‘GOLDEN AGE OF CLEAN ENERGY ABUNDANCE’ – ED MILIBAND
10,000 jobs, including 1,500 apprenticeships, to be created as the Government announces multi-billion investment to build Sizewell C.
Chancellor to confirm funding at the GMB Congress ahead of Spending Review, as Energy Secretary vows ‘golden age’ of nuclear.
Investment to deliver clean power to millions of homes, cut energy bills and boost energy security.
Government commits over £6 billion of investment to nuclear submarine industrial base to deliver on Strategic Defence Review
Ten thousand jobs will be created as the Government announces a £14.2 billion investment to build Sizewell C nuclear plant as part of the Spending Review, ending years of delay and uncertainty.
The Chancellor is set to confirm the funding at the GMB Congress later today ahead of the Government’s Spending Review, as the Energy Secretary vows a ‘golden age’ of nuclear to boost the UK’s energy security.
The Government’s investment will go towards creating 10,000 jobs, including 1,500 apprenticeships, and support thousands more jobs across the UK.
The company has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70% of contracts predicted to go to 3,500 British suppliers – supporting new jobs in construction, welding, and hospitality.
The equivalent of around six million of today’s homes will be powered with clean homegrown energy from Sizewell C. The investment in clean, homegrown power brings to an end decades of dithering and delay, with the Government backing the builders in the drive for energy security and kick-starting economic growth.
The announcement comes as the Government is set to confirm one of Europe’s first Small Modular Reactor programmes. This comes alongside record investment in R&D for fusion energy, worth over £2.5 billion over five years. Taken together with Sizewell C, this delivers the biggest nuclear building programme in a generation.
Clean, home-grown power at Sizewell C will help drive the UK’s energy security, as part of the Government’s mission to protect family finances by replacing the UK’s dependency on fossil fuel markets controlled by dictators with homegrown power that we control.
Chancellor of the Exchequer, Rachel Reeves, said:“Today we are once again investing in Britian’s renewal, with the biggest nuclear building programme in a generation. This landmark decision is our Plan for Change in action.
“We are creating thousands of jobs, kickstarting economic growth and putting more money people’s pockets.”
Energy Secretary Ed Miliband said:“We will not accept the status quo of failing to invest in the future and energy insecurity for our country.
“We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.
“This is the Government’s clean energy mission in action – investing in lower bills and good jobs for energy security.”
Sizewell C
Sizewell C will provide 10,000 people with employment at peak construction and support thousands more jobs across the UK, including 1,500 apprenticeships.
The company has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70% of contracts predicted to go to 3,500 British suppliers – supporting new jobs in construction, welding, and hospitality. Jobs in the nuclear industry pay well above national averages and the government is committed to working with nuclear trade unions such as the GMB, Unite, and Prospect, who will continue to play a pivotal role in building the industry.
Despite the UK’s strong nuclear legacy, opening the world’s first commercial nuclear power station in the 1950s, no new nuclear plant has opened in the UK since 1995, with all of the existing fleet except Sizewell B likely to be phased out by the early 2030s.
Sizewell C was one of eight sites identified in 2009 by then-Energy Secretary Ed Miliband as a potential site for new nuclear. However, the project was not fully funded in the 14 years that followed under subsequent Governments.
The Government’s nuclear programme is now the most ambitious for a generation – once small modular reactors and Sizewell C come online in the 2030s, combined with Hinkley Point C, this will deliver more new nuclear to grid than over the previous half century combined.
Small Modular Reactors
Great British Nuclear is expected to announce the outcome of its small modular reactor competition imminently, the first step towards the goal of driving down costs and unlocking private finance with a long-term ambition to bring forward one of the first SMR fleets in Europe.
The government’s nuclear resurgence will support the UK’s long-term energy security, with small modular reactors expected to power millions of homes with clean energy and help fuel power-hungry industries like AI data centres.
This follows reforms to planning rules announced by the Prime Minister in February 2025 to make it easier to build nuclear across the country – changing the rules to back the builders of this nation, and saying no to the blockers who have strangled our chances of cheaper energy, growth and jobs for far too long.
The government is also looking to provide a route for private sector-led advanced nuclear projects to be deployed in the UK, alongside investing £300m in developing the world’s first non-Russian supply of the advanced fuels needed to run them.
Companies will be able to work with the government to continue their development with potential investment from the National Wealth Fund.
Fusion Energy
The government is also making a record investment in R&D for fusion energy, investing over £2.5 billion over 5 years. This includes progressing the STEP programme (Spherical Tokamak for Energy Production), the world-leading fusion plant in Nottinghamshire, creating thousands of new jobs and with the potential to unlock limitless clean power.
This builds on the UK’s global leadership to turbocharge economic growth in the Oxford-Cambridge corridor, while helping deliver the UK’s flagship programme to design and build a prototype fusion power station on the site of a former coal-fired plant.
Defence
To secure the UK as a leader in both civil and defence nuclear, the government is also making continued long-term investment in our Defence Nuclear Enterprise and its industrial base, which is critical for our national security while also being a significant generator of economic opportunities, jobs and growth across the entire country.
