PORT CEO ISSUES BUDGET WARNING TO GOVERNMENT ON ENERGY TRANSITION

PPA chief executive Graeme Reid said: “Despite our successful 400-year legacy, I believe the best is yet to come for Peterhead Port.

“From a personal perspective, I’ve never been more excited about the prospects that we have - fishing, wind, hydrogen, CCUS, decommissioning and ongoing oil and gas production logistics support.”

However, Mr Reid sounded a warning with the Budget looming and the prospect of further punitive taxes and reduced investment allowances for energy companies.

Guests at the event at the House of Commons hosted by the Port included MPs from all major political parties - and Energy Minister Michael Shanks - as well as representatives from wind, hydrogen, CCUS, and a plethora of other energy transition businesses and associated service companies.

“In order to be an enabler for all these sectors we need investment support such that we can transition without there being a gap in time which will result in a loss of assets, vessels and expertise that we require to develop new industries."

He said the port was undertaking a 10-year masterplan with infrastructure developments and enhancements at the heart of it.

“Just as it did in the early 1970s with the arrival of North Sea oil and gas, the Port is adapting its facilities quickly to support the energy transition.”

Mr Reid also called for government backing for a proposed Investment Zone for the area - including the port - which would help attract significant private investment to the region, creating jobs, opportunities and support for the wider energy transition.

Storegga co-founder and executive vice president, Steve Murphy, welcomed how the Government last week pledged £21.7bn to support two massive CCUS projects in England. But Mr Murphy also warned the government about the risk from continued delay to decisions on other energy transition infrastructure – including the Acorn CCUS project in North East Scotland: “Storegga is a British company, working with British partners to drive real change in Britain. But to do so we need policy clarity and consistency from Government – without which we’ll find ourselves at a disadvantage to other countries and regions where there is a clearer path for investors to delivery – and returns”.

Aberdeenshire North and Moray East MP Seamus Logan said: “I believe it is our job as politicians, as Scottish politicians, whether in Government or opposition to ensure that we encourage investment, that we focus our expenditure on the infrastructure of the future and that we provide clearly articulated support in the public realm so that bodies like Peterhead Port Authority can deliver on their vision and ensure the continuing economic growth and enhanced prosperity both locally and to the wider Scottish and UK economies.”

The guests were also provided with an update on the ongoing £4.3billion project to take offshore wind power from Scotland to the East coast of England, known as EGL2, which includes a 436km stretch of cabling buried under the North Sea.

The project, highlighted by former oil and gas engineer Tom Moore, is expected to come on stream in 2029 and take energy from where its produced offshore Scotland and provide it to demand centres in England - and vice versa if needed.