Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 18 September 2023.

Government opens process for partners to express interest in investing in nuclear revival.

Private investors will have their first chance to come forward and qualify to invest in Sizewell C power station, a key component of the UK’s nuclear revival, from today (Monday 18 September).

Today, the Energy Security Secretary Claire Coutinho confirmed the next stage for the investment process – opening applications for partners to register their interest in being part of the project.

The government, the Sizewell C Company and EDF, the project’s lead developer, are looking for companies with substantial experience in the delivery of major infrastructure projects. This builds on engagement undertaken as the Sizewell C project has developed.

Any investment will also be subject to strict national security checks.

Sizewell C is expected to house 2 of the most powerful nuclear reactors in the world.  It will generate reliable, low-carbon power for up to 6 million homes over 60 years, avoiding 9 million tonnes of carbon each year. At peak construction, it is expected to support 10,000 jobs across the country.

In a show of support, the government has already invested £700 million in the project – the first such direct public investment in a nuclear project for a generation. Ministers have also made £511 million available to continue project development and prepare the Suffolk site for construction, ahead of the planned private equity raise for the project in advance.

The government is delivering a revival of nuclear power by investing in large scale reactors as well as emerging technologies, such as Small Modular Reactors, with the ambition of having up to a quarter of the UK’s electricity generated by nuclear by 2050.

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

Investing in Sizewell C is an exciting opportunity to be a part of the UK’s nuclear revival – delivering clean, reliable, and affordable power for generations to come.

This project will create thousands of jobs, power 6 million homes and will boost our energy security.

We are focused on securing good value for taxpayers and look forward to seeing strong and competitive bids to be a part of this exciting project.

Sizewell C Company Joint Managing Director, Julia Pyke, said:

The launch of the formal equity raise opens another exciting phase for the project, following a positive response from investors during market testing.

Investors who participate in Sizewell C would be contributing to one of the biggest clean energy projects in the UK.  They should feel confident in our proposals as we are building a replica project with government backing, a mature reactor design and a workforce ready to build it.

We look forward to starting the main site construction and delivering this vital project which will reduce costs for consumers and help to create a future-proof low-carbon energy system for Britain.

The initial process launched today invites partners to complete a pre-qualification assessment. Companies will have to demonstrate that they meet the key criteria for entering negotiations on a potential equity stake in Sizewell C, including experience in delivering major infrastructure projects.

The process has been designed following market testing with a cross-section of partners.

While details of the investors who come forward and get involved cannot be provided at this stage given the need for commercial confidentiality, ministers will be looking for private investors who can add value to the project and will only accept private investment if it provides value for money, while bolstering energy security.

Minister for Nuclear and Networks, Andrew Bowie, said:

Sizewell C is at the heart of the UK’s nuclear revival and our ambition to provide up to a quarter of the UK’s electricity from homegrown nuclear energy by 2050.

This will provide reliable and abundant energy, boost economic growth and jobs across the country and underpin the UK’s path to Net Zero.

Following the first government direct public investment in a nuclear project for a generation, I look forward to seeing strong and competitive bids from potential investors to bring new expertise and experience into the company to help deliver this critical piece of national infrastructure.

CEO of EDF Energy, Simone Rossi, said:

EDF is pleased to support the development of the Sizewell C nuclear plant and the launch of this equity raise.

The very significant investment that EDF continues to make in Britain at Hinkley Point C benefits Sizewell C through replication of the design and construction, and a proven UK supply chain.

Together, Hinkley Point C and Sizewell C will be the bedrock of Britain’s new nuclear fleet, a critical part of ensuring Britain has the clean, affordable energy it needs.

Alongside support for Sizewell C at Suffolk, and Hinkley Point C in Somerset, the government has also launched Great British Nuclear, which will further drive the UK’s nuclear revival through the development of new and emerging technologies.

This includes Small Modular Reactors, which can be constructed more quickly having been partially built in factories; and Advanced Modular Reactors, which are also smaller and can generate high temperatures which can help power industry.

The press release issued by the Department for Energy Security and Net Zero on 15 September 2023.

Industry and consumer groups are invited to offer views on increasing the amount of hydrogen used in the UK’s gas network.