Further investments in the defence nuclear sector include over £6bn over the SR period to enable a transformation in the capacity, capability and productivity of the UK’s submarine industrial base, including at BAE Systems in Barrow and Rolls-Royce Submarines in Derby – to deliver the increase in the submarine production rate announced in the Strategic Defence Review.
In addition, we will embark on a multi-decade, multi-billion redevelopment of HMNB Clyde, with an initial £250m of funding over 3 years, supporting jobs, skills and growth across the West of Scotland.
The government will also invest over £420m of additional funding in Sheffield Forgemasters, securing 700 existing skilled jobs and creating over 900 new construction roles.
Scottish Government calls for closer energy links with Europe
The Scottish Government is calling for closer co-operation with Europe to help lower energy bills and boost investment.
Ahead of upcoming UK Government talks with the EU the Scottish Government has published a report, identifying a number of opportunities to more closely align with the European Union on energy matters.
These include:
accelerating the adoption of more efficient UK-EU electricity trading arrangements to bring down energy costs for consumers
linking the UK and EU Emissions Trading Schemes (ETS) to help reduce costs and barriers to trade
Estimates from the UK energy industry predict that unless the UK moves toward closer cooperation with the EU on energy and climate, it may lead to additional costs of up to £10billion in 2024-25, through higher energy bills and lower Treasury revenues.
The Scottish Government’s wants Scotland to be an EU member state, however the report published today sets out immediate actions which would rebuild closer collaboration with the EU on energy and climate matters and offset some of the damage caused by Brexit.
Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “As we approach the fifth anniversary of Brexit, the costs to the people of Scotland are becoming ever clearer.
“The best future for Scotland is to be a member state of the EU. But we will always be a voice for closer co-operation with our fellow Europeans – in particular around issues which impact us all such as lowering energy bills and driving up investment in renewables.
“This paper highlights the key areas where working together is vital for achieving our shared ambitions – driving economic growth, reducing costs, strengthening energy security and substantially contributing to our shared climate goals.
“We have a pivotal role to play and stand ready to work collaboratively with the UK Government and wider partners to re-build a closer relationship with Europe in this space.”
French state-owned energy company EDF has announced it will keep four ageing nuclear power stations in Britain open for longer than planned.
EDF said two stations currently due to close in March 2026 — Hartlepool and Heysham 1 — will now remain online until March 2027, while Heysham 2 and Torness – scheduled to close in March 2028 – will now stay open until March 2030.
Responding to EDF’s announcement that they plan to extend the life of Torness nuclear power station Sam Richards, CEO of pro-growth campaign group Britain Remade, said:“The news that EDF is moving ahead with extending the life of Torness nuclear power station is hugely welcome news.
“If the government and industry is to deliver a clean energy grid by 2030 it is essential that we keep as much nuclear capacity as possible on the grid. If we fail to do this the result will be the burning of more natural gas and more emissions released into the atmosphere.
“EDF’s intentions are now clear. Ministers and the Office for Nuclear Regulation now need to urgently back their plans to extend the life of existing reactors where it is safe to do so. We have done it before, and we can do it again.
“With this announcement ministers must not take their eyes off the ball and continue to push for the rapid development of Small Modular Reactors to run alongside their bigger cousins.
“They must also increase grid capacity and slash the time it takes for clean energy projects to get connected to the grid. Extending our existing reactors is a big step, but it’s not job done.”
Grangemouth’s industrial workforce and community are being asked to contribute their views on the future of the area.
A draft plan has been published as part of work to support a just transition to net zero and support the growth of the area towards a decarbonised economy.
The regional just transition plan is the first of its kind. It sets out the Scottish Government’s vision for the future of the Grangemouth industrial cluster and how the local community could benefit as a result.
By successfully decarbonising, Grangemouth can become a global leader in sustainable manufacturing and production, attracting investment and supporting both the existing and future workforce, and the community, long into the future.
The Scottish Government has worked in partnership with the Grangemouth Future Industry Board to develop the Grangemouth Industrial Just Transition Plan which supports industrial decarbonisation, low-carbon manufacturing, net zero community wealth building and reskilling and developing the local workforce.
Proposed actions include:
developing an industry-led technical and commercial investment strategy which includes a decarbonisation pathway to secure investment for scale up
creating a Grangemouth Industrial Skills offer to help tailor training needs for the existing and future workforce
improving the co-ordination of initiatives across the Forth Valley to ensure targeted interventions match needs
funding a recognised Community Engagement and Participation Manager as a first step in supporting the community to play a role in decision making
establishing a Grangemouth Regulatory Hub to support a just transition and understand how regulation can unlock industrial decarbonisation
Acting Minister for Climate Action Alasdair Allan said: “Grangemouth has long played a vital role as Scotland’s leading industrial cluster and it is right that the area continues to help lead the way in our journey to net zero by 2045.
“Our first regional Just Transition plan published today sets out our approach to support the growth of a decarbonised economy that puts local communities at its heart. It makes clear our vision for the future and gives specific actions across a number of areas to help achieve a just transition for Grangemouth.
“The plan complements our ongoing activity focused around Grangemouth, including our support package in response to the proposed closure of the refinery and the work we are doing to explore low carbon transition opportunities for the refinery workforce.
“We are working hard to secure a sustainable, long-term future for the wider industrial cluster and its skilled workforce, and this plan will be vital in helping us to deliver this.
