Westminster has been warned that failing to secure the innovation hub’s future would lead to a backlash.
Created in 2017 to support the North Sea energy sector’s transition away from fossil fuels, the facility was backed with £180 million in UK and Scottish government funding.
Resources are set to run out in 2027, at which point it is currently unclear where money will come from to keep the hub open. Local politicians are now lobbying Downing Street to commit more financing to safeguard the centre.
Writing an open letter to Chancellor Rachel Reeves, MPs Andrew Bowie and Stephen Flynn said the facility plays a ‘key role in ensuring not only a just transition but a transition with hope and opportunity for the current workforce.’
‘Labour are consistently saying Aberdeen and the north-east are vital to the future of energy,’ the letter read. ‘To pull support in 2027 for NZTC will be a dereliction of duty for government. A betrayal.’
Aberdeen’s GVA has benefited by £10 billion since the centre opened, commercialising 59 new technologies and accelerated 117 start-ups in net zero and associated technologies. However, Britain’s energy capital now faces a more uncertain economic future.
Labour has already been criticised over the impact of windfall tax on oil and gas firms. Harbour Energy recently became the latest fossil fuel firm to announce job losses in the area. The company has blamed the Energy Profits Levy for plans to cut staffing by around 250 roles. Prime Minister Keir Starmer’s government increased the corporate tariff last year and extended its timeline to 2030.
Image: Osman Rana / Unsplash
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