UK Approves Jackdaw Gas Field as Badenoch Urges Licence
The UK government has formally approved production at the Jackdaw gas field in the North Sea, sparking a sharp debate over the project’s economic benefits and environmental consequences. Ministers confirmed that the site could start producing gas by the end of this month to help supply heat to millions of homes, alongside the creation of a new energy wealth fund.
Situated 150 miles (241km) east of Aberdeen, Jackdaw is operated by Adura, a joint venture combining Shell and Norway’s state energy company Equinor. Adura estimates the development will account for roughly 6% of domestic UK gas production—equivalent to powering 1.4 million homes—which represents around 2% of total national demand once imports are factored in. That amounts to about 2% of total UK demand, after imports are included. According to in August, in an interim response to a consultation on the future of the country’s gas supplies, Energy Minister Michael Shanks, The UK would inevitably become more reliant on imports as domestic production declined. Any gas produced from the UK Continental Shelf represents a tiny fraction of global demand and so will not lower prices nor materially boost supply,” wrote Shanks, with diminishing output from the North Sea over the past decades.
Energy Secretary Miatta Fahnbulleh, Scottish Secretary Douglas Alexander, and Chancellor John Healey marked the decision during a visit to the St Fergus Gas Terminal in Aberdeenshire on Wednesday. The extracted gas will initially be routed to the Shearwater platform for processing before being piped ashore to the St Fergus facility. Protesters gathered outside the Department for Energy Security and Net Zero in Westminster on Wednesday morning.
According to the government, Jackdaw will add £2.9bn to the UK economy, safeguard hundreds of industry jobs, and bolster domestic energy supplies across its anticipated 11-year lifespan. However, Fahnbulleh clarified to Radio Scotland Breakfast that while the gas will reach homes and businesses this month, it will not lead to lower energy bills for consumers this winter. According to when visited the platform this summer, Adura CEO Neil McCulloch, Its approval was vital to avoid domestic supply shortages this winter.
Fahnbulleh defended the decision as fully compatible with legally binding climate commitments, emphasizing that domestic extraction helps minimize reliance on higher-emission imported fuels during the transition toward nuclear power and renewables. She reaffirmed the administration’s stance to prohibit new oil and gas licensing while striving for net-zero emissions by 2050.
Alongside the field approval, ministers announced an energy wealth fund supported by an initial £2bn raised through oil and gas extraction taxes, intended to finance low-carbon and renewable energy initiatives. Prime Minister Keir Starmer noted during Prime Minister’s Questions that he had directed the chancellor and energy secretary to examine whether standing charges could be eliminated from household gas bills.
The announcement drew strong political reactions across parties. Conservative leader Kemi Badenoch thanked Starmer for approving the project but accused the prime minister of “dithering” on the decision. She called for a full repeal of the ban on new oil and gas licences, arguing that the nation possesses the necessary resources and personnel but lacks the confidence to make tough choices.
Starmer countered by saying his administration had resolved an issue that the previous Conservative government had “messed up.” He stated that past approvals failed to adequately consider environmental commitments, stressing that energy decisions must be evaluated comprehensively.
Scotland’s First Minister John Swinney welcomed the move as a source of stability for the north-east region. The SNP leader emphasized that the economic gains should directly benefit Scottish consumers and lower domestic energy bills, rather than being redirected to the Treasury. Swinney also supported the energy wealth fund, urging that its resources be ringfenced specifically for offshore renewable projects in north-east Scotland.
Scottish Conservative leader Russell Findlay hailed the decision as a victory for energy workers while criticizing the lengthy timeline, whereas local business groups and trade unions expressed strong support. Conversely, environmental organizations strongly condemned the approval. Ross Greer, co-leader of the Scottish Greens, labeled the decision “climate vandalism” that betrays future generations without addressing current energy costs.
Campaign groups including Greenpeace and Oxfam warned that the approval undermines the UK’s international climate standing and fails to secure lower bills or long-term energy security. Greenpeace co-executive director Areeba Hamid called the move the wrong choice across all fronts, while Oxfam urged the government to halt all future extraction projects, including proposals for the Rosebank oil field off Shetland. He said: “It is a devastating betrayal of our children’s future and it won’t even lower energy bills in the here and now.
Originally discovered in 2005 near the UK-Norway maritime boundary, Jackdaw was long considered technically challenging and costly to develop. Although Shell committed to the site in 2022 following regulatory consent, the Court of Session in Edinburgh ruled in January 2025 that prior approvals for both Jackdaw and Rosebank were unlawful because developers failed to properly assess the full climate impact of burning the extracted fossil fuels. Lord Ericht allowed preparatory work to proceed while updated environmental assessments were conducted, culminating in the current final clearance. A decision regarding production at Rosebank remains pending. According to he, They had got decisions wrong because they did not give any regard to climate obligations, and that “these things have to be considered in the round”. Environmental campaigners argue that this summer’s heatwaves demonstrate the need to tackle climate change by rejecting both Jackdaw and Rosebank. In an area where Westminster originally granted licences to explore for oil and gas in 1970 and 1989, jackdaw sits close to the boundary between the British and Norwegian sectors of the North Sea.
