Rebecca Groundwater, Head of External Affairs at the Energies Industries Council, appeared yesterday for a hearing with the Scottish Affairs Committee in the House of Commons to discuss GB Energy and the net-zero transition.
Here’s the thing: Scotland’s energy supply chain is deeply rooted in oil and gas, but this same industry is the only one currently able to finance us through the energy transition. In fact, in Scotland, about 85% of companies involved in offshore wind, work or have worked in oil and gas. Also in Scotland, 85% of hydrogen and 84% of carbon capture companies are coming from oil and gas.
Energy supply chain companies, especially in Scotland, are active across industry verticals—oil and gas, renewables, hydrogen, you name it. But they’re stuck in a tricky spot. Funding for new technologies is patchy, and projects can take years to get off the ground. In the meantime, they’re relying on oil and gas revenues to keep the lights on.
Without a clear financing strategy, many are left scrambling. Some are even looking abroad, where investment opportunities and risk factors are more appealing.
And then there’s the policy side of things. Right now, the conversation around energy is siloed—hydrogen here, carbon capture there. But the reality is that companies aren’t working in silos. They’re juggling multiple technologies, and they need support that reflects that.
Take one SME Rebecca mentioned: they grew from a small oil and gas company to a major player in carbon capture, only to find they no longer qualified for cleantech energy funding. Now, they’re reverting to fossil fuels and chasing opportunities overseas.
Skills is another key area that Rebecca touched on. Training someone in new tech costs around £20,000 over a year, but with no guarantee of steady projects, it’s a risky investment. Add to that the risk of losing talent to higher-paying global competitors, and it’s easy to see why small businesses are feeling the squeeze.
Rebecca’s message boils down to: if we want to hit net zero, we need a strategy that works for the whole supply chain. That means breaking down silos, providing consistent funding, and recognising the dual role these companies play. It’s not just about hitting targets—it’s about making the transition achievable for the people and businesses driving it. And right now, that’s where we’re falling short.
Her message comes as energy supply chain leaders, financiers and policy makers gathered in London EIC’s Bankable Energies conference. The discussions at Bankable Energies show that regardless of size or sector many of the blockers which exist today are the same–pace, financing and scale. We need to do more at a faster pace to achieve net zero.
Here's a link to the hearing: https://www.parliamentlive.tv/Event/Index/2898c512-1f29-4ef6-869a-e4ad86c5f298.