Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 17 January 2024.

Eligible low income households urged to make sure they get £150 in Warm Home Discount before 29 February.

People on low incomes could benefit from a £150 rebate on their energy bills – and are being urged to act now where they need to, so they can get the support before this year’s scheme closes.

The help is available to over 3 million households across Great Britain that are most at risk of fuel poverty, with many receiving the discount automatically. However, some customers in England and Wales have been sent a letter asking them to confirm their details by calling the Warm Home Discount Helpline so they can check their eligibility and get the rebate.

To mark Big Energy Saving Week, Minister for Affordability and Skills Amanda Solloway is today urging any of these households who need to provide more information to call the helpline by 29 February and get the support they are entitled to.

The scheme forms part of measures to keep costs down for families and put more money in their pockets. It targets support to protect those most at risk of fuel poverty this winter, following a significant drop in energy prices since their peak last year and the government delivering on its pledge to halve inflation – which is now at a 2-year low of 3.9%.

Tax cuts announced at the start of the year will also support 27 million people across the UK, meaning a household with 2 average earners will save nearly £1,000 a year.

Minister for Affordability and Skills Amanda Solloway said:

We will always act to support the most vulnerable – and this means making sure those most in need are getting the right support.

Today, I am urging people on low incomes who have been notified about the Warm Home Discount to make sure they act now to get £150 off their energy bill.

Please check your letter and call our helpline before the end of February if you need to provide more information.

The government’s Warm Home Discount offers targeted energy bill support for those most in need. This includes low income pensioners and households in England and Wales with high energy costs.

These customers received a letter at the end of last year explaining the discount and instructions on any action they may need to take.

For the vast majority of these customers, the discount is automatically applied to bills between October 2023 and March 2024, or is available as a top-up voucher for those with a prepayment meter.

However, some people in England and Wales who received a letter and could qualify for the support have been asked ring the government helpline number provided in their letter to confirm their details. Customers can also find out more on the government’s Warm Home Discount gov.uk page and use the online eligibility checker to see if they qualify, or call the general Warm Home Discount helpline on 0800 030 9322.

In Scotland, customers on low incomes who have not received a letter may still be eligible and should apply via a different route, by contacting their energy supplier as soon as possible.

The support comes on top of wider action to protect vulnerable households, including a £900 payment for those on means-tested benefits, £300 for pensioner households and an extra £150 available for those on disability benefits.

The government has also invested over £2 billion into the Household Support Fund over the last 2 years, increased the Local Housing Allowance Rate so £1.6 million private renters on Housing Benefit or Universal Credit gain an average of nearly £800 a year and £600 in tax-free cash for pensioner households to help with energy bills through Winter Fuel Payments.

Cold Weather Payments have also been triggered to help households receiving certain benefits to stay warm this winter. The scheme – which runs until March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.

Anyone can access advice on how to reduce energy costs and heat their home for less via the government’s Help for Households website. This includes energy saving tips as part of the It All Adds Up campaign, which helped British households an estimated £120 million on their energy bills last winter.

The press release issued by the Department for Energy Security and Net Zero on 16 January 2024.

Consultation launches on new Pumpwatch scheme that will make it easier for drivers to shop around for the cheapest fuel.

Millions of drivers will be able to get the latest petrol station prices at the click of a button, as the government sets out next steps to bring fair prices back to the pumps and transform how the UK shops for its fuel.

Consumers, retailers, and other organisations are today (16 January), being asked for views on the government’s proposals for the new Pumpwatch scheme which would see all fuel stations across the country legally required to share real-time price information with an organisation to be appointed by the government.

Under the new proposals, forecourts across the country will be legally required to share live information on their pump prices within 30 minutes of any change in price, which could save drivers 3p per litre on fuel by helping them find the best deal at the pump.

This freely available data will enable tech companies to develop new ways for the UK’s 41.2 million drivers to search for the cheapest fuel while on-the-go – via everyday mobile apps, online mapping platforms, journey planning tools, price comparison websites and in-car devices. A similar statewide scheme in Queensland, Australia saw drivers save on average $93 (£48) per year, by making it easier for them to shop around for fuel.

Forcing retailers to be transparent about how much they are charging and giving drivers access to price comparison technology – already widely used by customers when booking flights or buying insurance, for example – will help drive down prices by reigniting competition and empowering drivers to find the best deals.

The government has acted after some fuel retailers were found to be overcharging customers, and already there are signs that fairer deals are returning to forecourts. Since these interventions, fuel prices have fallen by an average of around 2p per litre every week between 13 November and 25 December, bringing petrol prices down to a level not seen since October 2021.

This comes as the government delivers its target to halve inflation – now at its lowest rate in 2 years at 3.9%, with fuel prices the main factor behind this slowdown.

It also comes on top of the government’s temporary extension to the 5p fuel duty cut announced last year, which has saved the average driver £200 over 2 years.

Energy Security Secretary Claire Coutinho said:

Our work on competition and transparency is working. Drivers are now paying the lowest average price at the pump for 2 years.

We are forcing retailers to share live information on their prices within 30 minutes of any change in price, helping drivers to find the best deal at the pump.

This will put motorists back in the driving seat and bring much-needed competition back to the forecourts.

Twelve of the biggest retailers, including all 4 fuel-selling supermarkets, have already signed up to an interim voluntary scheme run by the Competition and Markets Authority (CMA) to share their daily prices – with some news outlets and websites using this data to offer price comparisons.

Last year, a report by the CMA revealed some retailers had failed to pass on savings in oil prices – charging drivers 6p more per litre for fuel, which amounted to £900 million in extra costs in 2022 alone.

At the end of 2023, the government appointed the CMA as the body responsible for monitoring the road fuel market, to increase transparency and competition in fuel pricing. The watchdog will also shine a light on any attempt from retailers to overcharge drivers, advising government on any further action required to make competition work well.

Energy Security Secretary Claire Coutinho previously warned retailers against any attempt to hike up prices.

Minister for Energy Affordability and Skills Amanda Solloway said:

We will always act to help keep costs down and ensure hardworking people are getting a fair deal.

Our plans are laying the foundations for new fuel finder tools, making it easy for drivers to find the cheapest deals.

I’m pleased that following government action, many retailers are already taking steps to help bring back competitive prices to the pumps.

