The Net Zero Technology Centre faces uncertain future without continued funding.
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The UK Labour government is under increasing pressure to ensure the sustainability of a vital innovation hub located in Aberdeen, known as the Net Zero Technology Centre (NZTC). Established in 2017, the NZTC was designed to bolster the North Sea energy sector and facilitate the transition towards net zero emissions.
With funding amounting to £180 million from both the UK and Scottish governments, this initiative has played a crucial role in supporting the region’s energy industry.
Importance of the Net Zero Technology Centre
As the deadline for the current funding approaches in March 2027, North-east MPs Andrew Bowie and Stephen Flynn have urged the Treasury to extend its financial commitment.
In a letter addressed to Chancellor Rachel Reeves, they emphasized the centre’s pivotal role in fostering a just transition for the workforce, highlighting its significance in creating opportunities and hope for those affected by the energy sector’s evolution.
Mr. Bowie articulated the centre’s impact on job viability in the region, stating that the NZTC has effectively prolonged the sustainability of tens of thousands of jobs in the North-east. He criticized the potential withdrawal of support, labeling it a “dereliction of duty” and a “betrayal” of the local workforce. The centre has already contributed an impressive £10 billion to the Gross Value Added (GVA) and facilitated £220 million in match funding, which has led to the commercialization of 59 new technologies and the acceleration of 117 start-ups.
Political backlash and economic implications
The Labour government has faced mounting criticism recently, particularly regarding its windfall tax on oil and gas companies. This backlash intensified following Harbour Energy’s announcement of 250 job cuts in Aberdeen, which the company attributed to the increased Energy Profits Levy imposed by the UK Government. This situation has prompted calls for Prime Minister Sir Keir Starmer to visit Aberdeen and address the “damaging impact” of his government’s policies on the local economy.
In response to these concerns, Climate Minister Kerry McCarthy stated that both the UK and Scottish governments are actively reviewing the latest business case for the NZTC. She assured that the government is exploring the best ways to support net zero research and innovation, aiming to maximize the impact of public investment. A decision regarding the future involvement of the government with the NZTC is expected to be made in due course.
Commitment from the Scottish Government
The Scottish Government has expressed its appreciation for the work undertaken by the NZTC since its inception. A spokesperson confirmed their ongoing support as part of a £90 million commitment through the Aberdeen City Region Deal. They are currently reviewing the latest business case information provided alongside the UK Government’s assessment.
In a recent statement, a UK Government representative reiterated Scotland’s central role in the clean energy mission. They announced plans to establish an Energy Campus in Aberdeen, aimed at building local skills and developing government policies that align closely with community needs. This initiative underscores the commitment to backing net zero research and innovation across Scotland and the UK.
