Latest news with #JustTransitionFund
The National
29-07-2025
- Business
- The National
A true just transition will save jobs and the planet
We have families here who have been working in oil and gas for generations. We have communities whose very fabric was built around that industry. We're in the middle of a major shift. The decline in oil and gas production isn't something in the distant future, it's already happening. And with it, the jobs are going – some reports have said we're facing Grangemouth-scale losses on a weekly basis across the North-east. I want to be really clear that I truly believe the Scottish Government is absolutely committed to a just transition. And I support that – I welcome it. And it's not just words, it has been backed by action. READ MORE: Sandie Peggie 'wanted to post bacon through mosque letterbox', tribunal told We've seen investment coming into the north-east through the Just Transition Fund, and recently we saw the launch of a new oil and gas transition training programme tailored specifically to our region. That's vital, because we're not talking about abstract change, we're talking about retraining real people for real jobs in sectors like renewables, offshore wind, hydrogen and carbon capture. I recently visited the St Fergus gas terminal in my constituency, a place that is central to the UK's energy supply, processing about a third of the gas the UK uses. It was eye-opening, and it gave me a deeper appreciation of just how skilled the workforce is, and how deeply embedded the oil and gas sector is in our local economy. And that's why I think we need to be really honest about what the transition means in practice. Because it's not just about switching energy sources, it's also about making sure that we don't leave entire communities behind as we move forward. Of course we must protect our climate and meet our climate obligations. I have grandchildren, and want to make sure the world we leave behind for them is sustainable. But we also must be honest about how we do that in a way that doesn't destroy jobs and decimate local economies in the process. A return to Thatcher and the treatment of the coal mines and their workers must be avoided at all costs. That's why the word 'just' really matters. We must make sure people whose work powered our country for decades aren't tossed aside now that we're changing direction. What I hear a lot from people is that if Scotland and the UK are still consuming oil and gas (which we are), and if we're not drilling for it ourselves here, then where is it coming from? Are we just importing it from elsewhere? And if so, are we not just offshoring our carbon footprint? It's a fair question. And I think it's one that we need to answer properly. Because when we talk about reducing emissions, are we measuring the carbon we produce in Scotland, or the carbon we use? Those are very different things. It would feel like smoke and mirrors if we claimed a reduction in emissions simply because we're not drilling here, while still burning the same amount of fuel that has been shipped in from abroad. The public deserves transparency on that. We can't pretend we're doing better for the planet if all we're doing is moving the problem offshore. From what I understand, most UK emissions accounting is based on what we produce territorially. But that doesn't reflect what we consume. And when you look at that difference, it raises big questions about how honest we're being with ourselves. This leads me to another question that I want to put to the public. If we are assuming we won't license new oil fields, if that is the direction of travel, then what are the consequences? Not just for emissions, but for jobs, for our energy security, and for local economies like ours? If we're not producing enough of our own energy, we're leaving ourselves vulnerable to the whims of global markets and political figures such as Donald Trump or Vladimir Putin. We need to add that into the equation when we're talking about what's realistic, responsible, and safe for Scotland's future. I'm not here to say 'drill baby drill', absolutely not. I firmly believe in our climate responsibilities. But I also believe we must think practically, not just ideologically. Is our current position realistic? Is it fair? Is it in line with what other countries are doing? That brings me to Norway, a country that often gets held up as the gold standard in balancing energy and climate goals. Norway is still drilling. It is investing in renewables, yes, but the country is also using the oil and gas sector to fund the green transition. Is that something we can learn from? Is there a model that supports jobs and meets climate targets? Public money alone won't be enough. To really shift our economy at the scale we need, we must have significant private investment too. That includes renewables, yes, but it can also come from oil and gas companies willing to invest in cleaner technologies. There's a huge opportunity here. We can align climate objectives with economic growth if we get this right. Right now, key powers over energy policy and licensing are still held by the UK Government. That limits what the [[Scottish Government]] can do, even when the will is there. So, I suppose what I'm calling for an honest conversation. We need to stop pretending it's one or the other, we either save the planet or save jobs. It's not enough to have big ambitions if we don't have the infrastructure, investment and workforce to get us there – without hurting the people who built this country's energy industry in the first place. And of course, the big question is: will it help secure our future as an independent nation, because if so, we need it on the balance sheet.
