Jackdaw's production approval has prompted Scottish First Minister John Swinney to seek a northeast Scotland focus for the UK's new energy fund, which is intended to direct North Sea revenues into clean energy.
In a letter to Prime Minister Andy Burnham, Swinney called for the Energy Wealth Fund to prioritize offshore renewable investment in the region. He asked when it would begin, who would manage it and how its money would be distributed. The UK government has not announced a regional allocation.
The government has pledged an initial £2 billion for the fund and intends to invest future North Sea oil and gas tax revenue in renewable and low-carbon projects.
The Jackdaw production decision came on Oct. 21, when the North Sea Transition Authority (NSTA) granted consent after Energy Secretary Miatta Fahnbulleh agreed that the regulator could do so. The field already held a license; the new consent allows production.
The government says gas could begin flowing as early as the end of October. It estimates the field could lift UK domestic gas production by around 6% at its peak and operate for up to 11 years. The developer projects 27 new direct jobs, 273 existing jobs safeguarded and about £2.9 billion added to the UK economy over the project. Those figures remain estimates.
Additional domestic supply does not mean cheaper household energy. Energy Minister Michael Shanks told Parliament that Jackdaw would not reduce bills because gas prices are set internationally.
The Court of Session overturned Jackdaw's previous consent after its environmental review failed to account for emissions from burning the gas. Fahnbulleh's replacement decision considered those emissions and found the project likely to have a significant environmental effect. She concluded that it would not prevent the UK from meeting its legally binding climate targets, while the decision said Jackdaw's net effect on global emissions could not be established confidently.
Shanks said a decision on the separate Rosebank project would follow, but gave no date. The government has also given no start date or regional investment plan for the Energy Wealth Fund.