Recent government statistics show that road fuel prices were around 5p per litre lower on 25 December compared to the start of the month. This continued a decline in prices, which decreased by an average of 2.1p per litre per week between 13 November and 25 December. Over the 4 weeks between 9 October and 6 November, petrol pump prices fell by 2.7p per litre. Prices then fell by 4.4p per litre over the 2 weeks between 13 and 27 November.

The consultation launched today also covers some elements of the CMA’s new role in monitoring the road fuel market. Industry have been asked for their views on several areas, including the topics the CMA will focus on, the frequency of reporting, and support to help businesses with the CMA’s information requests.

The government is also backing consumers through new legislation under Digital Markets, Competition and Consumers Bill that will deliver on a manifesto commitment to tackle consumer rip-offs and bad business practices, including fake reviews and subscription traps. The Bill introduces new powers for the CMA to take action against bad business practices more quickly, without needing lengthy court action and with penalties for those breaking consumer law.

RAC fuel spokesman Simon Williams said:

This is a really important day as it should pave the way for fairer fuel pricing for everyone who drives.

Sadly, there have been far too many occasions where drivers have lost out at the pumps when wholesale prices have fallen significantly and those reductions haven’t been passed on quickly enough or fully enough by retailers.

We badly need to see competition in the wider market match that of Northern Ireland where fuel prices are consistently 5p cheaper.

Edmund King OBE, AA president, said:

The AA commends the government for addressing the issue of unfair pump prices that we have been raising for some time. The brazen price disparity of sometimes 10p a litre or more between neighbouring towns had to end. Pumping up profits by hanging on to the savings from lower fuel costs while consumers, businesses and inflation were denied the relief was quite simply unforgivable.

The government’s proposal should stimulate fairer pricing through free market competition and takes advantage of latest information technology. It gives leeway to fuel retailers to price according to their circumstances but, by directing motoring consumers to where they can get their fuel at a better price, keeps competitive pressure on the trade.

Notes to editors

The CMA published its interim road fuel monitoring update on 9 November . This was followed by Energy Security Secretary’s Claire Coutinho warning to retailers against any attempt to hike up prices at the pump. The AA recently reported on trends showing a recent drop in fuel prices.

Read and respond to the consultation on the open data scheme and ongoing monitoring function for road fuel prices.

The impact assessment published today alongside the open data scheme consultation shows that the open data scheme could help deliver a 3p per litre saving on petrol and diesel prices for consumers.

Additional information on the 12 fuel retailers to who have signed up to share their daily pricing information, as part of the CMA’s voluntary data scheme.

The press release issued by the Department for Energy Security and Net Zero on 11 January 2024.

Roadmap sets out how UK will increase nuclear generation by up to 4 times to 24GW by 2050.

The government today outlines plans for the biggest expansion of nuclear power for 70 years to reduce electricity bills, support thousands of jobs and improve UK energy security – including exploring building a major new power station and investing in advanced nuclear fuel production.

In the 2 years since Putin’s illegal invasion of Ukraine, the government has doubled down on security of supply to protect the country from price volatility and hostile foreign regimes and bolster the UK’s energy independence.

The Civil Nuclear Roadmap will give industry certainty of the future direction of the UK’s ambitious nuclear programme, on top of the government’s historic commitment to Sizewell C and world-leading competition to develop small modular reactor (SMR) technology.

The roadmap sets out how the UK will increase generation of this homegrown supply of clean, reliable, and abundant energy by up to 4 times to 24 gigawatts (GW) by 2050 – enough to provide a quarter of the UK’s electricity needs.

The plans include next steps for exploring a GW-scale power plant as big as Sizewell in Suffolk or Hinkley in Somerset, which are capable of powering 6 million homes each.

The government will also invest up to £300 million in UK production of the fuel required to power high-tech new nuclear reactors, known as HALEU, currently only commercially produced in Russia.

As the first country in Europe to launch a HALEU programme, the UK will lead the way from its North West production hub to provide the world with this form of uranium fuel, with the first plant aiming to be operational early in the next decade. This builds on the ambition to return uranium conversion to the Springfields nuclear fuel site, both of which are critical to pushing Putin out of the global market.

An additional £10 million will be provided to develop the skills and sites needed to produce other advanced nuclear fuels in the UK, helping to secure long term domestic nuclear fuel supply and support our allies.

The roadmap also includes a government ambition to secure 3 – 7GW worth of investment decisions every 5 years from 2030 to 2044 on new nuclear projects.

The Prime Minister, Rishi Sunak, said:

Nuclear is the perfect antidote to the energy challenges facing Britain – it’s green, cheaper in the long term and will ensure the UK’s energy security for the long-term.

This is the right long-term decision and is the next step in our commitment to nuclear power, which puts us on course to achieve net zero by 2050 in a measured and sustainable way.

This will ensure our future energy security and create the jobs and skills we need to level up the country and grow our economy.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said:

Strengthening our energy security means that Britain will never again be held to ransom over energy by tyrants like Vladimir Putin. British nuclear, as one of the most reliable, low-carbon sources of energy around, will provide that security.

We’re making the biggest investment in domestic nuclear energy in 70 years. Our £300 million plan to produce advanced nuclear fuel in the UK will supply nuclear plants at home and overseas – further weakening the Kremlin’s grip on global energy markets.

From large gigawatt projects to small modular reactors, the UK’s wider nuclear revival will quadruple our nuclear capacity by 2050 – helping to power Britain from Britain.

Plans to streamline the development of new power stations and introduce smarter regulation could speed up the overall process and, as a result, the delivery of nuclear power in the UK. This includes allowing regulators to assess projects while designs are finalised, and better join-up with overseas regulators assessing the same technology.

Ministers will bring together the brightest and best from the nuclear industry and beyond as part of a ‘hackathon’ event to come up with ideas on how government and industry can accelerate new nuclear projects, while maintaining the highest levels of safety and security.

These plans will help build new supplies of affordable and clean domestic power so the transition to net zero doesn’t mean higher prices, protecting households from global instability.

The government is also today publishing 2 consultations, one on a new approach to siting future nuclear power stations and another on supporting the sector and encouraging private investment to roll out advanced nuclear projects. The proposals will attract investment in the UK nuclear sector by empowering developers to find suitable sites rather than focusing on 8 designated by government. Community engagement will remain critical to any decisions, alongside maintaining robust criteria such as nearby population densities.

