The Energy Secretary has agreed that the regulator can grant consent for gas to be produced at the licensed Jackdaw field. The project is set to begin supplying gas to British homes and businesses from as early as the end of this month, aiming to heat millions of homes and protect hundreds of jobs.
A new Energy Wealth Fund will be established by the Chancellor with an initial £2 billion downpayment to reinvest oil and gas revenues into the climate transition. Jackdaw's development is expected to increase domestic gas production by around 6% at its peak, supporting the UK’s gas supply for up to 11 years, enhancing energy security, protecting hundreds of jobs, and adding an estimated £2.9 billion to the UK economy.
In response to global energy shocks and rising bills, the government views homegrown energy as a source of national strength. The Energy Wealth Fund will utilise tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects. This fund, with its initial £2 billion injection, aims to unlock investment, support future industries, and create skilled jobs across Scotland and the UK.
The Energy Secretary assessed that the Jackdaw project will not prevent the UK from meeting its legally binding carbon emissions limits and achieving net-zero by 2050. The government remains committed to the green transition, but acknowledges the continued need for oil and gas for decades to come. This decision aligns with the manifesto commitment not to issue new exploration licences while managing existing fields.
Following the Supreme Court’s ruling on the Finch case in 2024, North Sea operators must now consider the impact of burning extracted oil and gas in environmental impact assessments. Energy Secretary Miatta Fahnbulleh stated that consent has been granted for Jackdaw, which will begin supplying gas this winter, supporting energy security and minimising the use of higher emission imported fuels.
Prime Minister Andy Burnham welcomed the decision, highlighting its role in protecting jobs and keeping homes warm. He emphasised a pragmatic approach to North Sea resources while investing in renewables and establishing the Energy Wealth Fund to reduce energy bills long-term.
Chancellor of the Exchequer John Healey announced that the Energy Wealth Fund will invest in clean energy industries, creating jobs and strengthening Britain’s energy security. Secretary of State for Scotland Douglas Alexander called the approval a 'win for Aberdeen, a win for Scottish workers and a win for Britain’s energy security'.
Stuart Payne, Chief Executive of the North Sea Transition Authority (NSTA), confirmed consent for the Jackdaw Field development, noting it will support UK energy security, generate tax revenues, and safeguard supply chain jobs. The NSTA also highlighted that the project's emissions intensity is well below the UK average.
The government is also consulting on new guidance for decommissioning complex infrastructure, with a formal request for Shell to submit its Brent decommissioning programme. The UK's decommissioning sector is projected to support up to 25,000 skilled jobs and attract up to £25.6 billion in investment over the next decade.