The government has, today (Friday 15 September), invited views from industry and consumer groups on increasing the amount of hydrogen used in the UK’s gas network to fuel homes and businesses, in a move to help cut emissions, strengthen energy security and create new skilled jobs.

Energy Minister Lord Callanan has launched a consultation on the UK pursuing a process of ‘blending’, to accelerate the creation of a new hydrogen industry.

Hydrogen currently makes up around 0.1% of the gas used in people’s homes and businesses – but proposals could see the volume of hydrogen in the network increase gradually over time, up to a maximum of 20%.

This blending of hydrogen with natural gas in the network could boost hydrogen production – which would in turn cut carbon emissions and strengthen energy security, helping to stabilise bills for families and businesses by making them less susceptible to volatile gas prices.

The views from industry and consumer groups – combined with forthcoming advice from the Health and Safety Executive – will help inform next steps on the use of hydrogen, including through blending.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

We want to capture the full economic potential that comes with using hydrogen as a cleaner, reliable energy source – with the opportunity to create tens of thousands of new skilled jobs.

Blending hydrogen into our gas supply – through existing gas infrastructure – would open the doors to an expansion of its use as a fuel, one which could help us cut emissions and stabilise bills for families and businesses.

The consultation launched today marks the next step in government’s plans to reach 10GW of hydrogen production capacity by 2030 – creating over 12,000 new jobs and putting the UK at the forefront of the growing hydrogen market.

Already the government has committed to support the design of business models that will help early projects develop new technology – so hydrogen can be used as a cleaner home-grown energy source that will help stabilise bills for customers.

The energy sector, consumer groups and wider industry have until 27 October 2023 to submit their views to the government’s consultation on ‘Hydrogen Blending into GB gas distribution networks’. The feedback will help inform government’s decision on whether to proceed with blending.

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

More than 300,000 homes in England, Scotland and Wales to get insulation installed, which could save families an average of £400 a year on their energy bills.

More than 300,000 families are set to save hundreds of pounds on their bills thanks to new energy efficiency upgrades.

Today (Thursday 14 September) the government launches the £1 billion drive to help those most in need heat their home for less, through the Great British Insulation Scheme.

Families in lower council tax bands with less energy-efficient homes will be offered vital upgrades – such as roof, loft or cavity wall insulation – which could cut their annual energy bill by an average of between £300 to £400.

The scheme will boost help for those on the lowest incomes as well as extend support to a wider range of households compared to other existing government-funded schemes. Those eligible for support under the Great British Insulation Scheme include families in council tax bands A-D in England, A-E in Scotland and Wales, with an Energy Performance Certificate (EPC) rating of D or below.

The 300,000 set to benefit come on top of the 2.4 million homes that have so far benefited from new energy efficiency measures under existing support schemes, as part of government’s ongoing efforts to protect the most vulnerable across the country.

These customers will, from today, be able to find out if they can get support to make their homes more energy efficient by using a new online checker tool.

Energy Security Secretary Claire Coutinho said:

We are determined to help families keep their homes warm through the winter months and save on their energy costs.

Our Great British Insulation Scheme will help hundreds of thousands of people, including some of the most vulnerable in society, get the upgrades their homes need, while cutting their energy bills.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Boosting the energy efficiency of homes creates the best long-term protection against fuel poverty for the most vulnerable.

That’s why we are helping families with extra support to make their homes warmer, while saving hundreds on energy costs.

The scheme will help build on the government’s progress in improving energy efficiency in the country’s homes – in 2010, just 14% of homes had an EPC rating of C or above, compared to 47% in 2022.

This support will run alongside the existing Energy Company Obligation (ECO) scheme, which offers free home energy efficiency improvements, such as insulation, heat pumps and solar panels to families on low incomes.

Customers will be able to use a new online checker for the Great British Insulation Scheme, launched today, to find out if they are eligible. The tool will ask a series of questions – including how they heat their home, whether their home has solid or cavity walls, and if they are receiving any benefits.