Following its launch last year, Great British Nuclear (GBN) will drive the UK’s nuclear ambitions forward, including through the game-changing SMR competition which will soon invite short-listed companies to tender.

Unlike conventional nuclear reactors that are built on site, SMRs are smaller, can be made in factories, and could transform how power stations are built by making construction faster and less expensive. Alongside large gigawatt power stations, SMRs will play a key role in delivering on the expansion of UK nuclear capacity.

As well as powering homes, innovations in the nuclear sector could provide direct heat for industry, energy for green hydrogen production, and medical isotopes for the diagnosis and treatment of cancer.

Analysis by the Nuclear Skills Strategy Group suggests that to reach up to 24GW, the civil and defence nuclear workforce will need to double over the next 20 years – supporting around 80,000 additional skilled jobs across the UK.

The Nuclear Skills Taskforce will shortly set out plans to meet the demand of an industry – already worth £6 billion to the British economy – which is likely to include increasing the numbers of graduates and apprentices and attracting mid-careerists with relevant skills and expertise.

Minister for Nuclear Andrew Bowie said:

The government’s investment in nuclear will ensure the UK remains at the forefront of technological developments.

Our plans will give investors the confidence to back new UK projects, with a simpler process for locating new schemes and clear support for private sector companies developing innovative new technologies.

By meeting a quarter of our electricity demand with nuclear, we will strengthen our energy independence, reduce bills and support jobs across the UK.

The roadmap will also confirm plans for decommissioning to make sure they remain suitable for new nuclear technologies and protect future generations from bearing the costs.

Tom Greatrex, Chief Executive of Nuclear Industry Association, said:

We welcome the publication of the roadmap – the commitment to explore a further large-scale project beyond Sizewell C in parallel with the deployment of SMRs is very welcome. We will need both large and small nuclear at scale and at pace for our energy security and net zero future. Allowing developers to engage with the government about Regulated Asset Base funding models should also make it cheaper to finance projects, cutting costs to the consumer. Decisions on 3-7GW in each 5 year period provide the greater clarity and predictability, which in turn enables supply chain investment and more UK content in the future fleet.

The commitments to maximise our use of regulatory assessments already undertaken overseas will help get innovative reactor designs into construction faster and reduce the duplication in regulatory activity that eats up time for no additional benefit.

Sue Ferns, Senior Deputy General Secretary of Prospect trade union, said:

Commitment to a long-term investment in new nuclear capacity is most welcome.

Nuclear is an essential part of a low carbon, secure energy strategy that should also deliver good, clean jobs at scale. Investment in both GW-scale power plants as well as SMRs is critical to ensuring a nuclear renaissance, as is reducing our exposure to Russian nuclear fuel production.

Prospect looks forward to playing an active role in delivering this mission that is critical to meeting our net zero and energy security goals.

Babcock’s CEO for Nuclear Harry Holt said:

The UK’s Nuclear Roadmap will provide opportunities for the whole civil nuclear sector. Babcock, through our Cavendish Nuclear business, is committed to developing UK capability, jobs and skills and this is a great step in the right direction.

Carol Tansley, Vice President of UK New Build Projects at X-energy, said:

We’re delighted this ambitious roadmap recognises the vital role in the UK energy mix for advanced modular reactors (AMRs).

The announcement of funding for an advanced fuel enrichment facility is also a very welcome demonstration of commitment to deliver the next generation nuclear technologies in the UK.  We look forward to engaging in the forthcoming consultations to create a blueprint for successful deployment.

Gwen Parry-Jones, CEO of Great British Nuclear said:

Since Great British Nuclear started the SMR technical selection process last July, we have moved strongly forward and are on track to complete vendor selection later this year.  Shortly we will invite the six companies we have selected to submit tenders.

The Civil Nuclear Roadmap provides a framework for GBN to help deliver more safe, clean and affordable UK nuclear power to UK consumers.  Together with industry, we will enthusiastically take up the role the government has set out for us in delivering and advising across the UK’s nuclear programme.  We are actively building GBN’s capability to take on the challenge ahead.

Chris O’Shea, Group Chief Executive, Centrica, said:

The UK’s ambitious net zero targets will only be met if we utilise all of the tools at our disposal, including nuclear power generation. Centrica has invested in nuclear power generation for almost 15 years and we know the benefits it can create for customers and the country. We welcome the roadmap set out by the government today as we look to support the UK’s efforts to create a more secure, resilient energy system for the future.

Dr Fiona Rayment OBE FNucI, President of the Nuclear Institute, commented:

I am delighted to see the publishing of the Nuclear Roadmap. It not only continues to provide a strong signal from government on nuclear, but reaffirms the only way to achieve carbon neutrality for energy whilst maintaining both energy and national security is through nuclear as a significant part of the UK energy mix.

Reaching 24GW by 2050 is achievable but challenging and recognising the need to address the skills and capability challenges in enabling this is key. The Nuclear Institute, as the professional membership body for the sector, assists in creating this capability and we are proud to support our nuclear workforce in the years ahead.

Andrew Murdoch, UK Managing Director of Advanced Modular Reactor developer, newcleo, said:

newcleo welcomes today’s announcements by government which offer strong support for our sector and outline a clearer future for nuclear energy policy in the UK, be it big, small or advanced.  We now look forward to participating in the government’s consultations on both siting and the routes to market for advanced technologies ahead of developing our first of a kind advanced modular reactor here in the UK by 2033.

newcleo is ready to invest billions of pounds of private money in the UK and create thousands of high value jobs in local communities with our innovative reactors.  Today’s announcements help to provide the framework in which the industry and government can work together to realise the ambition to deliver 24 GW of much-needed nuclear power by 2050.

The press release issued by the Department for Energy Security and Net Zero on 7 January 2024.

£300 million UK investment to support domestic production of fuel required to power next-generation nuclear reactors.

• First European country to launch high-assay low enriched uranium (HALEU) programme with landmark £300 million investment
• Programme will produce enriched uranium needed for next generation of reactors and provide jobs and investment in North West England
• Investment will end Russia’s reign as the only commercial producer of HALEU

The UK will become the first country in Europe to launch a high-tech HALEU nuclear fuel programme, strengthening supply for new nuclear projects and driving Putin further out of global energy markets.