The Herald Scotland
29-07-2025
- Business
- The Herald Scotland
Support for Scottish windfarms will increase energy bills
The offshore floating wind sector will be one of the biggest beneficiaries of reforms to the main scheme the UK Government operates to encourage firms to commit to the upfront investment required. In the latest round of the Contracts for Difference programme floating windfarm developers will be guaranteed £271 per megawatt hour (MWh) for their output regardless of what prices prevail in the market. The value of the revenue guarantee has increased by more than 10% since the latest allocation round was completed last year, when the strike price for floating windfarm output was set at £245/MWh. Mr Miliband is so anxious to ensure that the round is a success that he has also agreed to extend the standard term of CFD awards to 20 years from 15. READ MORE: Just transition fund farce deepens as Scottish firms fight over windfarm scraps The changes were announced weeks after Scottish Renewables said bold action was required from ministers to maintain the momentum behind the development of the emerging floating windfarm sector, which champions reckon can play a crucial role in the net zero drive. While only two floating windfarms have been developed off Scotland to date their performance has reinforced hopes that such schemes could offer big advantages compared with conventional facilities that have foundations on the seabed. Floating windfarms can be deployed in deeper waters allowing them to harness stronger winds that blow more consistently than those nearer to the shore. They could be placed far enough offshore to ease the concern of critics such as Mr Trump who complain about the impact of windfarms on views. Scotland is seen as being well placed to capitalise on the development of floating windfarms because of its geography and its oil and gas industry heritage. Around 90% of the waters off Scotland are deep. Dan Jackson, who is leading work on Cerulean Winds' plans for the Aspen floating windfarm off Aberdeenshire, has noted that wind strengths in the area it is targeting are more than double what they are in southern England. READ MORE: Investors eye Scottish floating windfarm bonanza The hope is that success in the floating market will help compensate for the disappointments that Scotland has suffered to date in terms of the economic impact of renewables activity. While firms have invested heavily in conventional developments on land and offshore, with CFD support, the benefits have gone mainly to companies based outside Scotland. The number of jobs created in Scotland has fallen well short of expectations. A report on the SNP Government's £500m Just Transition Fund released this month found that it helped create just 110 jobs in its first two years. Excitement about the potential value of floating wind activity in Scotland increased after US private equity investors agreed two years ago to provide £300m backing for a plan to turn the Port of Ardersier on the Cromarty Firth into a major low carbon energy support facility. But some people will be concerned that Scotland will benefit disproportionately from the support that will be provided for floating windfarm developments. Lots of firms have shown interest in Scotland. Crown Estate Scotland awarded leases covering acreage on which firms expect to deploy around 25 windfarms in rounds completed in the last three years. Successful applicants included Cerulean, Shell, SSE and ScottishPower. However, firms appear less enthusiastic about the waters off England. In June a licensing round covering acreage off South West England generated a disappointing response. READ MORE: SNP Government green jobs failure seen in English city's success The concern about Scotland's share of floating windfarm funding support will be heightened by the fact that the costs of the technology are much higher than those for established alternatives. In the allocation round that it is expected will be launched next month conventional offshore windfarms will be guaranteed £113/MWh for their output compared with £102/MWh last time. Onshore windfarms will be guaranteed £92/MWh against £89/MWh. Developers will get top up payments if market rates fall below the strike prices guaranteed under the CFD round. If rates rise above the strike price developers will have to pay over the difference. However, Governments have run the CFD scheme for years in the expectation that the amounts paid to developers will far exceed recoveries. Mr Miliband boasted that the budget for the allocation round that was completed last year would be increased by £500m to £1.5bn. The latest data collected by the regulator Ofgem indicates that wholesale prices averaged around £80/MWh in May. If rates remain around that level floating windfarm developers will be in line for big payments under the CFD contracts awarded in the forthcoming round. The costs will be added to the energy bills of householders across the UK irrespective of whether projects in the areas they live in will benefit. READ MORE: As Chevron closes Aberdeen office, what now for North Sea jobs? The proposals for the latest CFD round underline the fall in the price of solar energy schemes, which are more widespread south of the border. The strike price for solar will fall to £75/Mwh from £85/MWh. Scotland could also benefit from the increase in the strike price for larger hydropower schemes, to £168/MWh from £142/MWh. However, Scottish energy giant SSE has provided a reminder that the performance of hydropower and other renewable schemes depends on the weather. This month the energy giant revealed that its hydropower output slumped 40% in the latest quarter amid the sunshine the UK enjoyed. In a trading update issued at SSE's annual general meeting the Perth-based firm welcomed the increase in the length of new CFD contracts. The company also praised the Government's decision to retain a UK-wide electricity pricing system although critics claim this prevents householders in Scotland from benefiting from the abundance of renewable electricity in the country. SSE warned a shift to a system under which prices varied in different parts of the UK would lead to cuts in investment. As chief executive Alistair Phillips Davies retired after 12 years in post, the company made clear at the AGM that it remained keen to invest in renewables generation assets and the network improvements that will be required to make the most of them. However, SSE expects gas-fired power to remain a key part of the energy mix for years. READ MORE: Israeli-owned firm takes control of UK's biggest gas field It continues to cause the SNP Government discomfort by championing plans for a new gas-powered plant at Peterhead with related carbon capture facilities. First minister John Swinney would love to see Scotland secure the jobs the plant would create but is under intense pressure to oppose the development from the greens the [[SNP]] wants to keep onside.