A separate checker has also been launched for the Home Upgrade Grant, which could help as many as 25,000 off-the-gas-grid homes that have an EPC rating of D to G. People can find out if they qualify for energy efficiency support – ranging from insulation and draft proofing to new windows and doors, as well as heat pumps and solar panels.

Customers using the online tools will then be referred to either their energy supplier, for support from the ECO programme and Great British Insulation Scheme, or their local council for the Home Upgrade Grant, to take the next step in making their home more energy efficient.

Mike Thornton, Chief Executive, Energy Saving Trust said:

Improving the energy efficiency of our homes is a vital part of addressing both the energy crisis and climate emergency.

By reducing demand for fossil fuels it provides a triple win long-term solution for cutting energy bills, decreasing carbon emissions and improving energy security.

The launch of the Great British Insulation Scheme is therefore a welcome development as it will mean more households are eligible for financial support for insulation measures and comes at a crucial time as we approach the colder winter months.

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

Following the decision to not associate to Euratom R&T, the government announces plans for an ambitious and cutting-edge suite of new fusion R&D in the UK.

The press release issued by the Department for Energy Security and Net Zero on 6 September 2023.

Mark McAllister is named as the government’s preferred candidate to be the next Chair of Ofgem, the energy regulator.

Mark McAllister is today (6 September 2023) named as the government’s preferred candidate to be the next Chair of Ofgem, the energy regulator.

Minister for Energy Consumers and Affordability Amanda Solloway said that Mark, currently Chair of the Office for Nuclear Regulation, will bring a “strong track record” in the industry to the role.

Mark would help ensure the energy market is fit for the future – from reforming the grid to supporting households in accessing smarter, more flexible energy.

Responsible for helping shape the regulator’s strategy and policy decisions, as Chair he will champion the interests of electricity and gas consumers. This involves working closely with government, which provided nearly £40 billion to cover around half a typical household’s energy bill last winter.

As we move to a more secure energy system, the Chair’s leadership will help us bring down household bills, protect vulnerable people and ensure the market is working for all consumers.

Minister for Energy Consumers and Affordability Amanda Solloway said:

We will always ensure the energy market is working for families to protect them from sky high bills, including by working closely with our partners at Ofgem.

Mark McAllister has a strong track record of advising governments and regulators on competition and regulation. His expertise will be vital in the years ahead, as we make sure more households have access to cheaper, cleaner energy.

I would also like to extend my warm thanks to Martin Cave for all of his work as Ofgem Chair since 2018.

An engineer by profession, Mark has served as Chair of the Office for Nuclear Regulation (ONR) since April 2019, where he is charged with ensuring the ONR delivers efficient and effective regulation of the nuclear industry.

His selection follows a competitive recruitment process and will be scrutinised by the Energy Security and Net Zero (ESNZ) Select Committee at a forthcoming pre-appointment hearing.

The date of Mark’s pre-appointment hearing will be announced by the ESNZ Select Committee. If confirmed, he is expected to take up post in November.

The press release issued by the Department for Energy Security and Net Zero on 1 September 2023.

The UK government confirms it will be reviewing its Energy Charter Treaty membership, and considering withdrawal if vital modernisation is not agreed.

The UK is reviewing its membership of the Energy Charter Treaty, Energy Minister Graham Stuart announced today (Friday 1 September), including whether the country will leave.

The treaty has historically provided protections for investors in fossil fuels – the UK’s future membership will depend on whether proposals for the treaty’s modernisation are adopted in November.

Last year the UK reached a landmark agreement to modernise the terms of the Energy Charter Treaty, maintaining its current benefits while supporting the transition to cleaner energy.

The modernised treaty, for which the UK has been a strong advocate, was supposed to have been adopted in November last year. It would have a much stronger focus on promoting clean, affordable energy, such as carbon capture, utilisation and storage as well as hydrogen and other renewables. It would also strengthen the UK government’s sovereign right to change its energy system to reach net zero and protect UK investors abroad.

However, several EU member states have decided to leave the treaty, leading to an impasse on modernisation. Ministers are therefore reviewing the UK’s membership of the Energy Charter Treaty to support the transition to cleaner, cheaper and home-grown energy sources, in a mission to bolster energy security.