The landmark £300 million investment is part of plans to help deliver up to 24GW of clean, reliable nuclear power by 2050 – a quarter of the UK’s electricity needs.

The government funding will support domestic production of high-assay low-enriched uranium (HALEU) – the specialist fuel required to power the next generation of nuclear reactors. Most advanced reactors require this fuel that is currently only commercially produced in Russia.

The launch of the HALEU programme will enable the UK to supply the world with specialist nuclear fuel and further isolate Putin’s Russia.

An additional £10 million will also be provided to develop the skills and sites to produce other advanced nuclear fuels in the UK, helping to secure long term domestic nuclear fuel supply and support international allies.

This builds on the UK’s status as a world leader in the production of nuclear fuels, with domestic capability in uranium enrichment and in fuel fabrication in the North-West of England.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said:

We stood up to Putin on oil and gas and financial markets, we won’t let him hold us to ransom on nuclear fuel.

Britain gave the world its first operational nuclear power plant, and now we will be the first nation in Europe outside of Russia to produce advanced nuclear fuel.

This will be critical for energy security at home and abroad and builds on Britain’s historic competitive advantages.

These plans will help build new supplies of affordable and clean domestic power so the transition to net zero doesn’t mean higher prices, protecting households from global instability.

Advanced modular reactors will play an important role in the UK’s nuclear revival as, like small modular reactors, they are smaller, can be made in factories, and could transform how power stations are built by making construction faster and less expensive. Many designs have the potential for a range of applications beyond low-carbon electricity generation, including production of hydrogen or industrial heat.

With the first plant scheduled to be operational in the early 2030s, the funding will boost the North West of England’s nuclear fuel production hub, supporting local industry and jobs while helping to expand our nuclear revival in the UK and overseas – vital to meeting global net zero targets.

This builds on the UK’s work to displace Russia from the global nuclear fuels market, particularly in uranium conversion services, where government and industry are together investing up to £26 million to bring this capability back to the UK by the end of the decade.

At COP28 the UK also restated its commitment to working with G7 nuclear partners to reduce global dependence on Russian fuel.

The press release issued by the Department for Energy Security and Net Zero on 20 December 2023.

Government sets out plans for a new competitive UK carbon capture, usage and storage market by 2035 – delivering new jobs and supporting net zero.

Green boost for the UK economy as Energy Secretary sets out plan to make the UK a global market for Carbon Capture, Usage and Storage.

The plan – named the CCUS Vision – sets out how the UK will transition from early projects backed by government support to becoming a competitive market in this area by 2035, meaning UK companies will compete to build carbon capture facilities and sell their services to the world.

This is expected to boost the economy by £5 billion a year by 2050 – making the UK a pioneer in this technology while meeting its net zero commitments in a reasonable way that eases the financial burden on taxpayers.

Carbon capture works by capturing carbon dioxide (CO2) before it reaches the atmosphere and storing it safely underground – filling the spaces left by oil and gas extraction. The UK holds a strategic advantage compared to other countries thanks to its unique geology, skills and infrastructure as an island nation. It also offers enough space under the North Sea for up to 78 billion tonnes of CO2.

This is the latest step to develop CCUS technologies – which aim to store 20-30 million tonnes of CO2 per year by 2030 and support 50,000 jobs by 2030 – backed by up to £20 billion of investment.

It comes as the Department launches the process for more companies to connect to and expand the HyNet Cluster in the North-West and Wales – delivering further jobs and investment in the region.

Energy Security Secretary Claire Coutinho said:

Thanks to the UK’s geology, skills and infrastructure, we are in a unique position to lead the way on carbon capture technologies.

That is why we’re making one of the biggest funding commitments in Europe on carbon capture that will cut emissions from our atmosphere, while unlocking investment, creating tens of thousands of jobs and growing the UK economy.

Energy Efficiency and Green Finance Minister Lord Callanan said:

We need pragmatic answers to the carbon challenge, and with our infrastructure, skills and geology, the UK is in pole position to take advantage of game-changing carbon capture and storage technology.

Today we’re publishing a blueprint to deliver a world-leading UK carbon capture industry, so that we have a competitive market in this exciting new technology by the middle of the next decade.

Backed by an unprecedented £20 billion investment, this is also a pivotal milestone in our journey to net zero that will drive economic growth, unlock investment and create tens of thousands of jobs in our industrial heartlands.

Ruth Herbert, CEO, Carbon Capture and Storage Association said:

We welcome the CCUS Vision published today, setting out a long-term strategy for the UK’s CCUS industry to be able to store over 50Mt a year by 2035 to support the decarbonisation of domestic industries and take advantage of export opportunities.

It is great to see CO2 transport by ship, road and rail will be enabled from 2025 onwards, which will also support longer-term cross-border CO2 transport solutions.

Hedvig Ljungerud, NSTA Director of Strategy, said:

The energy transition and the path to net zero cannot succeed without carbon storage. As the regulator, we welcome today’s announcement and look forward to supporting this growing industry as it benefits the UK’s economy and the fight against climate change.

The CCUS Vision – the plan to create a competitive CCUS market by 2035 – includes measures to achieve this goal, including:

• moving to a competitive allocation process for carbon capture projects from 2027 to speed up the building of the UK’s CCUS sector
• creating the conditions for projects that cannot transport CO2 by pipeline to enter the market from 2025 onwards, using other forms of transport such as ship, road and rail
• establishing a working group led by industry to identify and adopt solutions to reduce the cost of capturing CO2

Earlier this year, a further 2 carbon capture clusters were announced, bringing the total to four UK carbon capture clusters to support the government’s ambition to decarbonise industry and power – HyNet in North West England, East Coast Cluster in Teesside and the Humber, Acorn in Scotland and Viking in the Humber.

These will build truly integrated energy hubs that make the best use of the UK’s established infrastructure, and play a key role in the country’s measured, pragmatic approach to reaching net zero.