“The consultation is an opportunity to help shape the development of the plan, and Grangemouth’s future. I encourage all who have a vested interest to participate.”
CVS Falkirk and District Chief Executive Officer, Victoria McRae said: “The voice of local communities must be heard in relation to the plans for a Just Transition for Grangemouth.
“As the Third Sector Interface for the local area, CVS Falkirk and District are pleased to be able to take forward, support and facilitate these important conversations. We look forward to hearing a range of views and we have opened a Hub in Grangemouth’s Town Centre to provide a base for this discussion and engagement.”
Syngenta Head of Corporate Affairs UK, Luke Gibbs said: “Syngenta is a large scale fine chemical manufacturer anchoring the Grangemouth Chemical Cluster.
“We believe that the Grangemouth Just Transition Plan is an important part of achieving a sustainable future across the range of activities that together form the wider Grangemouth industrial area – fine chemicals, petrochemicals, pharmaceuticals, and biotechnology.
“As such, this consultation provides a key opportunity for companies in Grangemouth to input their views and highlight needs, and collectively achieve a sustainable, enabling, investable, and viable future for all.”
Join Unite on Thursday 28 November 2024 and help Save Scotland’s last oil refinery.
Get your work colleagues, friends and family to come too. From the Workplace to the Capital, join the rally on Thursday 28 November 2024.
Assemble at 10:00 at Johnston Terrace (top end), Edinburgh, EH1 2PW and at 10.20 march to Holyrood for a rally with Sharon Graham, Unite general secretary.
CARBON CAPTURE FUNDING + VISIT ‘MAKE A MOCKERY’ OF PLANNING PROCESS
First Minister John Swinney will visit the site of an innovative carbon capture and storage (CCS) facility in Aberdeenshire today where he will unveil new Scottish Government funding for the project.
The Acorn project, based in St Fergus, would take captured CO2 emissions from industrial processes across the country and store it safely under the North Sea.
The First Minister will meet representatives of the project and undertake a short tour of the site, before meeting staff and apprentices.
While in Aberdeenshire the First Minister will also meet business leaders and members of the Scottish seafood sector at a roundtable discussion in Peterhead.
Speaking ahead of his visit to the North East, the First Minister said: “Carbon capture and storage will play a huge role in Scotland’s net zero future.
“The Scottish Government is wholly committed to supporting the Acorn Project, which will take advantage of our access to vast CO2 storage potential and our opportunities to repurpose existing oil and gas infrastructure.
“Scotland’s energy transition presents one of the greatest economic and social opportunities of our time. This landmark project will help to support a just transition for oil and gas workers in the North East and across the country, by drawing upon their world-leading skills and expertise to create many good, green jobs in the coming years.
“The North East is also a powerhouse of Scotland’s word-class seafood processing sector, which contributes massively to our economy. According to recent figures the region alone is home to more than 3,379 full time equivalent jobs.
“The Scottish Government will continue to engage and work closely with the sector, and communities, to ensure that Scotland’s fishing industry, the wider seafood sector, and our marine environment can thrive sustainably.”
Climate campaigners have responded to the First Minister’s plans to visit to the Aberdeenshire CCS project saying it ‘makes a mockery’ of the planning process and questioning why there was more public funding being pledged for fossil fuel infrastructure.
The visit was announced as news broke of an official complaint into the Scottish Government’s handling of the planning application for the Peterhead gas power station with carbon capture.
The FM’s visit raises a number of concerns including that the explicit endorsement of this project may undermine any future assessment of a planning application to build the Acorn Project.
Environmentalists are also alarmed that public money is being handed to a pet project of fossil fuel companies. Shell, who are a key partner in Acorn, have made £50 BILLION profit in the past two years.
The Acorn Project is not yet in the planning system, and no application has been made yet it appears the FM is gambling our energy future on this technology working. The Scottish Government’s over-reliance on faltering Negative Emissions Technologies created a huge gap in its calculations around emissions reductions for the 2030 climate targets.
CCS has never delivered the capture rates that its proponents claim and there is a growing body of evidence that all it is doing is capturing public money and providing greenwash for continued fossil fuel expansion.
Friends of the Earth Scotland climate and energy campaigner Caroline Rance said: “The Acorn carbon capture terminal does not exist and there hasn’t even been a planning application submitted to build it.
“However, with these fawning statements of support, the First Minister is in danger of making a mockery of the Scottish Government conducting a fair assessment of future planning applications.
“Vital public services are crying out for funding yet John Swinney has decided to give millions of pounds to a pet project of Shell, who made £50 billion profit in the last two years. The public must be starting to think the Scottish Government has been captured by the fossil fuel industry with hundreds of cosy meetings, huge handouts and the rolling back of positions on ending oil and gas.
“The Acorn Project is a pipe dream of polluters that will never live up to its hype.The purpose of CCS is to greenwash plans to keep burning oil and gas. Carbon capture has already had billions of pounds and decades of work to prove itself and it has failed on its promises everywhere it has been tried.
“Both the Scottish and UK Governments need to realise that public money would be far better invested in climate solutions that work today and can create decent green jobs such as home insulation, public transport and affordable renewable energy.”
