The UK government has approved production from the controversial Jackdaw gas field in the North Sea, with the first gas potentially flowing by the end of this month. Ministers stated the decision would help heat millions of homes and boost the economy, while also announcing a new £2 billion energy wealth fund.

However, the approval has drawn criticism from environmental campaigners who argue it will hinder efforts to combat climate change. The decision also highlights a division within the political landscape, with Conservative leader Kemi Badenoch urging a repeal of the ban on new oil and gas licences, while the government defends its approach.

The Jackdaw field, operated by Adura (a joint venture between Shell and Equinor), is located 150 miles east of Aberdeen. Adura projects that the field will supply approximately 6% of the UK's gas production, enough to power 1.4 million homes. After accounting for imports, this amounts to about 2% of total UK demand.

The gas will be transported to the Shearwater platform for processing before being piped to the St Fergus gas terminal in Aberdeenshire. The UK government estimates that over its 11-year lifespan, Jackdaw will support UK gas supply, preserve hundreds of jobs, and contribute £2.9 billion to the economy.

Energy Secretary Miatta Fahnbulleh confirmed that gas from Jackdaw could be available this month, though she cautioned it would not lower energy bills this winter. She emphasized that the project aligns with the UK's legally binding climate commitments and its net-zero targets by 2050, while minimizing the use of higher-emission imported fuels.

At Prime Minister's Questions, Kemi Badenoch thanked the government for finally approving Jackdaw but accused ministers of "dithering." She also called for the Labour party to reverse its ban on new oil and gas licences, stating the UK "has the resources, the expertise and the people" but has "lost the confidence to make tough decisions."

The prime minister responded that the previous Conservative government had "messed up" the original decision-making process by not adequately considering climate obligations. He asserted that decisions must now be made with a comprehensive view of environmental responsibilities.

Meanwhile, a decision is still pending on the Rosebank oil field, the UK's largest known untapped oil resource, located off the coast of Shetland. The government's establishment of an energy wealth fund, seeded with £2 billion from oil and gas tax revenues, is intended to finance investments in renewable and low-carbon energy projects.