The funding will majorly focus on the north-east of the country. Credit: drpepperscott230 from Pixabay.

The Government of Scotland has announced a £62m ($78m) ‘Energy Transition Fund’ designed to help the Scottish energy industry recover from the impacts of the Covid-19 crisis and oil price crash.

The Energy Transition Fund will be utilised over the next five years to assist the companies to further diversify the businesses and attract private sector investment.

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The funding will mainly focus on the north-east of the country.

Scotland’s economic secretary Fiona Hyslop said: “This package of investment for the North East will support our energy sector as it recovers from the impact of Covid-19 and will help us make significant progress as we move towards net zero by 2045.

“Aberdeen is recognised globally as a centre of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition.

“It is vital we move quickly to seize the opportunity to take forward a green, low-carbon recovery and support the workforce as the energy sector diversifies. Now is an opportune time to re-imagine the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”

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Projects that are under consideration for funding include an underwater hub in Aberdeen to support the growth of the subsea and underwater sector, an energy transition zone business park, and a range of hydrogen projects.

OGUK chief executive Deirdre Michie said: “The support from the Scottish Government today is good news for jobs, supply chain companies and energy communities.

“This significant funding recognises the essential role of Scotland’s offshore oil and gas industry in realising a net zero Scotland by 2045.”