Key questions for the First Minister:
• How can Ministers making future planning decisions be expected to judge the Acorn project on its merits when the First Minister is fawning over it and is funnelling public money towards it?
• Why is public money required to deliver this project when the oil companies who will benefit are making obscene profits?
• How will this project avoid the failures that have been seen in every other carbon capture project around the world?
Energy Security Secretary Grant Shapps meets with industry leaders to discuss the Government’s energy security and business plans to invest over £100bn, including to accelerate renewables, to help grow our economy
Discussions include new powers to protect critical energy infrastructure from disruptive protest groups and maintain energy supply
Summit hosted at No10 Downing Street as part of Government push to strengthen energy security, support jobs and attract investment in the UK’s energy industry
Leaders of the UK’s energy industry will meet in Downing Street today to discuss their plans to collectively invest over £100bn and create jobs around the country, working with Government to boost energy security.
Energy Security Secretary Grant Shapps will meet a wide range of energy companies – including EDF, SSE, Shell and BP, who collectively have multi-billion pound plans to invest in low and zero-carbon projects.
Each of these will support thousands of jobs across the country, which could help reduce household energy bills while delivering cleaner, more secure sources of energy, to deliver on the ambition to have the lowest wholesale electricity prices in Europe by 2035.
Mr Shapps will outline Government measures to protect UK energy supplies from disruption both at home and abroad. He will highlight decisions to invest in home-grown energy sources – including renewables, a revival in nuclear power, and backing North Sea oil and gas.
But he will also highlight measures to protect critical energy infrastructure from disruptive protests. This follows in the wake of protests such as those at the Kingsbury and Thurrock clusters of oil terminals and Grangemouth refinery.
The Public Order Act now includes a new criminal offence of interfering with key national infrastructure – including oil refineries – aimed at preventing protests from causing or threatening public safety or serious disruption.
It particularly addresses tactics that these protesters have used such as locking on and tunneling.
Energy Security Secretary Grant Shapps said: “We need to send the message loud and clear to the likes of Putin that we will never again be held to ransom with energy supply. The companies I am meeting in Downing Street today will be at the heart of that.
“Energy industry leaders can see that this Government will back home-grown, secure energy – whether that’s renewables, our revival in nuclear, or our support for our vital oil and gas industry in the North Sea.
“But it is a sad reality that we also need to protect our critical national infrastructure from disruptive protests. Today I’ll be setting out what we are doing to achieve this and want to hear from the energy companies the vital work they are doing in this area.”
Energy firms have demonstrated their confidence to invest in the UK, and collectively the firms meeting at 10 Downing Street plan to invest tens of billions over the next decade in energy projects across the country.
Some of these investment commitments include:
Shell UK aims to invest £20-25 billion in the UK energy system over the next 10 years. More than 75% of this is intended for low and zero-carbon products and services.
BP intends to invest up to £18bn in the UK to the end of 2030.
SSE plc have announced plans to invest £18bn up to 2027 in low carbon infrastructure creating 1,000 new jobs every year to 2025. SSE’s plans could see it invest up to £40bn across the decade to 2031/32.
National Grid plc will be investing over £16bn in the five-year period to 2026.
EDF have outlined plans to invest £13bn to 2025.
RWE have an ambition to invest up to £15bn in clean energy infrastructure in the UK by 2030.
To provide greater reassurance and support to industry, the Energy Security Secretary will outline the range of measures the Government is taking to protect energy infrastructure from intentional disruption, as well as maintaining the network’s strong resilience.
This includes:
The Public Order Act, with specific powers coming into effect in July to protect critical infrastructure;
Working with the Police to ensure protestors cannot gain unauthorised access to sites;
The work of the Civil Nuclear Constabulary, whose 1,300 officers and 300 support staff operate to protect nuclear sites across England, Scotland and Wales
The Energy Security Secretary will also discuss progress on major UK energy investment projects across renewable projects, oil and gas, new nuclear, and new technologies such as carbon capture.
They include:
Carbon capture – earlier this week, the Prime Minister announced two further projects in Humber and the North East of Scotland, which can move towards becoming clusters for this new technology – alongside eight already being considered, and two existing clusters in the North East, and in the North West and Wales.
Oil and gas – The Prime Minister has also confirmed future licensing rounds will continue for the extraction of oil and gas in the North Sea – while the North Sea Transition Authority reports they have received over 115 bids from 76 companies in the latest licensing round.
Nuclear – companies can now register their interest with the UK’s new organisation, Great British Nuclear, to secure funding support to develop new technologies including Small Modular Reactors.
Offshore wind – the UK has the world’s largest operational wind farms off its shores, with plans for further development off the East Anglia Coast and at Dogger Bank in the North East which could collectively provide enough clean energy for over 6.5million homes.
Hundreds of new oil and gas licenses will be granted in the UK, PM confirms
Prime Minister commits to future oil and gas licensing rounds, as new analysis shows domestic gas production has around one-quarter the carbon footprint of imported liquified natural gas
North East Scotland and the Humber chosen as locations for two new carbon capture usage and storage clusters – building a thriving clean industry in the North Sea which could support up to 50,000 jobs
Investment in the North Sea will continue to unlock new projects, protect jobs, reduce emissions and boost UK energy independence
Hundreds of new oil and gas licences will be granted in the UK, the Prime Minister has confirmed today (Monday 31 July), as the UK Government continues to back the North Sea oil and gas industry as part of drive to make Britain more energy independent.