The Herald Scotland
15-07-2025
- Business
- The Herald Scotland
Flagship SNP Government fund creates few renewables jobs
Supporters of the Inch Cape windfarm off the Angus coast claim it will be able to generate enough green energy to power half the homes in Scotland while making a major contribution to the UK economy. Development work is expected to be completed in 2027 following more than £3.5 billion investment in the UK's energy infrastructure. We are told this should include a significant boost for the Scottish supply chain. Take a closer look, however, and it appears that Scottish suppliers are only in line to get the scraps from the table. The bad news comes after a report found last week that the Just Transition Fund has created a risible number of jobs since it was launched amid fanfare in 2021. READ MORE: Scale of SNP Government climate change failings underlined by experts Inch Cape held an event in Montrose town hall earlier this month to highlight the opportunities for local firms to win business. This is the kind of talk that SNP ministers love. But the contracts for the supply of the most valuable and labour-intensive elements of the 72-turbine project were awarded to firms based overseas long ago. Chinese businesses were engaged to supply the foundations and towers for the turbines. Smulders of Belgium and Germany's Siemens Energy won the contract for electrical transmission infrastructure, some of which will be produced in Wallsend, Newcastle. Vestas of Denmark will supply the giant turbine blades for the windfarm. Scotland does not have a suitable production facility, despite SNP Governments making lots of noise about putting the infrastructure in place to ensure the offshore wind supply chain prospers. READ MORE: SNP Government green jobs failure seen in English city's success There was excitement in June last year when Vestas announced that it was considering developing a turbine blade production plant on the site of Leith docks in Edinburgh. Such a plant would expect to bid for work that may be awarded by the firms that are considering developing a new generation of floating windfarms off Scotland. However, the Leith site will face competition for investment by Vestas from other places as the company weighs up opportunities in the global market. Asked when the company expected to decide whether to go ahead, a spokesperson said: 'Vestas has identified the Port of Leith as a possible location for a wind turbine blade manufacturing facility. 'A final investment decision has not been made and will be based on several factors including the viability of the business case and the market outlook.' The spokesperson said Vestas would utilise its existing network of production plants to fulfil the Inch Cape contract without elaborating. Vestas has plants on the continent and one on the Isle of Wight. This produced blades used on SSE's Seagreen windfarm off Angus but is now focusing on onshore projects. READ MORE: As Chevron closes Aberdeen office, what now for North Sea jobs? Scottish firms have had to battle for a share of the smaller contracts for Inch Cape windfarm work. The Inch Cape website states that around £150m has been spent with 125 Scottish companies to date. That works out at around £1.2m each. In terms of long-term jobs impact, Scotland must make the most of the 50 jobs that are expected to be created at the Montrose operations and maintenance base. The profits generated on the output from the windfarm will go to ESB of Ireland and Chinese-owned Red Rock Power which have equal stakes in the project. The companies may claim they deserve to do well after sticking with a project that has been years in development. However, the scheme benefited from crucial UK Government support that will be funded by households. The windfarm will get revenue support under the Contracts for Difference programme. It won an award in the fourth CFD allocation round held in 2022, which was topped up in round 6 last year. READ MORE: Israeli-owned firm takes control of UK's biggest gas field Banks around the world will also share in the spoils. Some 22 lenders sighed up to support the funding round completed by Inch Cape's shareholders in January. The exercise will have provided work for armies of well-paid advisers. To put the Scottish employment numbers in perspective, Equinor has said the Rosebank oil field development it plans to complete West of Shetland will support around 1,600 jobs at the height of construction work and 450 UK-based posts during the operations phase. But former first minister Humza Yousaf condemned the UK Government's decision to approve the Rosebank development in September 2023. His predecessor Nicola Sturgeon claimed then that work on Rosebank risked slowing the green transition and the jobs that came from it. During Ms Sturgeon's term as FM, in 