The UK government has also today announced significant progress in delivering on these carbon capture clusters in the UK’s industrial heartlands. This includes:

• agreeing initial commercial terms with the Northern Endurance Partnership (NEP) around Teesside and the Humber, paving the way for expansion of that cluster. The government will now consider the best time to launch an expansion process from 2024 based on an assessment of store readiness in the New Year
• and, having announced the locations of the third and fourth CCUS clusters in the Summer, government is today announcing a faster process to get those clusters set up and suitable capture projects identified

Luciano Vasques, Managing Director, Eni UK said:

We see strong demand from businesses across the UK for CCS so today’s announcement is a welcome step forward. We look forward to providing transportation and storage at HyNet for a wider range of companies in North West England and North Wales, helping them to reduce CO2 emissions, protect local jobs and boosting industrial competitiveness for the region.

Chris Daykin, General Manager, NEP said:

Today’s announcements mark another positive milestone in the development of the East Coast Cluster and the UK CCUS industry.

Agreeing the key commercial principles through the Heads of Terms is a crucial step in the decarbonisation of the North East region and delivering jobs. We look forward to the expansion process launching from 2024 and agree that the selection of projects by HMG should be matched to the available transportation and storage capacity, so that projects and stores are developed at the same pace and equivalent level of maturity.

We thank the UK government for their continued support as we work to complete the final agreements in the coming months, enabling NEP to take Final Investment Decision in September 2024.

The press release issued by the Department for Energy Security and Net Zero on 20 December 2023.

The government announces funding for new charging technologies, which mean families could use their electric vehicle batteries to power their homes and save on bills.

Families could soon save hundreds of pounds on energy bills by using electricity stored in their electric vehicles (EVs) to power home appliances such as fridges and washing machines – thanks to new 2-way charging technologies being supported with government funding.

Households could power their home appliances as a result of the development of bidirectional charging, which enables electricity stored in a vehicle’s battery to flow back into the grid or back into the home and workplaces, which can then be used to power other devices.

This builds on existing smart charging technologies, where EVs can be charged when electricity prices are lower overnight. Families could then use these Vehicle-to-Everything (V2X) technologies to save money on their bills by selling the electricity back to the grid when prices are higher.

Businesses could also benefit from the V2X technologies by storing electricity in their fleets of EVs and using it to power their operations at a later date. These technologies will also help make it even easier to rely on renewable technologies such as solar panels, with less need for fossil fuels to provide for surges in demand by allowing stored renewable energy to be sold into the grid instead.

Four projects are today receiving a share of £4.8 million of government funding to support their work testing and implementing these innovative technologies.

Minister for Affordability and Skills Amanda Solloway said:

The prospect of families being able to store energy on their doorstep in electric vehicles and use it to power their homes is incredibly exciting.

This is exactly the sort of ingenuity and creativity that makes the UK one of the world’s most innovative nations.

By backing this technology, we could save families hundreds of pounds a year, while also supporting jobs, investment and growth.

Transport Minister for Technology and Decarbonisation Anthony Browne said:

We’re continuing to support drivers, and this innovative new development is the next step in levelling-up our charging technology, which will benefit many households across the country.

This government has already spent over £2 billion in the transition to electric vehicles and our charging network is growing at pace, with 44% more public chargepoints than this time last year, meaning drivers can charge more easily than before.

The successful companies are:

• Hangar19 Ltd in Chelmsford – will demonstrate a 3-socket bidirectional charger, making a wider range of EVs available for energy flexibility and bidirectional charging
• 3ti Energy Hubs Ltd in Leatherhead – will combine a quick-to-deploy bidirectional charging hub with a solar canopy and energy storage battery, house in recycled shipping containers, which can make access to bidirectional charging available in more destinations, including vehicle depots
• Otaski Energy Solutions Ltd in Gateshead – will trial their bidirectional EV charger to enable fleet EV operators to access energy in a flexible way which could deliver savings in line with electricity supply and demand surges
• Electric Green Limited in London – will work with QEnergy to trial wireless V2X technology with a fleet of 20 delivery vehicles at Royal Mail

Today’s funding builds on existing government funding for electric vehicle charging, such as the £70 million pilot scheme, announced at COP28 in Dubai. This will also boost the number of ultra-rapid charge points at motorway services.

It comes as some of the world’s leading car manufacturers are choosing the UK as their home to develop the latest electric vehicles and the battery technology. They include:

• BMW, who have announced a £600 million investment to transform their Oxford plant to build the electric Mini
• JLR (a wholly owned subsidiary of Tata Motors Limited, part of Tata Sons) – Tata Sons are investing £4 billion in a new gigafactory to create up to 4,000 highly skilled jobs
• Nissan, who have announced they are delivering up to £2 billion investment to create a new electric vehicle manufacturing hub in Sunderland – helping put more zero emission vehicles on UK road

The UK has also committed to ending the sale of all new non-zero emission vehicles by 2035 to support the delivery of net zero. This ambition, combined with government support for industry through technologies like V2X, is helping cement the UK’s world leading position in the design, manufacture, and use of zero emissions vehicles, which will provide economic growth by stimulating employment, investment, and exports.

This follows the Prime Minister’s proportionate and pragmatic decision to delay the ban on new diesel and petrol cars from 2030 to 2035 – bringing the UK in line with countries such as Canada and Spain – which will support manufacturers and families in making the switch to electric, providing flexibility while also helping to grow the economy.

Dr Marco Landi, Head of Technology and Innovation, Electrification Services, JLR said:

We are delighted to be collaborating on this project with partners and the UK government to be able to accelerate and pioneer V2X technology. This funding will drive our work to make charging simpler, greener and cost effective, which is key to our all-electric future.

Working together with industry-leading partners, we are developing a complete EV ecosystem, from batteries to charging, supporting our net-zero transformation.

The programme is part of the overarching up to £65 million Flexibility Innovation Programme, supporting the efficient and flexible use of electricity, within the Department for Energy Security and Net Zero’s £1 billion Net Zero Innovation Portfolio (NZIP).

The press release issued by the Department for Energy Security and Net Zero on 14 December 2023.

Eleven new production projects helping to place UK at forefront of hydrogen industry and bring progress towards net zero ambitions.

Over 700 jobs will be created across the UK in a world-leading hydrogen industry from the South West of England to the Highlands of Scotland, backed by £2 billion in government funding over the next 15 years.

Energy Security Secretary Claire Coutinho today (Thursday 14 December) announced backing for 11 major projects to produce green hydrogen – through a process known as electrolysis – and confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply.

This represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe, helping to place the country at the forefront of this emerging industry. Unlike blue hydrogen, which is formed using fossil fuels and capturing the carbon emissions, green hydrogen is made by using renewable energy to split water – helping provide cleaner fuel for energy intensive industries and transport.

In return for this government support, the successful projects will invest over £400 million in the next 3 years, generating more than 700 jobs in local communities across the UK and delivering 125MW of new hydrogen for businesses including:

• Sofidel in South Wales, who will replace 50% of their current gas boiler consumption with hydrogen at their Port Talbot paper mill
• InchDairnie Distillery in Scotland, who plan to run a boiler on 100% hydrogen for use in their distilling process
• PD Ports in Teesside, who will use hydrogen to replace diesel in their vehicle fleet, decarbonising port operations from 2026

Energy Security Secretary Claire Coutinho said:

Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11 billion of investment by 2030.

Today’s announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe.

These 11 major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

Today’s funding commitment represents a monumental step forward in helping producers to deliver a fuel of the future today, backing businesses to go greener.

This will be essential to achieving our net zero targets, and will benefit people across the UK with the job and investment opportunities that this funding will bring.

And we’re not stopping there with a new, second round of funding now available for producers to apply for, so they can develop the next round of projects and build on this success.

Today’s funding represents the most significant step in scaling up the UK’s hydrogen economy to date – speeding up progress towards the government’s ambition to deploy up to 10GW low carbon production capacity by 2030.

Ministers have also today opened a new second round of funding that companies can apply for to support their projects and published a production roadmap, which sets out the government’s plan for future allocation rounds in 2025 and 2026. This includes ambitious plans to boost hydrogen capacity up to 1.5GW across these rounds, and award funding to projects to help deliver up to 4GW of CCUS-enabled, or blue, hydrogen and 6GW of green hydrogen by 2030 – giving businesses the confidence they need to invest in the UK.

Ministers have also announced their decision to support hydrogen blending in certain scenarios – subject to an assessment of safety evidence and final agreement.

Currently, less than 1% of the gas in distribution networks is hydrogen. Under proposals, hydrogen could be blended with other gases in the network as an offtaker of last resort, working to reduce costs in the hydrogen sector by helping producers, and to support the wider energy system.

Hydrogen blending may help achieve the UK’s net zero ambitions, but would have a limited and temporary role as the UK moves away from the use of natural gas.

Ministers have decided not to proceed with a hydrogen trial in Redcar, as the main source of hydrogen will not be available. The government recognises the potential role of hydrogen in home heating and will assess evidence from the neighbourhood trial in Fife, as well as similar schemes across Europe, to decide in 2026 whether and how hydrogen could help households in the journey to net zero.

Sopna Sury, Chief Operating Officer Hydrogen RWE Generation said:

Today’s announcements on the first 2 hydrogen allocation rounds mark a significant milestone in the development of the UK hydrogen economy.  They represent a shift from policy development to project delivery, giving industry more clarity on the route to final investment decisions.  Alongside the wider policy publications, this demonstrates that the UK wants to be a leader in delivering the clean energy transition.

These early projects are vital not only in driving the production of electrolytic hydrogen but also in signalling the need to build-out the T&S infrastructure for its wider distribution.

As a company with ambitions to develop approximately 2 gigawatts of green hydrogen projects across all our markets, and to invest around 8 billion euros net in green technologies in the UK between 2024-2030, RWE looks forward to being part of building a thriving hydrogen ecosystem in the UK.

Jane Toogood, Industry Co-Chair of the Hydrogen Delivery Council, said:

I warmly welcome the suite of announcements made by government today.  These represent positive and tangible progress across a broad range of topics, to deliver against a clear roadmap. The collaboration between industry and government within the Hydrogen Delivery Council has proved to be a valuable mechanism to enable progress at this early stage.

Bart White, European Head of Energy Structured Finance at Santander Corporate & Investment Banking (Santander CIB) said:

We very much welcome today’s broad suite of announcements that will further catalyse the development of the UK’s hydrogen infrastructure and ecosystem. Future generations will value these steps to lay the foundations of this burgeoning market and a critical part of the solution towards net zero. We stand ready to explore financing new projects to play our part in the UK’s refreshed roadmap.

Clare Jackson, CEO of Hydrogen UK, said:

The hydrogen industry welcomes today’s suite of announcements including the results of HAR1 negotiations that provide crucial support to first mover UK hydrogen projects, and will help kickstart domestic production. HAR1 and the various other documents including a thorough Update to the Market, the Hydrogen Production Delivery Roadmap and the Transport and Storage Networks Pathway are important steps forward for the UK’s hydrogen economy. We also welcome the positive decision on blending.

Today, Hydrogen UK also released an industry-led report on supply chains. Working together, industry and government have a responsibility to channel investment into our supply chains, thereby cementing the UK’s stature as a global frontrunner in hydrogen production and its diverse end-use applications.

Eric Adams, Carlton Power’s Hydrogen Projects Director said:

We are delighted with today’s announcement from the Department for Energy Security and Net Zero (DESNZ).  Securing contracts for each project – totalling 55MW of capacity and an investment of c£100 million, and each with planning consent – is a major achievement and places Carlton Power among the leading British companies that are helping to build the hydrogen economy in the UK.

Keith Clarke, Founder and Chief Executive of Carlton Power said:

We are supporting UK industry to decarbonise their operations, supporting the UK’s efforts to reach net zero and we are a catalyst for green investment and jobs into the UK regions.  Working with our financial partners, Schroders Greencoat, we can now work towards Final Investment Decisions for each scheme in the early part of next year and thereafter work to have the 3 enter commercial operation within 2 years.

Jamie Burns, Director at Hygen said:

We are delighted that this project has been selected for government funding to take it to the next phase of development – it will provide a blueprint for how complex projects like this can be delivered.

Gareth Mills, Managing Director at N-Gen said:

This is an important and exciting project, not just for Bradford, but also for the wider area and the community that lives here, so we are delighted to now have financial backing from government to allow us to start work on the site.

Bradford Council declared a climate emergency in 2019 and we believe this facility will play an important role in helping the area deliver on its climate change ambitions.

We know hydrogen can support decarbonising all energy types including transport, and producing green hydrogen is central to this, so we’re really excited to work with Hygen to deliver this development.