The Government and the North Sea Transition Authority (NSTA) are today announcing a joint commitment to undertake future licensing rounds, which will continue to be subject to a climate compatibility test.
By adopting a more flexible application process, licences could also be offered near to currently licensed areas – unlocking vital reserves which can be brought online faster due to existing infrastructure and previous relevant assessments.
With the independent Climate Change Committee predicting around a quarter of the UK’s energy demand will still be met by oil and gas when the UK reaches net zero in 2050, the Government is taking steps to slow the rapid decline in domestic production of oil and gas, which will secure our domestic energy supply and reduce reliance on hostile states.
This will increase the UK’s energy security and reduce dependence on higher-emission imports, whilst protecting more than 200,000 jobs in a vital industry as we grow the UK economy.
As part of a visit to a critical energy infrastructure site in Aberdeenshire today, the Prime Minister will highlight the central role the region will play in strengthening the UK’s energy independence and meet the next generation of skilled apprentices key to driving this work forward.
The NSTA – responsible for regulating the oil, gas and carbon storage industries – is currently running the 33rd offshore oil and gas licensing round. They expect the first of the new licences to be awarded in the autumn, with the round expected to award over 100 licences in total.
Future licences will be critical to providing energy security options, unlocking carbon capture usage and storage and hydrogen opportunities – building truly integrated offshore energy hubs that make the best use of the established infrastructure.
This comes as new analysis released by the NSTA today shows that the carbon footprint of domestic gas production is around one-quarter of the carbon footprint of imported liquified natural gas.
As the UK is a rapidly declining producer of oil and gas, new oil and gas licences reduce the fall in UK supply in order to ensure vital energy security, rather than increase it above current levels – so that the UK remains on track to meet net zero by 2050.
UK Prime Minister Rishi Sunak said: “We have all witnessed how Putin has manipulated and weaponised energy – disrupting supply and stalling growth in countries around the world.
“Now more than ever, it’s vital that we bolster our energy security and capitalise on that independence to deliver more affordable, clean energy to British homes and businesses.
“Even when we’ve reached net zero in 2050, a quarter of our energy needs will come from oil and gas. But there are those who would rather that it come from hostile states than from the supplies we have here at home.
“We’re choosing to power up Britain from Britain and invest in crucial industries such as carbon capture and storage, rather than depend on more carbon intensive gas imports from overseas – which will support thousands of skilled jobs, unlock further opportunities for green technologies and grow the economy.”
The UK’s oil and gas industry are also vital to driving forward and investing in clean technologies that we need to realise our net zero target, like carbon capture usage and storage, by drawing from the sector’s existing supply chains, expertise and key skills whilst protecting jobs.
Today, the Government has confirmed that projects Acorn in North East Scotland and Viking in the Humber have been chosen as the third and fourth carbon capture usage and storage clusters in the UK.
The Government has already committed to deploy CCUS in two industrial clusters by the mid-2020s – the HyNet cluster in North West England and North Wales, and the East Coast Cluster in the Teesside and Humber – and another further two clusters by 2030 – now confirmed as Acorn and Viking.
Together, these four clusters will build a new thriving carbon capture usage and storage industry, which could support up to 50,000 jobs in the UK by 2030.
The UK has one of the largest potential carbon dioxide storage capacities in Europe, making the North Sea one of the most attractive business environments for CCUS technology. The Government has committed to provide up to £20 billion in funding for early deployment of CCUS, unlocking private investment and job creation.
Energy Security Secretary Grant Shapps said: “In the wake of Putin’s barbaric invasion of Ukraine, our energy security is more important than ever. The North Sea is at the heart of our plan to power up Britain from Britain so that tyrants like Putin can never again use energy as a weapon to blackmail us.
“Today’s commitment to power ahead with new oil and gas licences will drive forward our energy independence and our economy for generations. Protecting critical jobs in every region of the UK, safeguarding energy bills for British families and providing a homegrown fuel for our economy that, for domestic gas production, has around one-quarter the carbon footprint of imported liquified natural gas.
“Our next steps to develop carbon capture and storage, in Scotland and the Humber, will also help to build a thriving new industry for our North Sea that could support as many as 50,000 jobs, as we deliver on our priority of growing the economy.”
The Prime Minister has also tasked the relevant Government departments and regulators to work collaboratively and report back by the end of the year on how we can make the best use of our offshore resources in a truly integrated way as we unlock CCUS and hydrogen opportunities in the North Sea.
A call for evidence has also been launched by Government today, seeking views on the evolving context for taxes for the oil and gas sector to design a long-term fiscal regime which delivers predictability and certainty, supports investment, protects jobs and the country’s energy security.
CAMPAIGNERS FURY OVER NEW LICENSES
‘Rishi Sunak is gleefully encouraging the arsonists to go and put more fuel on the fire‘
Climate campaigners are furious that the Prime Minister is ‘doing the bidding’ of the oil industry after he re-affirmed that the UK Government will issue over 100 new licences for oil and gas exploration this Autumn.
