Prime Minister visits North East Scotland, highlighting the central role it will play in defending the UK against disrupted global energy supplies.
There he will also meet with key figures in the energy sector and will visit critical infrastructure projects which will help grow the economy, reach Net Zero, and deliver the next generation of highly skilled jobs for young people in the region.
The Prime Minister will today confirm that Scotland will continue to be at the forefront of UK Government plans to strengthen the UK’s long-term energy security.
During a visit to the North East of Scotland, the Prime Minister will highlight the crucial role that the region will play in enhancing and delivering on the UK Government’s commitment to reaching Net Zero in 2050 and enhancing long term energy security for generations to come.
The UK is leading international efforts by setting ambitious net zero commitments, ramping up the transition to clean energy, reducing total greenhouse gas emissions by 32% since 2010, whilst bringing down energy bills and supporting households.
It is expected that the UK Government and energy authorities will go further than before in announcing continued decisive action to:
Boost the capability of the North Sea industry to transition towards Net Zero;
Strengthen the foundations of the UK’s future energy mix;
And create the next generation of highly skilled green jobs.
The Prime Minister will also meet with key energy industry figures and companies at the forefront of delivering the UK’s energy needs, as well as the next generation of highly skilled people who are working on the projects of tomorrow.
The UK Government says the package ‘will also underpin that Scotland remains a cornerstone of government plans for an energy-independent UK, as well demonstrating what can be achieved due to the strength and scale of UK collective action, in defending the public against global energy supplies which have been disrupted and weaponised by Putin’.
Environmental campaigners have condemned the plans, however. Friends of the Earth Scotland regards carbon capture and storage (CCS) as an attempt to ‘greenwash’ the oil industry and pointed to the long history of failure of the technology.
They say that instead of giving more public money to oil firms it should be invested in climate solutions that work today and can improve people’s lives such as public transport and home insulation.
Shell is a key partner in the Acorn project. Last week the fossil fuel giant announced profits of £3.9billion for just the last 3 months, on top of the £32.2 billion profit in 2022. Despite this vast wealth, the Acorn project appears to be totally reliant on further public subsidy to progress.
Friends of the Earth Scotland head of campaign Mary Church said: “Carbon capture is a greenwashing tactic by profit obsessed fossil fuel companies to try and keep their climate-wrecking industry in business.
“CCS has a long history of over-promising and under-delivering yet politicians have fallen for the spin 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 would be yet another massive public subsidy to oil companies 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.”
‘we are sending a strong signal to Putin’s Russia that the days of his dominance over global power markets are well and truly over’ – Grant Shapps
LionLink power line between UK and Netherlands will deliver enough electricity to power more homes than Manchester and Birmingham combined
Agreement made as Grant Shapps leads delegation of leading businesses to key North Sea Summit
Part of renewed Government drive to work with business to help grow the economy
The world’s largest multi-use electricity power line will be built under the North Sea, boosting UK energy supplies with enough to power 1.8 million homes – more than Birmingham and Manchester combined.
The new LionLink will connect the UK and the Netherlands with offshore wind farms, providing clean affordable and secure energy to Britain which will help cut household bills and drive Putin’s Russia further out of the energy market.
The cross-border electricity line will be only the second of its kind in the world, with the first having been built by Germany and Denmark. However, it will be able to carry more than four times the amount of electricity as its predecessor – making it the largest of its kind in terms of capacity anywhere in the world.
While normal interconnectors only connect two countries, the multipurpose LionLink will join the UK and Netherlands to each other as well as simultaneously with offshore wind farms at the heart of the North Sea.
The government is announcing the innovative project between the UK and the Netherlands as Energy Security Secretary Grant Shapps leads a British business delegation to the crucial North Sea Summit in Belgium today, aiming to boost our collective energy security through new renewable energy and interconnector projects.
This is part of the government’s efforts to work with business to grow the economy, one of the Prime Minister’s five priorities. Boosting clean energy not only helps create better paid jobs across the country but also strengthens economic security by reducing reliance on foreign gas supplies.
The summit will see nine countries meet in Ostend to agree ambitions for building future offshore wind farms. While there, the Energy Security Secretary is also expected to sign a historic agreement with Denmark to boost trade in cheaper, cleaner energy.
Energy Security Secretary Grant Shapps said: “Today’s historic deal with the Netherlands connects our two countries together through this exciting feat of innovation and engineering – the largest of its kind in the world which will provide enough electricity for more homes than in Manchester and Birmingham combined.
“Together with the strong ties we have with our northern European neighbours united today at the North Sea Summit, we are bolstering our energy security and sending a strong signal to Putin’s Russia that the days of his dominance over global power markets are well and truly over.
“I’m proud to have the best of UK energy firms and organisations with me, flying the flag for British business and demonstrating our world-leading expertise in cleaner, cheaper and secure renewable technologies – helping deliver on one of our five priorities to grow the economy.”