Sarah Potts, Storegga’s Hydrogen Managing Director said:

After a lot of hard work by the integrated Storegga and ScottishPower project team, particularly over the past 18 months since the UK government launch of HAR1, I’m delighted that Cromarty has been selected by the UK government Department of Energy Security and Net Zero as one of 11 projects to be awarded a funding support contract. As an SME originating from North East Scotland, I believe Storegga is able to bring a unique perspective and ambition to deliver decarbonisation solutions for Scottish industry. We look forward to now being able to take the project forward to a final investment decision in 2024, with first production in 2026 and continuing to grow our hydrogen investments in the region.

Tristan Zipfel, Director of Strategy and Analysis at EDF Renewables UK, said:

Today’s announcement is a huge leap forward for green hydrogen innovation which has the capacity to guarantee the long-term sustainability of industry in the North East. We are delighted that the government has given this vote of confidence in both EDF Renewables UK, Hynamics and the capacity of the region to be a world-leader in green technology and innovation.

Pierre de Raphelis-Soissan, CEO at Hynamics UK said:

This is a very important step towards realising the potential of Tees Green Hydrogen and making a ground breaking contribution to decarbonisation in the Tees Valley. The project is uniquely placed to be scalable in order that future demand can be met as hydrogen-based technology becomes the industrial norm.

Peter Jones, Director of ScottishPower Green Hydrogen Business said:

The first wave of production facilities like Whitelee and Cromarty will demonstrate that zero-emission hydrogen can be delivered at commercial scale and drive the development of a viable market for the green fuel.

It will also create highly skilled green jobs across the UK and quickly support a world leading supply chain.

It’s early days for this burgeoning market and government support is to be welcomed to help deliver a future green hydrogen economy.

Julien Rolland, CEO of H2 Energy Europe, said:

We are very grateful for the support that the UK government has announced for our 20MW electrolytic hydrogen production facility, marking a significant milestone in our journey to develop South Wales’s first large-scale green hydrogen production plant. The facility will enable industry in South Wales to transition to using green hydrogen produced from renewable energy sources.

The green hydrogen produced at Milford Haven will be used to displace natural gas and other fossil fuels in industrial and chemical processes and contribute to the decarbonisation of the local industry. The interest that we’ve already received from local industry means we are already reviewing the opportunity to scale up the facility.

Alex Brierley, co-head of Octopus Energy Generation’s fund management team said:

This is a major milestone as this funding will enable HYRO to roll out green hydrogen projects at scale in hard-to-electrify industrial processes. Our first project will be working with Kimberly-Clark to flush away fossil fuels when manufacturing Andrex and Kleenex. We’ve got a big pipeline of projects to help even more industrial businesses decarbonise – and we’re on track to invest billions in this sector.

Marco Perona, EMEA CEO for RES, said:

Green hydrogen, created using low cost, British renewable energy, will revolutionise how we power industry, helping the UK to build a globally competitive, zero carbon economy in the process. HYRO, in partnership with Kimberly-Clark, is leading this transition with a large pipeline of projects and with this latest backing will show how we can make green hydrogen a reality.

Mr Tomoki Nishino, President and CEO of Marubeni Europower Ltd, said:

Marubeni team is very honoured to be selected as a recipient of Hydrogen Allocation Round 1. Recently in October 2023, Marubeni signed an MoU with the UK government whereby we have shown our plan to invest £10 billion (along with our partners) into UK green business. We truly hope that a combination of HAR1 funding and Marubeni’s investment help decarbonize UK through HyBont, especially in the South Wales region.

The press release issued by the Department for Energy Security and Net Zero on 7 December 2023.

More businesses will be able to get support from the Energy Ombudsman, under new proposals.

More than 200,000 businesses could for the first time get access to specialist support for disputes with their energy supplier, under plans announced today (Thursday 7 December).

Under new proposals, companies with up to 50 employees would qualify for support from the Energy Ombudsman – with issues ranging from disputes over bills and energy supply, to how an energy product or service has been sold, or wider customer service issues.

Currently, this support is only available to businesses of up to 10 employees, and households.

Making this move will enable these companies to settle disputes with their energy supplier without facing costly court fees – ultimately saving them money.

It follows a survey conducted by regulator Ofgem, which found that 94% of the total respondents, which included businesses organisations, consumer groups, and suppliers, said they would welcome this move.

Minister for Energy Consumers and Affordability Amanda Solloway said:

This government has always stood by businesses, and we want to ensure they are getting proper support and service in dealing with energy suppliers.

That’s why we’re proposing expanding the reach of the Energy Ombudsman to cover an extra 200,000 businesses, allowing them to access free, impartial advice and resolve issues with their supplier without the need for an expensive trip to court.

See the consultation on a New threshold for businesses accessing the Energy Ombudsman which is open until Wednesday 31 January 2024.

The press release issued by the Department for Energy Security and Net Zero on 5 December 2023.

Net Zero Minister Graham Stuart has announced further details of £140 million to support developing countries deliver net zero while growing their economies.

Countries looking to follow the UK’s leadership and boost their use of clean energy sources will receive millions of pounds to support their switch.

At the COP28 negotiations in Dubai, Energy Security and Net Zero Minister Graham Stuart will announce further details of £140 million to support developing countries deliver net zero while extending access to affordable energy and growing their economies.

The funds could provide clean energy for 8.7 million people, create 25,000 jobs in clean energy industries and cut CO2 emissions by at least 800,000 tonnes.

This builds on UK progress at home on energy transition. Setting into law one of the most ambitious 2035 climate change targets of any major economy, the UK has undergone the fastest reduction in greenhouse gas emissions of any major economy – down nearly 50% since 1990.

However, to meet net zero, developing countries also need to reduce their emissions and the funding announced today will help support this.

Minister for Energy Security and Net Zero, Graham Stuart, said:

The UK is helping other nations act swiftly to switch to renewable energy and slash emissions on the pathway to net zero, all while creating thousands of new green jobs.

Backed by an extra £140 million, the UK is leading the world in supporting developing countries to unlock innovation and clean tech in this critical decade for our climate.

To meet net zero globally by 2050, at least a third of the emissions reductions will need to be supported by technologies that are not yet on the market. The UK is therefore working with partners around the world to accelerate the global green transition, helping make clean technologies affordable, accessible and reliable for all.