2021, the SNP Government struck a collaboration deal with the Scottish Greens and turned against the oil and gas industry. Since the agreement unravelled in April last year, the SNP Government led by John Swinney has vacillated about what line to take on oil and gas ahead of the Holyrood elections that are expected to be held next May. READ MORE: SNP Government oil hypocrisy shocking amid Scottish jobs cull The Scottish Government has yet to publish a final version of the draft energy strategy issued by Ms Sturgeon in January 2023, which said the development of renewables should be accelerated. The draft recommended a presumption against further oil and gas exploration in the North Sea. The future of Rosebank was cast into doubt after a Scottish court ruled in January that approval was unlawful because it failed to take account of all the related emissions. Equinor will have to submit a fresh environmental impact assessment that provides the data required. However, the green jobs promised by Ms Sturgeon and predecessors have not materialised. Last week came fresh proof that the centrepiece of Ms Sturgeon's job creation strategy has had negligible impact. In a bid to keep supporters in the SNP's North East Scotland heartlands onside Ms Sturgeon announced the £500m Just Transition Fund in 2021. The fund was suspended following the first two years of applications as MSPs expressed serious concern about its effectiveness. It was reopened to applications in May although the SNP Government has yet to publish the refresh of the just transition strategy that it promised. A report issued quietly by the SNP Government on July 7 noted the fund had created the grand total of 110 jobs in the first two years and supported 120 others. This followed a £43m outlay. The authors insisted nonetheless that the fund had provided the foundations for economic and environmental change by supporting initiatives such as the development of a skills passport to help oil and gas workers transition to renewables. That will probably provide little comfort to the 250 Aberdeen workers who are set to lose their jobs under the cost-cutting programme announced by North Sea oil heavyweight Harbour Energy in May.
The Herald Scotland
10-07-2025
- Politics
- The Herald Scotland
Could Reform overtake Labour and SNP in the North East?
Scottish Labour and the SNP would be wise to get their houses in order, or the North East of Scotland will be shaded blue-green in 2026. While rural Aberdeenshire has long been a Conservative bastion, the SNP has challenged them in recent decades, returning parliamentarians throughout the region, including former First Minister Alex Salmond. However, the spectre of Reform is posed to undo the small mercies received by the Nats last year, when they won three seats in Aberdeen and Aberdeenshire despite being wiped out nearly everywhere else. I can remember the oddity of it all, as SNP councillors and activists cheered the election of Aberdeenshire North and Moray East MP Seamus Logan sometime around four in the morning on the 5th of July, 2024. Of course, it soon became apparent that Mr Logan owed his seat in part to massive Tory defections to Reform. The insurgents received 14.6% of the vote, as Conservative boss Douglas Ross saw his vote share drop by 15.6%. Douglas Ross lost his MP seat in part due to a Reform insurgency. (Image: Jane Barlow/ PA wire) And Scottish Labour has been much-diminished across the region, a far cry from their once-dominant reign over Aberdeen City Council, which they held between 1974 and 2003 alongside two red MPs. For example, at the last Holyrood election, Labour candidates failed to gain more than 25% of the vote in all nine North East constituencies. Now, local councillors, clearly sensing the changing winds, have jumped from the Tories to Reform en masse; with six in Aberdeenshire and one in Aberdeen at last count. Ex-MP Ross Thomson has become the latest high-profile North East Tory to defect. And as oil and gas job losses in the area mount, local frustration and anger has only increased. Mr Farage and his band of rascals are well placed to mop up votes from a disaffected electorate, a reality portended by a visit he paid to the Granite City last month. In the small villages and hamlets of Aberdeenshire, cuts to library services and sheltered housing have led to false rumours of busloads of illegal migrants being dropped off in Peterhead and Fraserburgh. In Aberdeen, 250 jobs at Harbour Energy are to be axed, and energy giant Chevron is planning to leave the city after fifty years. Labour and the SNP have failed to respond to these challenges effectively, opening the door for a Reform surge next year. According to a new report, the Scottish Government's shiny 'Just Transition Fund' has led to the creation of only 110 jobs. The £43m fund was set up