oil companies.
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Earlier this month, GB Energy chair Juergen Maier told MPs on the Energy Security and Net Zero Committee that he expected between 200 and 300 jobs to be created in Aberdeen – less than one-third of what Maier had claimed just last month.
The committee will consider what is required to achieve a just transition from North Sea oil and gas to clean power, which can help the UK meet its climate goals whilst also ensuring opportunities for economic growth in Scotland.
MPs will examine what support is needed to transition oil and gas workers to clean energy, how clean energy supply chains can be developed in Scotland and what measures would help Scotland’s renewables sector to achieve its potential.
The inquiry's launch follows the committee’s visit to the north and east of Scotland this week, including the Grangemouth oil refinery which is scheduled to be closed and converted into a fuel import terminal – resulting in the loss of approximately 400 jobs.
As part of their visit, the committee met with Forth Valley College and trade union Unite to discuss the future of the site and what steps are being taken to support workers impacted by the closure.
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In Aberdeenshire, the committee also visited the St Fergus gas terminal to learn about its importance for UK energy supply, and Project Acorn’s work to decarbonise Scotland’s industry.
The chair of the Scottish Affairs Committee, Glasgow West's Labour MP Patricia Ferguson, said: “The committee’s visit to Grangemouth reinforced how important it is to make sure Scotland gets the transition to net zero right.
“The UK is committed to the net-zero target, and Scotland has the resources and potential to drive and deliver this transformation, but we want to hear more about how this transition should be managed so that people are not left behind.
“Given the huge role played by oil and gas in Scotland’s economy and employment, we will examine how the UK Government’s ambitions for clean energy will impact on Scotland.
“As part of this inquiry, we will closely scrutinise GB Energy, which has been championed as a way to help make Britain a clean-energy superpower.
“As GB Energy proceeds to establish its headquarters in Aberdeen and offices in Edinburgh and Glasgow, we will be asking how the new company can operate most effectively to support employment and growth in Scotland.”
Some of the key questions forming part of the inquiry are:
- Are Scotland’s energy industry and associated supply chains well-placed to transition to clean energy generation, or is more support needed?
- What actions should the UK and Scottish governments take to ensure the necessary generation and transmission infrastructure to support the development of Scotland’s renewables sector?
- How can GB Energy most effectively support employment, economic growth and the development of clean energy supply chains in Scotland?
- How should GB Energy work with the Scottish Government and other Scottish bodies?
- What does a just transition look like for workers and communities across Scotland’s highland and island communities, and what role might community energy play in this?
- Can the UK learn lessons from international examples about how to effectively manage Scotland’s energy sector transition?
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