The government will support “hundreds” of new licences off the coast of Scotland, while new plans for a “clean” carbon capture industry could support up to 50,000 new roles, according to Downing Street.
The prime minister has announced an expansion of oil and gas drilling in the North Sea amid ongoing rows in his party over the future of its climate commitments.
Number 10 said hundreds of new oil and gas licences will be granted off the coast of Scotland to “boost British energy independence” and “reduce reliance on hostile states”.
The move puts down a marker between the government and Labour, which has proposed a block on all domestic new oil and gas drilling as part of its strategy to achieve zero-carbon electricity by 2030.
Shadow climate change secretary Ed Miliband accused Rishi Sunak of lurching towards “a culture war on climate” to make up for “13 years of failed Tory energy policy”.
But Mr Sunak and his ministers have stressed the need to use North Sea fossil fuel resources, especially since the Russian invasion of Ukraine.
The North Sea Transition Authority (NSTA), which is responsible for regulating the oil, gas and carbon storage industries, is currently running the 33rd offshore oil and gas licensing round, and they expect to award more than 100 new licenses in the autumn.
But such moves have prompted alarm from climate campaigners, with the government already facing opposition to any development of Rosebank, 80 miles northwest of Shetland.
But Mr Sunak and his ministers have stressed the need to use North Sea fossil fuel resources, especially since the Russian invasion of Ukraine.
The North Sea Transition Authority (NSTA), which is responsible for regulating the oil, gas and carbon storage industries, is currently running the 33rd offshore oil and gas licensing round, and they expect to award more than 100 new licenses in the autumn.
But such moves have prompted alarm from climate campaigners, with the government already facing opposition to any development of Rosebank, 80 miles northwest of Shetland.
The head of Oxfam Scotland, Jamie Livingstone, called the new licensing rounds a “short-sighted and selfish decision by the UK government” which “flies in the face of climate science and common sense”.
He added: “The UN has made clear that we must end our global addiction to fossil fuels, so this decision sends a wrecking ball through the UK’s climate commitments.”
The prime minister has also confirmed locations for two new carbon capture usage and storage clusters ahead of a visit to Aberdeenshire today – where he is expected to announce multi-million pound funding for the schemes.
Carbon capture sees polluting fumes collected to either be used elsewhere or stored underground instead of going into the air, and is seen as an increasingly important tool in achieving net zero.
The Acorn carbon capture project in North East Scotland – a joint venture between Shell and other firms – and the Viking project in the Humber will be “vital to driving forward and investing in clean technologies that we need to realise our net zero target”, Downing Street said.
But while ministers predict the move could support up to 50,000 jobs, the target for the two new sites to be up and running isn’t until 2030.
‘We’re choosing to power up Britain’
Ahead of his visit to Scotland, Mr Sunak said: “We have all witnessed how Putin has manipulated and weaponised energy – disrupting supply and stalling growth in countries around the world.
“Now more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses.
“Even when we’ve reached net zero in 2050, a quarter of our energy needs will come from oil and gas.
“But there are those who would rather that it come from hostile states than from the supplies we have here at home.
“We’re choosing to power up Britain from Britain and invest in crucial industries such as carbon capture and storage, rather than depend on more carbon-intensive gas imports from overseas – which will support thousands of skilled jobs, unlock further opportunities for green technologies and grow the economy.”
SNP Westminster leader Stephen Flynn said it was right to be “conscious of energy security” and keeping the large oil and gas workforce in Scotland employed, calling it a “silly position” to end all drilling.
But speaking to Sky News, he did not give his full support to the new licenses, saying Tory plans to “take every single drop” from the North Sea was “a little bit morally bankrupt”.
He added: “We need to be conscious of the fact that every single drop of oil or indeed a molecule of gas that we take out of the North Sea will have a concurrent impact on climate change.”
Mr Flynn called for “robust climate compatibility checkpoints” to be put in place for any new licenses.
Meanwhile, Labour’s Mr Miliband questioned whether the prime minister was the right person to make the decisions over future energy security.
“Every family and business is paying the price, in higher energy bills,” he said. “It is absurd that having left this country so exposed, the Conservative Party is asking the public to believe they can fix it.
“And it’s telling that while Labour focuses on lower bills and good jobs, Rishi Sunak lurches desperately towards a culture war on climate to appease his split party, losing track of what he believes from day to day, depending on which faction he’s met with.
“It’s no way to govern and it’s costing working people.”
A new green dividing line in politics?
The move comes as both main parties continue to argue over their commitment to key net zero policies and environmental promises.
The Conservatives’ narrow victory in the Uxbridge and South Ruislip by-election opened a can of worms within Labour over London Mayor Sadiq Khan’s plan to expand the Ultra Low Emission Zone (ULEZ) to outer boroughs – something Sir Keir Starmer blamed for the loss.
The Labour leader and Mr Khan are continuing to hold discussions over the extension, with Sir Keir calling on his colleague to “reflect” on the impact on voters.
But Mr Khan has stood by the decision on the basis it will improve air quality for five million people in London.
Meanwhile, MPs on the right of the Conservative Party are appealing to the PM to rethink the government’s net zero commitments in light of the win, with calls for delays to a number of targets – including putting back the ban on the sale of petrol and diesel cars from 2030 to 2035.
Mr Sunak insisted on Sunday the 2030 deadline would remain, but did announce plans for a review of low traffic neighbourhoods (LTNs), saying he was on the side of drivers.
Downing Street has confirmed ministers are scrutinising existing pledges “in light of some of the cost of living challenges”, as the prime minister promised a “proportionate and pragmatic” approach to net zero.
The prime minister is also set to meet industry leaders and workers while in Scotland.
The government pledged that, along with energy authorities, it would “go further than before in announcing continued decisive action to boost the capability of the North Sea industry to transition towards net zero, strengthen the foundations of the UK’s future energy mix and create the next generation of highly skilled green jobs”.
Grant Shapps, the energy security secretary, is also expected to meet figures from the oil and gas, renewable and nuclear industries over the coming week as the Conservatives focus their campaign on the topic.
Mr Shapps said: “In the wake of Putin’s barbaric invasion of Ukraine, our energy security is more important than ever.
“The North Sea is at the heart of our plan to power up Britain from Britain so that tyrants like Putin can never again use energy as a weapon to blackmail us.
“Today’s commitment to power ahead with new oil and gas licences will drive forward our energy independence and our economy for generations.”