in 2021 by then-First Minister Nicola Sturgeon, but recent analysis has found that many of the jobs created are 'temporary, project-based, or contingent on further investment'. READ MORE Meanwhile, Labour has resisted calls from North East business chiefs to scrap the energy windfall tax, part of a 78% tariff rate on oil and gas companies. The much ballyhooed Great British Energy, promised to be a magic bullet for the region's prospects, has yet to materialise. Even if the SNP maintain their majorities in individual constituencies, Reform will doubtless return several MSPs on the regional list, which included four Tories in 2021. Working people in the North East are calling out for change. They want job security and essential services, public spaces and affordable housing. And they don't care if they burn down the whole system for a chance to get what they want.
Cision Canada
09-07-2025
- Automotive
- Cision Canada
Neo Wins Another Traction Motor Award with an Additional Tier 1 and OEM Customer in Europe
TORONTO, July 9, 2025 /CNW/ - Neo Performance Materials Inc. (" Neo" or the " Company") (TSX: NEO) (OTCQX: NOPMF) today announced that it has been awarded the supply contract for a new platform of permanent rare earth magnets with a prominent European Tier 1 supplier of electric vehicle (" EV") traction motors to a major OEM. Both the Tier 1 and OEM represent new additions to Neo's growing customer base. This new commercial partnership further strengthens Neo's reputation as a preferred supplier to multiple automotive clients. These magnets will be supplied by Neo's new rare earth magnet facility in Narva, Estonia, which is already producing and shipping qualification samples to meet contract obligations of automotive platforms it has been awarded. The project award is estimated to be approximately $50 million in cumulative revenues over the life of the project at current rare earth market prices, based on customer projections. Commercial delivery of the magnets is anticipated to begin in mid-2026 for this award. Neo's new European facility is the first sintered magnet plant to come online outside Asia, with an explicit focus on European and North American Electric Vehicle, Industrial Power Tooling, and Offshore Wind customers. The facility has already been awarded multiple traction motor magnets – widely regarded as the most technically demanding product category for sintered magnets for its high requirements in power and heat management. The facility has also expanded its product categories to non-traction-motor applications as demand for local supply chains has increased. Co-funded by the European Union's Just Transition Fund, this facility is projected to produce 2,000 t/year in phase 1, with plans to scale to over 5,000 t/year in Phase 2. The official opening ceremony for this plant will be held in September of this year, the details of which will follow in the coming weeks. Rahim Suleman, President and CEO said: "We welcome yet another commercial recognition from a new customer. What the team has accomplished in this new European rare earth permanent magnet facility is remarkable. The Neo team successfully built this magnet plant in just 500 days and is responding to growing demand from automotive customers with a sense of urgency, while staying grounded in our principles of responsible ramp-up curves for new plants. We are here for our customers, and we are proud that they are recognizing us in return." Through its bonded magnetic materials business, Neo has been a designer, manufacturer and supplier of rare earth magnetic products for EV and PHEV traction motors for years – a highlight being the design of the first commercialized and supplied heavy-rare-earth-free magnetic powder in current NEV motors. Neo has been supplying rare earth magnetic products to the automotive and industrial motor industries for over three decades. About Neo Performance Materials Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as a dedicated research and development center in Singapore. For more information, please visit Cautionary Statements Regarding Forward Looking Statements This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, launch of the new project award, operational expectations resulting from the project award, revenue expectations and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. There are many risk factors associated with the launch and operations of the new project platform. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of operations including the risks of a material adverse change in the Company's assets or revenues, or risks of unknown liabilities that may arise. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. For more information on Neo, investors should review Neo's continuous disclosure filings that are available under Neo's profile at