Ben Wilson, President National Grid Ventures, said: “Connecting wind farms to multiple markets simultaneously is a game changer for energy infrastructure and brings us one step closer to realising the enormous green energy potential of the North Sea.
“Not only can we deploy every spare electron where it is needed most, we can help to reduce the impact of infrastructure on coastal communities.
“We now need the right political, legal and regulatory framework to make it happen and establish a mutually beneficial North Sea grid to deliver a cleaner, fairer, more secure and more affordable energy future for British and European consumers.”
The countries attending today’s summit alongside the UK are Belgium, Denmark, France, Germany, Ireland, Luxembourg, Norway and the Netherlands
The new LionLink will carry 1.8GW of electricity, compared to Germany and Denmark’s Kassø-Frøslev (Kriegers Flag), which carries 0.4GW. It will be developed by National Grid Ventures and TenneT and will be operational by the early 2030s.
This builds on the 8.4GW interconnector capacity that the UK has – and LionLink alone will increase that by up to a fifth, meaning more clean and affordable power for UK homes and businesses.
This increased interconnectivity also means LionLink will be good both for the UK’s coastal communities and the environment by reducing the need for further onshore construction and visible infrastructure, as well as lessening the impact on the North Sea’s wildlife.
Britain’s world-class innovation, knowledge and skills within the North Sea energy sector is expected to bring £20 billion a year of investment to the UK’s coastal regions and create 40,000 skilled green jobs to Britain.
Manon van Beek, CEO of TenneT, said: “It is our conviction that offshore hubs configured in a meshed DC grid must form the backbone of the North Sea powerhouse.
“This is a view that is increasingly shared, and for us, it is more than a vision of the future. In fact, we are already doing it by kicking off this ground-breaking LionLink project right now. It is a first step and a great opportunity to learn as the offshore grid takes shape.”
Minister Rob Jetten, Climate & Energy for the Netherlands: “With the North Sea becoming the largest supplier of green electricity for the Netherlands and large parts of Europe, we are ready to expand the interconnection between the two countries. LionLink provides close to 2 gigawatts of electricity to both countries, enough to power 2 million households.
“This new connection further boosts energy security and energy independence in Europe. Close collaboration on offshore wind energy and interconnection amongst the North Sea countries is imperative.
“So in case there is a surplus of wind generated electricity, it can be shared instantly to locations with a shortage of power, and vice versa.”
The Energy Security Secretary is also expected to sign a Memorandum of Understanding between the UK and Denmark today, which will ensure further collaboration on the transition from fossil fuels to renewable technologies –offshore wind, especially.
CHANCELLOR’S “reset” to clean up the UK’s domestic energy supply and secure long term energy security, while delivering up to 50,000 highly skilled jobs is expected next week
£20 billion will transform carbon capture in Britain, helping create up to 50,000 highly skilled jobs.
Chancellor to confirm the next steps for Great British Nuclear as competition to deliver small modular nuclear reactors opens this year.
Plan will set the path for the UK’s clean energy supply and secure the UK’s long term energy security and help deliver one of the government’s five promises to grow our economy.
At next Wednesday’s Spring Budget (15th March) the Chancellor, Jeremy Hunt, will set out an unprecedented investment in domestic carbon capture and low carbon energy. Recognising the urgency of the UK’s clean energy revolution, he will commit to spades in the ground on these projects from next year.
No one country has yet captured the carbon capture market. The UK has enough carbon capture capacity to store over a century and half of national annual CO2 emissions, making it one of the most attractive carbon capture markets on earth, creating high-paid jobs of the future across the UK and growing our economy through new cutting-edge industries. Carbon capture will support the UK’s industrial transition to cleaner, greener processes and technology.
An unprecedented £20 billion in investment over the next 20 years will drive forward projects that aim to store 20-30 million tonnes of CO2 a year by 2030, equal to the emissions from 10-15 million cars helping us meet our carbon capture targets as part of our national net zero targets.
The Chancellor will also announce plans to boost nuclear power generation through Great British Nuclear, launching a competition for this country’s first Small Modular Nuclear Reactors, revolutionising how nuclear projects are delivered in the UK.
Chancellor of the Exchequer, Jeremy Hunt said: “Without Government support, the average household energy bill would have hit almost £4,300 this year, which is why we stepped in to save a typical household £1,300 on their energy bills this winter.
“We don’t want to see high bills like this again, it’s time for a clean energy reset. That is why we are fully committing to nuclear power in the UK, backing a new generation of small modular reactors, and investing tens of billions in clean energy through carbon capture.
“This plan will help drive energy bills down for households across the country and improve our energy security whilst delivering on one of our five promises to grow the economy.”