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

Rather than being stuck indefinitely with an outdated treaty, the UK wants to see an agreement on a modernised treaty as quickly as possible.

In its current form, the Energy Charter Treaty will not support those countries looking to make the transition to cleaner, cheaper energy sources such as renewables – and could even penalise our country for being at the forefront of those efforts.

Governments around the world are looking to boost their sources of home-grown energy, including with new clean technologies – and that is why the Energy Charter Treaty must be modernised. It is also why we are reviewing our membership, and will consider withdrawal, if that vital modernisation is not agreed.

The UK will continue to carefully consider the views of stakeholders in business, civil society and Parliament to inform the UK’s approach. The UK’s strong rule of law means it remains an attractive destination for investment in the energy sector regardless of its Energy Charter Treaty membership.

The press release issued by the Department for Energy Security and Net Zero on 31 August 2023.

Simplified approach to qualifying for a heat pump grant could save consumers time and money, and variable grants will improve access.

Homeowners and small businesses could find it cheaper and easier to install heat pumps under new proposals set out today (Thursday 31 August).

Proposed measures could mean varying the levels of grants that are made available, depending on the customer’s property type or existing fuel source.

This would make heat pump installations more affordable for even more households and small businesses, enabling them to benefit from low-cost and low-carbon heating.

Households could also save time and money through a simplified approach to qualifying for a heat pump grant by removing the need to install loft or cavity wall insulation first.

These changes will help more homes and businesses move away from costly foreign fossil fuels and onto cleaner, cheaper homegrown energy – forming part of the government’s drive to decarbonise the nation’s heating, with more than £81 million in vouchers already issued to customers under the Boiler Upgrade Scheme.

Today’s new proposals also provide an additional option to help consumers install new biomass boilers that also work as an oven, helping more households access the latest in cutting-edge, green technology.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Heat pumps are a vital tool in cutting the carbon emissions from people heating their homes, while also helping to drive down costs and boosting our energy security.

While a heat pump can be installed for a similar price to installing a gas boiler, the support we’ve put in place means it is an option for more and more households.

Today’s changes go even further and will mean even more people could benefit from making the switch, offering them the option for a low-emission, low-cost form of heating their homes.

A heat pump takes heat at a low temperature from the air or ground, increases it to a higher temperature, before transferring the heat into homes for heating and hot water. This technology is significantly more efficient than traditional boilers and uses cleaner electricity rather than fossil fuels – helping to reduce the carbon footprint of a home.

The government’s £450 million Boiler Upgrade Scheme was recently extended until 2028 and offers grants of £5,000 towards the installation of an air source heat pump; £6,000 off a ground source heat pump; and £5,000 off a biomass boiler. Consumers can also receive a zero VAT rate on installations.

Consumer satisfaction is also high, with 92% of surveyed heat pump owners saying they were highly satisfied with the technology after 2 winters, in an evaluation of the Domestic Renewable Heat Incentive Scheme, which was replaced by the Boiler Upgrade Scheme.

Heat pump installers, manufactures, suppliers, and the wider industry are now being invited to offer their views on the government’s proposed changes to the Boiler Upgrade Scheme, with the consultation open on GOV.UK until 12 October.

This comes alongside a government commitment to the Future Homes Standard coming into force in 2025. The Building Regulations will continue to set a performance-based standard rather than mandating or banning the use of any technologies.

However, to make sure that new homes are zero carbon ready we plan to set the performance standard of the Future Homes Standard at a level which will effectively preclude new homes being built with fossil fuel heating.

The press release issued by the Department for Energy Security and Net Zero on 30 August 2023.

Two projects have been awarded funding to develop windfarm mitigating prototypes and new funding announced to help the government accurately model the effectiveness of the different solutions.

• The Department for Energy Security and Net Zero and DASA has awarded £3.2 million in funding to minimise the impact of offshore windfarms on UK Air Defence.
• The funding will be used to help develop prototype demonstrations of windfarm mitigating technologies such as new materials and sensor technology.
• A further competition has also launched today, with up to £500,000 in funding available for innovators with expertise in modelling and testing the effectiveness of different mitigation technologies.