Rishi Sunak also said that the Acorn project was chosen as the third of four carbon capture and storage clusters in the UK. Climate campaigners regard carbon capture and storage (CCS) as an attempt to ‘greenwash’ the oil industry and pointed to the long history of failure of the technology.
Campaigners say that instead of giving more public money to oil firms it should be invested in climate solution that work today and can improve people’s lives such as public transport and home insulation.
Friends of the Earth Scotland head of campaign Mary Church said: “Burning oil and gas is driving extreme weather and killing people on every continent yet Rishi Sunak is gleefully encouraging the arsonists to go and put more fuel on the fire.”
“By ignoring the huge harm caused by fossil fuel company greed and doing bidding of the industry, the UK Government is blatantly in denial about climate breakdown.”
“By committing to future licensing rounds on the same day, it’s clear to see that carbon capture is little more than a greenwashing tactic by big oil to try and keep their climate-wrecking industry in business.”
“CCS has a long history of over-promising and under-delivering yet both the Scottish and UK Governments have fallen for the snake oil salesmen rather than face reality that the only solution to the climate crisis is a fast and fair phase out of oil and gas.
“Funding for the Acorn project is yet another massive public subsidy to oil companies like Shell who have been making billions in profits, while ordinary people are struggling to pay the bills.
“Instead of handing more money to polluters, it is time to redirect that investment to climate solutions that we know can deliver emissions cuts and improve peoples’ lives today – such as improving public transport and insulating people’s homes to help with energy bills.”
Commenting on the UK Government’s citation of analysis showing domestic gas production has a lower carbon footprint than imported gas, Ms Church continued: “It’s pure spin to try to sell more climate wrecking extraction as lower carbon when every nation needs to phase fossil fuels out with rich nations like the UK going first and fastest.
“What’s more, the Prime Minister is comparing apples and pears as most of what’s left in the North Sea is heavy oil, that we don’t even use domestically, not gas, so it has to be exported anyway.”
Unsurprisingly, ‘stakeholder’ comments have been overwhelmingly positive:
David Whitehouse, CEO Offshore Energies UK said: “Domestic production is the best pathway to net zero and the UK Government’s commitment to licences is a welcome boost for energy security and jobs.
“Oil and gas fields decline naturally over time. The UK needs the churn of new licences to manage production decline inline with the maturing basin. There are currently 283 active oil and gas fields in the North Sea, by 2030 around 180 of those will have ceased production due to natural decline. If we do not replace maturing oil and gas fields with new ones, the rate of production will decline much faster than we can replace them with low carbon alternatives.
“Developing our new carbon capture industry and its high-value jobs needs significant investment from our energy producing companies. This means that the bedrock to success and delivering growth in the economy can only be collaboration between private and public capital.
“The UK’s skilled offshore workforce, its engineering expertise and its geology have given our nation a unique opportunity to lead the way in building a net zero world.”
Tom Glover, RWE UK, Country Chair said: “RWE is delighted that Viking CCS has been awarded Track 2 status for the Government’s Cluster Sequencing Process.
“RWE is a long-term cluster partner of Viking CCS and is developing two projects that could use this facility, providing firm, secure and flexible low carbon power generation to support our transition to a net zero economy.”
Will Gardiner, Drax Group CEO, said: “We welcome the Government’s decision to designate Viking as a Track 2 carbon capture utilisation and storage cluster (CCUS). Progressing a CO2 transport and storage network in the Humber represents a significant step toward helping the region meet its Net Zero ambitions and ensuring that it remains a source of high-skilled jobs and energy security for decades to come.
“The announcement shows the importance of CCUS to the Humber and, along with the East Coast Cluster, creates an additional pathway to support our plans for bioenergy with carbon capture and storage (BECCS) at Drax Power Station.
“We are currently engaged in formal discussions with the UK Government on this project and hope to invest billions in its development and deploy this critical, carbon removals technology by 2030.”
Dr Nick Cooper, CEO of Acorn lead developer Storegga, said: “We are thrilled that the Acorn Project has advanced directly into Track-2. Acorn has been progressed by the development partners as the Track-1 reserve since late 2021 and is ready to move promptly to support the decarbonisation of Scotland and the wider UK.
“Today’s news is a defining milestone for us, and the Scottish Cluster. Acorn will be a major contributor towards meeting the UK and Scotland’s carbon reduction targets, able to serve emitters connected by pipeline and ship.
“As Lead Developer, Storegga thanks Acorn partners and Scottish Cluster participants for their support and we look forward to working with Government to deliver the multiple benefits of creating and future-proofing jobs, bringing inward economic investment, developing green-tech industries and, crucially helping decarbonise Scotland and the UK.”
Harbour Energy’s Executive Vice President of Net Zero and CCS Steve Cox said: The successful award of Track 2 status to Harbour’s Viking CCS project in the Humber as well as Acorn in northeast Scotland is another demonstration of how we are well positioned to use our existing skills and infrastructure to help develop the burgeoning CCS industry in the UK.
“More widely, the announcement today shows the key role the North Sea oil and gas sector will play in helping to deliver the UK’s carbon capture goals.”
