The UK government has approved the development of the Jackdaw North Sea gas field, expecting the project to boost domestic production and contribute an estimated £2.9 bn to the economy, the government said on October 21.

The decision followed a new environmental assessment framework introduced after a 2024 Supreme Court ruling requiring oil and gas projects to account for emissions from burning extracted fuels.

The government expects Jackdaw to increase domestic gas production by around 6% at its peak and support supplies over the field’s projected lifespan of up to 11 years.

The government said the decision was compatible with the UK’s legally binding climate commitments, including its target of reaching net-zero emissions by 2050. It also reaffirmed its commitment not to issue new licences for oil and gas exploration in new fields while allowing existing licensed fields to operate over their lifespans.

Energy Secretary Miatta Fahnbulleh agreed that the North Sea Transition Authority (NSTA) could grant consent for gas production at the already-licensed field.

Fahnbulleh said the project would support energy security by supplying domestically produced gas and helping reduce reliance on imported fuels as the country expands renewable and nuclear energy.

Stuart Payne, Chief Executive of the NSTA, said the regulator had granted consent following scrutiny of the project. He said Jackdaw would use existing infrastructure, generate tax revenues and support supply-chain jobs, while having emissions intensity below the UK average.

Separately, the government announced an initial £2 bn investment in a new Energy Wealth Fund, which will use North Sea oil and gas revenues to support renewable and low-carbon energy projects.