LONDON (dpa-AFX) - The UK government has approved extraction from the Jackdaw gas field in the North Sea.
Jackdaw will start to supply gas to British homes and businesses from the end of this month, after the Energy Secretary agreed that the regulator can grant consent for gas to be produced at the field.
The Jackdaw decision, opposed by the Green Party, is expected to increase domestic gas production by around 6 percent at its peak, according to the Department for Energy Security and Net Zero.
The Jackdaw gas is enough to support the UK's gas supply over its lifespan of up to 11 years, boost the country' energy security, protect hundreds of jobs, and add an estimated £2.9 billion to the UK economy.
Recent events in the Middle East have triggered global energy shocks and pushed up bills for families across the country.
Also on Wednesday, Chancellor John Healey announced the establishment of a new Energy Wealth Fund, that will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects and support the green transition. Reflecting our commitment to the North Sea, this will start with an initial £2 billion injection of funding, with future revenues from the North Sea flowing into the fund over time.
The announcement comes ahead of the Budget, which will set out the government's plan to deliver good growth in every postcode. By reinvesting Britain's energy wealth in renewable and low carbon energy infrastructure, the Fund will unlock investment, back the industries of the future and create skilled jobs across Scotland and the UK.
This investment in renewable energy will substantially delink gas and electricity by the end of the term of the current Parliament. By investing in and building more renewable and low carbon power, gas will set the price of electricity less often, helping end Britain's exposure to volatile international gas markets and help get bills down for good in the long term.
Energy Secretary Miatta Fahnbulleh assessed that the Jackdaw project will not prevent the UK from being able to meet its legally binding limits on carbon emissions and achieve net-zero by 2050.
The Department for Energy Security and Net Zero said Wednesday's decision is consistent with the government's manifesto commitment not to issue any new licences to explore new fields while managing existing fields for their entire lifespan. The Jackdaw gas field is already licensed and the North Sea Transition Authority's decision to grant consent now gives the developer the green light to begin operations at the field.
The Supreme Court had ruled on the Finch case in 2024 that North Sea operators must consider the impact of burning the extracted oil and gas in environmental impact assessments. This meant the Energy Secretary had to consider a new environmental framework alongside all relevant factors in the case, including responses to the public consultation.
Energy Secretary Miatta Fahnbulleh said, 'Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.'
He added that this decision will support the country's energy security with homegrown gas this winter and help minimize the UK's use of imported higher emission fuels as we continue our transition to renewables and nuclear.
Green Party leader in England and Wales, Zack Polanski, described the decision as 'climate vandalism,' and accused the Labor Party of abandoning all credibility in the fight against climate change.
The gas field is estimated to produce approximately 23 million tons of carbon dioxide emissions.
'This is a victory for Shell over the people,' he said, referring to the British company that owns the large offshore natural gas field which lies in the central North Sea.
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