North Sea oil giant underlines scale of SNP Government's delusions about the potential of the renewables industry after axing major windfarm project

The SNP Government has been taught a tough lesson by an oil and gas giant which has made clear ministers' hopes that renewables will fuel prosperity in Scotland are deluded.

Shell bosses last week underlined the fact that the company had lost interest in a flagship windfarm project off Scotland as they made clear the firm was returning to its oil and gas roots with enthusiasm.

Shell was a big supporter of the drive to develop low carbon energy sources such as wind power and hydrogen under former chief executive Ben van Beurden. In 2022, the company bid successfully for an offshore licence in the ScotWind round which generated huge interest.

But Mr van Beurden’s successor, Wael Sawan, has underlined the fact there has been a big change of heart in the Shell boardroom.

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Soon after he was appointed in 2023, Mr Sawan expressed doubts about whether Shell could make much money from developing floating windfarms of the kind it planned to install off Scotland.

Shell chief executive Wael Sawan (Image: Dan Kennedy/Shell)

In a presentation to City analysts last week, Mr Sawan highlighted the fact the company had decided to reallocate capital it planned to invest in ScotWind projects to its oil and gas assets.

He made the remarks weeks after Shell said it had scrapped plans to develop a giant floating windfarm off Scotland, which was expected to generate £3bn work for the Scottish supply chain.

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