Ruth Herbert, Chief Executive at the CCSA, said: “We are pleased to see the UK Government pushing ahead with its CCUS deployment programme and selecting the next two CCUS clusters, as time is running out to meet 2030 targets.
“This CO2 infrastructure is critical to safeguarding the UK’s supply chain security, enabling local industries to continue to thrive whilst reducing their emissions as we transition to a net zero economy.
“It is therefore vital that the Government urgently sets out clarity on the process and timeline for selecting carbon capture sites within these ‘Track-2’ clusters and within the previously announced Track-1 cluster expansion.
Billions of pounds of investment is waiting to be deployed to decarbonise these industrial regions, but firm plans are required to secure it.
“There are a number of other clusters under development across the country, which is why last year we asked government for visibility of the longer-term CCUS deployment plan.
“Collectively, CCUS clusters could protect 77,000 current jobs and create a further 70,000 jobs across the UK. Government’s forthcoming vision for the UK CCUS sector needs to be published as soon as possible, to avoid investment flight in those regions that have not been selected today.”
Simon Roddy, Senior Vice President of Shell UK‘s Upstream business, said: “This is an important step forward for one of the UK’s leading CCS clusters. The Acorn Project is a central part of plans to decarbonise North Sea operations, and to store emissions from other parts of Scottish industry.
“As Technical Developer, we bring Shell’s global experience of CCS and the delivery of major projects. T
“o stimulate investment in this and other CCS clusters, continued co-operation with governments will be key to finding the most innovative approaches and business models to allow CCS to reach the scale needed to help the UK achieve net zero.”
Alistair Phillips-Davies, Chief Executive of SSE, said: “Carbon capture will play a critical role not only in decarbonising the UK’s power system but also in unlocking economic growth and boosting our energy security, and today’s announcement marks a major step forward in its deployment.
“We know how important it is that the north-east of Scotland and Humber are decarbonised and the decision to support the Scottish Cluster and Viking Cluster shows that there is commitment to doing so.
“Time remains of the essence. Now, we must move quickly to deploy the transport and storage infrastructure which will underpin the rollout of CCS across the chosen clusters. Doing so will allow crucial low-carbon projects – such as our carbon capture project at Peterhead – to be brought forward, supporting the energy transition while providing good, green jobs and enhancing regional economies.
“The UK has a real opportunity to lead the world on carbon capture if we can accelerate progress and today’s announcement provides welcome impetus.”
Environmental campaigners have said that Keir Starmer’s speech today must set out how his party will deliver a just transition plan for workers and communities currently dependent on the energy industry for their livelihoods.
In a speech in Edinburgh, the UK opposition leader is expected to give details of Labour’s plan for the energy transition, and confirm its policy of no new oil and gas licences, and opposition to the Cambo and Rosebank projects, in a bid to tackle climate breakdown.
Campaigners are calling on the Labour leader to focus on the blueprint for a just energy transition created by offshore oil and gas workers and backed by key trade unions including:
• Clear accessible pathways out of high carbon jobs, and a training regime for safety not profit • Investment in domestic manufacturing and assembly of renewables • Ensuring safety, job security and fair pay across the energy industry . • Sharing the benefits of our energy system fairly, through public ownership, reorganising the tax system for public good and targeted public investment.
The demands, published by Friends of the Earth Scotland and Platform earlier this year, were developed in consultation with oil and gas workers and backed by over 1000 workers surveyed.
Campaigners highlighted in particular that public ownership must be at the heart of Labour’s just transition strategy, to enable the prioritisation of public good over private profit.
The Shadow Chancellor Rachel Reeves has previously pledged to reach £28bn per year of investment in tackling climate change if Labour leads the next UK Government.
Friends of the Earth Scotland’s head of campaigns Mary Church said: ““Keir Starmer is right to say no to new oil and gas developments to fight climate breakdown. This is an important step in the right direction towards setting an end date for all fossil fuels in our energy system, which is needed to provide certainty for the sector, making it clear that investing in renewables is the only choice for our energy future, and enabling proper workforce planning.
“The Labour leader needs to be clear about the steps his party will take to prioritise supporting affected workers and communities through the transition. With the right planning and investment there is potential for three jobs for every one job at risk from a managed phase out of oil and gas, in line with global climate goals. But this will only happen with government leadership and investment.
“Oil and gas workers are ready to lead a rapid and fair transition away from fossil fuels, and have a blueprint to create an energy industry that protects workers, communities and the climate. All that is required is the political will to get behind their demands.
Challenging the Labour leader to go further on his commitment to a Great British Energy company, she continued: “With the greedy energy firms having demonstrably failed to deliver on climate action, while raking in profits as people struggle to pay their bills, public ownership clearly must be at the heart of Labour’s just transition strategy.
“Public ownership means that public good objectives like keeping peoples’ homes warm and bills affordable, and reducing environmental harm, can be prioritised over profit.
“The investment promised if Labour forms the next UK Government is a great start and should be used to nationalise or take stakes in strategic energy infrastructure, such as the grid and ports, and to invest in regional publicly owned renewable generation companies.
“But more is needed, and reorganising the tax system for public good will be key to raising the finance needed.”
Climate campaigners have said that BP reporting a tripling of quarterly profits shows that the UK energy system is ‘fundamentally broken.’ The oil giant today announced profits of £6.9 billion ($8.45 billion) in just 3 months.
