Oil and Gas UK (OGUK) is “developing a detailed action plan” for North Sea emissions reduction, the representative body’s top boss has revealed.
Chief executive Deirdre Michie told politicians, policy makers and campaign groups in Edinburgh today that OGUK was currently setting targets and would soon publish the plan.
Ms Michie also said the proposals would support UK’s carbon capture usage and storage (CCUS) sector.
She added that OGUK is also “looking to work with governments and regulators” to progress five CCUS projects across the UK, one of which is the North East’s £224m Acorn project.
She said: “Reducing emissions from 14 million tonnes – currently three percent of the UK’s total greenhouse gas emissions – to 0.5mt – in line with the Climate Change Committee outlook,
“It will require significant investment, new technology and close working with the renewables sector in Scotland and across the UK
“I’m pleased to announce that we are developing targets for emissions reduction, and we will soon publish a detailed action plan in support of this — this is an industry in action.”
Ms Michie also further outlined OGUK’s proposals for CCUS and the hydrogen sector that should be included in the action plans.
She said: We are putting forward our skills, capabilities, assets and knowledge, and working with governments and regulators to clarify policies and regulations on CCUS and hydrogen, including improving the understanding of what is required to re-purpose existing oil and gas assets for use in the low carbon world.
“The CCS charter signed between the Scottish Government and industry demonstrates our commitment.
“The developing hydrogen economy could also bring far-reaching benefits across Scotland,
“For example, in Orkney, where a consortium led by the OGTC alongside universities and oil companies are looking to create a test centre at Flotta oil terminal for trialling these different types of technologies for use on offshore platforms.”
Julia Derrick, oil and gas partner at law firm Ashurst, said: “This is a very timely response from OGUK, given that only two weeks ago the Oil and Gas Authority announced its intention to review the MER UK strategy to formally incorporate the energy transition within the key principles of MER UK.
“A commitment to closer links with the renewables industry is good news for both the oil and gas industry and renewables. However, it is clear that some components of OGUK’s action plan are easier to achieve than others – it is significant to note that OGUK has reiterated the need for the Government to set out a clear roadmap for CCS and hydrogen in the UK, as these technologies are also key to allowing the oil and gas industry achieve its net zero carbon target.”