Scottish government announces £4m funding for North Sea infrastructure decommissioning

The Scottish government has announced £4m funding support to help maximise the economic benefit to Scotland from the decommissioning of North Sea infrastructure. 

The money from the Decommissioning Challenge Fund is in addition to the £10m committed in the first three rounds of the fund in a number of locations including Shetland, Kishorn, Aberdeen, Dundee, Leith and Hunterston. It will provide support for projects to enhance the decommissioning market and the supply chain in Scotland.

Ministers say this latest round of funding will deliver capital and resource funding for projects in financial year 2019/20. Previous funded projects have been designed to increase Scottish decommissioning capabilities in the short-term, and include amongst them port infrastructure upgrades, and innovative technological development spanning improvement for plugging and abandonment to onshore decommissioning and waste handling. 

Paul Wheelhouse, Scotland’s energy minister, said: "Industry reports tell us that £15.3bn is forecast to be spent in the UKCS between 2018-2027, with further market demand beyond this. This represents a great opportunity for Scotland’s supply chain and I am delighted to announce this £4m fund.

“Scotland’s energy strategy highlights the significant economic opportunities that decommissioning offers, and commits to enhancing our skills and capacity. As the industry continues to build on established capabilities and internationally recognised expertise, such as in well plugging and abandonment techniques, the fund plays a crucial role in supporting the future development of this growing industry.

“Decommissioning North Sea infrastructure will help Scotland’s supply chain gain an even higher share of North Sea projects and capitalise global market opportunities by exporting knowledge and experience. This fund will support innovation in the supply chain, further cost reduction and improve the recognised skills of the Scottish workforce.”

The Decommissioning Challenge Fund is open to expressions of interest until  2 September 2019.


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