At the start of the conference, the Prime Minister announced £1.6 billion for international climate finance (ICF) projects over the course of COP28 aimed at stopping and reversing deforestation, protecting the natural environment and accelerating the global transition to clean and renewable energy. The investment delivers on the UK’s commitment to spend £11.6 billion of ICF over 5 years, and takes it further with new funding, exceeding our international pledges.

Today’s package forms part of that £1.6 billion commitment and includes:

• up to £80 million through the UK Partnering for Accelerated Climate Transitions (PACT), a flagship UK partnership programme to support governments across Africa, Asia, and Latin America to set clean growth goals, reducing emissions by starting renewable energy projects, greener transport and more sustainable use of land
• £40 million via the Transforming Energy Access (TEA) platform to demonstrate energy access technologies in low-income countries, and fund research and development into climate friendly refrigeration and appliances that can run directly off renewables
• £15 million via the Modern Energy Cooking Services (MECS) programme to help countries move away from firewood and charcoal for cooking to cleaner electrical cooking appliances
• plus an additional £4 million to support universal access to affordable and reliable clean energy in Africa, which will deliver access to electricity to thousands of people

These measures also follow concerted efforts to help developing countries reduce their emissions and green their electricity grids.

The Minister also announced key partnerships with countries on a range of issues to help international efforts to tackle climate change.

These include:

• the UK pledging its commitment to the Green Public Procurement Pledge, alongside Germany, Canada and the US – sending a multi-billion-dollar global demand signal to accelerate low-carbon steel, cement and concrete production
• Australia and Norway signing the UK-led Clean Energy Transition Partnership, bringing the total membership to over 40 countries and public finance institutions. Both countries have committed to move international public support away from unabated fossil fuels and towards clean energy

CBI Chief Executive, Rain Newton-Smith, said:

The UK has always been a leader in the global net zero transition. It was the first to sign net zero into law, has cut emissions faster than any other G7 nation, and, through the COP26 Presidency, has led unprecedented engagement with the private sector.

However, climate change is a global issue with global repercussions, and it’s simply not enough to focus on our own actions. This announcement will allow the UK to play an important role in supporting developing countries to make their own transition.

In turn, business stands ready to do its part and to champion the impact that increased public-private collaboration can have on this generation defining issue.

Today, the UK government is also delivering on its 2023 Green Finance Strategy commitment and announcing that Vanessa Havard-Williams will lead the Transition Finance Market Review, which will launch in January and position the UK as the best place in the world to raise transition capital with integrity, to help companies in high-emitting sectors access capital to reduce emissions faster.

The press release issued by the Department for Energy Security and Net Zero on 2 December 2023.

UK commits more than £85 million funding at COP28 to tackle deforestation and cut methane emissions.

The UK will today announce a multi-million pound package of measures to protect the world’s rainforests, encourage investment in clean energy technologies and help developing countries cut their carbon emissions.

At COP28 in Dubai, Energy Security Secretary Claire Coutinho will commit over £85 million funding for initiatives ranging from combating deforestation to cutting methane emissions and will sign new clean energy agreements with international partners, including Brazil, the US and countries across Europe.

The funding includes up to £35 million to protect the Amazon rainforest through Brazil’s dedicated Amazon Fund, agreed on Friday. This would be on top of £80 million announced by the Prime Minister earlier this year, placing the UK among the fund’s top 3 contributors.

Other measures include:

• backing green enterprise – up to £40 million new funding to expand the UK’s Climate Finance Accelerator. The Accelerator aims to provide practical ways to help countries finance and deliver their climate commitments under the Paris Agreement. For example, this has helped start-up company Source Global attract £79 million of investment to make hydropanels that use solar energy to produce drinking water from air moisture. The extra funding, agreed on Friday, will support up to 750 new low carbon projects in up to 16 countries across Latin America, Africa and Asia between now and 2029
• cutting emissions – £2 million support for President Biden’s Methane Finance Sprint, alongside the European Union, Canada, and other international partners. Contributions to the Sprint will support projects in developing countries, helping them to reduce emissions in major methane emitting sectors such as energy, agriculture, and waste. This is part of a wider £12 million package for the International Energy Agency’s programme to accelerate the transition to clean energy
• Brazil partnerships – 2 unique partnerships between the UK and Brazil to speed up the South American country’s transition to clean technologies. The agreements will help Brazil cut emissions from heavy industry, support the development of hydrogen technologies and leverage the strength of both countries by bringing together a global package of financial, technical and other specialist assistance
• nuclear pledge – the UK will endorse a global ambition to treble civil nuclear power capacity between 2020 and 2050, alongside other like-minded nations including the US and France, helping combat climate change and improve energy security. This builds on the government’s commitment for a quarter of the UK’s power to come from nuclear by 2050

Energy Security Secretary Claire Coutinho said:

The UK is a world leader in the drive to net zero, so it is vital we support our international allies like Brazil in meeting their climate ambitions.

That’s why we have pledged up to £35 million to help stop deforestation in the Amazon, making the UK one of the largest contributors to the Amazon Fund.

We will also partner with Brazil at COP28 and draw on our combined strengths to develop alternative fuels like hydrogen, advance green technologies and drive global action to cut emissions.

The first agreement with Brazil will boost efforts to cut carbon emissions from heavy industries including steel, cement and chemicals – which are set to become responsible for the largest share of global emissions in the 2030s. Measures to do this will include implementing new technologies, piloting the use of alternative fuels and enhancing energy efficiency.

The second will see the UK support Brazil’s National Hydrogen Programme, which is aiming for a sevenfold increase in research and development in clean hydrogen-related technologies between 2020 and 2025. This could support multiple sector transitions to net zero including heavy industry and maritime.

The COP28 President Dr Sultan Al Jaber is also expected to launch a 12-month Action Plan under the UK’s COP26-initiated Breakthrough Agenda – which has become an established part of the international COP framework.

Alongside a coalition of 56 governments, led by the United Arab Emirates, the UK, the US, India, Morocco, Canada, Germany, Egypt and France, the global Action Plan is designed to accelerate international collaborative action to lower the cost of clean technologies in the power, road transport, steel, hydrogen, and agriculture sectors – and ensure the world is on track to halve emissions by 2030.