The Scottish Government has announced a new £62 million fund to help the energy sector recover from the “dual economic impacts” of the coronavirus pandemic and the oil and gas price crash.

The Energy Transition Fund will support businesses in the oil, gas and energy sectors and help attract private sector investment in the region over the next five years – focusing on the North East of the country, the investment will also benefit the wider Scottish energy sector, economy and supply chain.

Major projects to be considered for financial assistance include a Global Underwater Hub, Net Zero Solution Centre projects, a Hydrogen Hub, the Acorn project and an Energy Transition Zone.

The Scottish Government notes the industry should use the money to ensure the country can maintain its position on the international stage as one of the leaders in renewable energies and the journey towards net zero.

Economy Secretary Fiona Hyslop said: “This is an extremely difficult time for our business community and we recognise the need to do all we can to help the recovery of key sectors of the economy and Scotland’s regions.

“This package of investment for the North East will support our energy sector as it recovers from the impact of COVID-19 and will help us make significant progress as we move towards net zero by 2045.

“Aberdeen is recognised globally as a centre of excellence in oil and gas and this funding will help ensure that the knowledge, skills and expertise it has to offer will play a vital role in the energy transition.

“It is vital we move quickly to seize the opportunity to take forward a green, low-carbon recovery and support the workforce as the energy sector diversifies. Now is an opportune time to re-imagine the Scotland around us and to begin building a greener, fairer and more equal society and economy focused on wellbeing.”