Meanwhile, energy consultants have forecast that energy bills could reach over £3,600 per household.
BP have said they will use these record profits to pay out to their shareholders as well as buy back shares in the company from investors. Share buybacks are a way of increasing the value of shares for shareholders.
BP continues to invest in fossil fuel projects such as the Murlach oil field which will further ‘lock us into’ this broken energy system for decades, increasing company profits even further at the expense of people and the planet, campaigners say.
Climate scientists and energy experts have warned that we cannot afford any more investment into fossil fuel extraction if we are to limit dangerous climate warming to 1.5ºC.
Recent research revealed the oil and gas industry has made over $52 trillion in profit over the last 50 years.
Friends of the Earth Scotland’s Oil and Gas Campaigner Freya Aitchison said: “This announcement of yet another obscene profit for BP is a clear sign that our energy system is fundamentally broken.
“Rising energy prices are a key driver of the cost of living crisis which is plunging millions of people in the UK into fuel poverty, yet bosses and shareholders at BP are getting even richer by exploiting one of our most basic needs.”
“BP is also worsening climate breakdown and extreme weather by continuing to invest and lock us into new oil and gas projects for decades to come. Instead of allowing these companies to continue causing social and environmental devastation to boost their profits, we need to overhaul our energy system to rapidly phase out oil and gas.
“A fair and fast transition to renewables must ensure that everyone has access to affordable and clean renewable energy.”
PM hails £10 billion Qatari ‘vote of confidence’ in the UK
The PM hosted the Amir of Qatar yesterday to develop our historic partnership and agree new joint work on trade, energy and defence
Strategic Investment Partnership will see Qatar invest up to £10 billion in key industries across the UK, creating jobs and growth
UK and Qatar agreed to work together improve the stability of energy supply chains and support security at the 2022 World Cup
It was all smiles when The Prime Minister welcomed the Amir of Qatar, Sheikh Tamim bin Hamad al Thani, to Downing Street yesterday for discussions on driving economic growth and addressing global challenges together.
The meeting was surely a welcome distraction from the latest Partygate revelations and the imminent publication of the Sue Gray report into Downing Street lockdown parties, which is expected to be extremely critical of Boris Johnson’s conduct.
The UK and Qatar signed a new Strategic Investment Partnership (SIP) which will see Qatar invest up to £10 billion over the next five years in key sectors of the UK economy, including fintech, zero emissions vehicles, life sciences and cyber security. The investment is expected to create high-quality jobs in new industries across the country.
The Prime Minister and the Amir also had a wide-ranging discussion on geopolitical issues. They were united in their condemnation of Russia’s aggression in Ukraine and discussed issues of regional security, including relations with Iran.
Prime Minister Boris Johnson said: “Today’s announcement of up to £10bn in new investment from our Qatari friends is another vote of confidence in the UK’s brilliant businesses and cutting-edge industry.
“The new UK-Qatar Strategic Investment Partnership will create quality job opportunities across the country in key sectors, delivering on our vision of economic growth through trade and investment.
“Qatar is a valued partner for the UK, supported by Sheikh Tamim bin Hamad’s leadership. We had a rich discussion on the issues that matter to both of our countries, including boosting the economy, ensuring regional stability and improving energy security following Russia’s appalling invasion of Ukraine.”
UK-Qatar trade was worth £4.8 billion last year and Qatari investment in the UK economy is already estimated to be worth over £40 billion, supporting jobs and growth across the country.
Minister for Investment Lord Grimstone said: “It is excellent news that Qatar is targeting up to £10 billion investment into the UK through our new Strategic Investment Partnership.
“Not only will it boost local economies and support jobs, but it supports our green economy and decarbonisation – crucial in meeting our Net Zero targets. It also strengthens our relationship with Qatar ahead of our UK-Gulf Cooperation Council trade negotiations.”
Business Secretary Kwasi Kwarteng also signed an MoU on energy cooperation with Qatar’s Minister of State for Energy Affairs at Downing Street. Qatar is a major energy supplier for the UK, providing 40% of our liquefied natural gas – the new MoU commits us to work together to boost innovation and collaboration, supporting the security of global energy supplies.
UK Secretary of State for Business and Energy, Kwasi Kwarteng, said: “I am delighted to further the UK’s energy cooperation with the State of Qatar as we work to stabilise international energy markets and boost energy security in the context of Russia’s illegal invasion of Ukraine.
“Qatar is already a valued trading partner, recently investing in the future of British low-carbon nuclear technology through the Rolls Royce consortium developing small modular reactors. Today’s meeting will deepen our relationship even further, reinforcing the UK’s energy security and delivering cleaner and affordable energy in the years ahead.”
The Prime Minister and Amir discussed the upcoming 2022 Qatar World Cup this winter, and the UK committed significant new military and counter-terrorism support for the safe running of the event.
A joint UK-Qatar Typhoon Squadron will provide additional air security, and the Ministry of Defence with advanced venue search training and operational planning support.
The Prime Minister also confirmed that the UK will ensure Qatari nationals can access the UK’s new Electronic Travel Authorisation system from early 2023, facilitating easier travel for business visitors and tourists.