Energy Security Secretary, Grant Shapps said: “Putin’s illegal invasion of Ukraine has demonstrated to the world the vital importance of increasing our energy security and independence – powering more of Britain from Britain and shielding ourselves from the volatile fossil fuels market.
“Already a global leader in offshore wind power, we now want to do the same for the UK’s nuclear and carbon capture industries, which in turn will help cut the wholesale electricity prices to amongst the lowest in Europe.
“Today’s funding will play an integral role in delivering that, helping us further towards our net zero targets and creating green jobs across the country.”
Small Modular Reactors are emerging technology, and no country has yet to deploy one. To ensure the UK steals the march, the Small Nuclear Reactors competition is expected to attract the best designs from both domestic and international manufacturers with winners announced rapidly. The government will also match a proportion of private investment as part of this to ensure designs are ready to be deployed as soon as possible in the UK.
The government is already investing £210 million into the Rolls-Royce SMR project, matched by private sector funding. Rolls’ Royce reactor design is currently being assessed by safety regulator, the Office for Nuclear Regulation.
Great British Nuclear will streamline and coordinate the delivery of new nuclear power plants to meet the country’s ambition of up to 24 Gigawatts of nuclear power by 2050.
The government body will select sites for potential nuclear projects, removing costs, uncertainty, and bureaucratic barriers for manufacturers as they develop their proposals. To support future sites for nuclear development, the Government will also be consulting on a new approach to nuclear site selection later this year.
There will also be a laser focus on how to attract more investment into the sector, with the Chancellor confirming that nuclear power generation will be classed as “environmentally sustainable” under the green taxonomy regime, subject to consultation, encouraging significant private investment. Last year, the Chancellor confirmed reforms to EU-derived Solvency II regulation, which will unlock £100bn of private investment into infrastructure and clean energy over a decade.
We’ve already invested a historic £700 million stake in Sizewell C – our first investment in a nuclear project for 35 years – to provide reliable, low-carbon, power to the equivalent of 6 million homes for over 50 years. This will shore up UK energy security and create 10,000 skilled jobs, while we also continue to bring Hinkley Point C to completion, the first new nuclear power station in a generation.
We have already committed £1 billion to develop four CCUS hubs in the UK by 2030, but with today’s funding, we are providing industry with the certainty required to deploy CCUS at pace and at scale.
This is all part of our plans to transform our homegrown energy supply, investing in renewables and nuclear power, and maximising North Sea oil and gas production as we transition to net zero. All of which crucially brings skilled jobs, prosperity, and growth as we build a cleaner, greener, more secure economy.
Stakeholder reaction:
Andrew Storer, Chief Executive Officer, Nuclear Advanced Manufacturing Research Centre said: “I strongly welcome today’s announcement and the government’s commitment to establish Great British Nuclear to drive delivery of a programme of new nuclear power.
“Business needs the confidence that this will bring to invest in building industrial capability across the UK. The Nuclear AMRC will ensure that companies have access to the innovative manufacturing capability, resilient supply chains and skills needed to ensure the timely and cost-effective delivery of new nuclear power.
“This is an essential part of our future energy system and a great opportunity to drive jobs, skills development and growth across the UK as shown in our leading role in establishing the recently launched Rolls-Royce Nuclear Skills Academy. Our facilities in Rotherham and Warrington and a new technical facility in Derby will enable us to bring advanced manufacturing capability to support the Great British Nuclear mission in the heart of UK industry”.
Tom Greatrex, Chief Executive, the Nuclear Industry Association, said: “This is a huge step forward for UK energy security and UK jobs. Green labelling nuclear will drive crucial investment into projects large and small. Setting up GBN with the powers to select sites for projects will make nuclear deployment more efficient and give the supply chain a clear pipeline to work from.
“The SMR competition should put us back in the global race and create opportunities for UK technology and others to bring jobs and investment to the UK and win export orders in a massive market worldwide.
“We look forward to seeing details of funding for GBN and of the SMR competition in the Budget, as well as confirmation of our ambitions for fleet deployment of large and small scale reactors to make us a clean energy powerhouse of the 21st century.
“More nuclear cuts gas imports, cuts carbon and creates good jobs for communities all across this country.”
Dr Nina Skorupska CBE FEI, Chief Executive of the REA (The Association for Renewable Energy and Clean Technology) said: “Government’s commitment to advancing carbon capture and storage is a long awaited and welcome step forward. It is particularly essential that today’s announcements deliver a route to market for bioenergy with carbon capture and storage, at a range of scales.
“Combining this technology with low carbon bioenergy production, which uses biomass and waste feedstocks, produces real-world carbon removals from the atmosphere that are critical to achieving net zero, after having realised emission reductions.
“This support will help to reaffirm the UK’s global position as leaders in this innovative technology, and see it built at commercial scale. Crucially it will help in attracting new investment, which in turn will lead to thousands of jobs and the growth of the UK’s Green economy.”