Another significant boost to the UK’s renewable energy expansion has been delivered today, with fresh multi-million-pound Government funding and the launch of a new competition driving the move to minimise the impact of offshore windfarms on UK Air Defence surveillance.

Funding worth £3.2 million has been awarded by the Defence and Security Accelerator (DASA), in partnership with the Department for Energy Security and Net Zero (DESNZ), to two projects aiming to demonstrate technologies which can mitigate offshore windfarms’ impacts and their interference on defence radar.

Alongside this a new £500,000 competition has been launched which will help companies find solutions to accurately model and test the effectiveness of these technologies.

This will help ensure the UK remains on course to reach its ambition of 50GW in offshore wind by 2030, whilst supporting and co-existing with our air defence capabilities.

The Windfarm Mitigation for UK Air Defence: Phase 3 Programme is funded by the government’s £1 billion Net Zero Innovation Portfolio (NZIP) and is undertaken in partnership with the Royal Air Force (RAF), the Defence Science and Technology Laboratory (Dstl), and DASA.

Energy Security Secretary Grant Shapps said:

“Putin’s illegal invasion of Ukraine has shown us how important it is to power more of Britain from Britain.”

“Our offshore wind capability plays a huge role in delivering our energy security, with world’s four largest offshore windfarms in UK waters.”

“But with the war raging on, we need to make sure our energy security and our national security remain fully compatible.”

“This funding will ensure our offshore wind works alongside our latest air defence technologies – boosting our defences through our military, and by delivering home-grown energy for our homes and businesses.”

The first winner of the funding today is LiveLink Aerospace, a Hampshire-based aerospace company, who have been awarded up to £1.3 million in funding.

Their project will address the challenge of radar clutter caused by the rotating blades of wind turbines, which can degrade the performance of air defence radars and surveillance systems.

The firm’s work comprises of developing a series of small low-cost and robust passive air defence sensors, which do not emit any signals themselves, and therefore do not interfere with the radar returns from wind turbines.

The second winner is Trelleborg, an engineering firm based in Nottinghamshire, which has been awarded up to £1.8 million in grant funding to deliver a project on the use of advanced materials in wind turbines to tackle radar interference. Trelleborg will use its existing expertise in manufacturing and engineering of stealth materials to deliver next-generation wind blades which will cause less interference with radars.

Key dates and funding

Also announced today, is up to £500,000 in funding now available for Stream 2 of Windfarm Mitigation for UK Air Defence: Phase 3.This phase seeks to provide funding for innovators with expertise in modelling and testing the effectiveness of different mitigation technologies, with the end goal of producing the best technology through the right combination of radar, materials and mapping software.

The deadline to submit a proposal is midday 24 October 2023 (BST).Read to full competition document to submit a proposal.

The Windfarm Mitigation for UK Air Defence Programme

As part of the UK’s renewable energy supply to achieve Net Zero goals, offshore wind energy will be essential. However, the installation of offshore windfarms may cause detrimental effects on the quality of data gathered from surveillance radars, which are crucial for the UK’s air defence detection capability.

The Windfarm Mitigation for UK Air Defence programme has been addressing this challenge area for several years. After the successful completion of Phase 1 and Phase 2, Stream 1 of Phase 3 was launched earlier this year. The primary objective of Stream 1 is to support prototype demonstration of the technologies that could mitigate the impact of windfarms on UK Air Defence.

Stream 2 aims to find innovative solutions that can accurately model and test the effectiveness of different mitigation technologies.

Wing Commander Kevin Walton, Co-Chair of the Ministry of Defence/Offshore Wind Industry Council Air Defence Mitigation Task Force said:

“The MOD is playing an active role in the UK’s efforts to build a greener, net-zero future.

“Offshore wind will play a central part in meeting our nation’s renewable energy needs and ensuring energy security for the UK. Complementing existing RAF work to mitigate the impacts of large-scale offshore windfarms on our current radars and the previous phases of this competition, this 2nd stream of Phase 3 of the innovation competition will play an important part in helping us to find the right combination of future solutions that will enable the long-term co-existence of windfarms and the UK’s air surveillance radars.”

Windfarm Mitigation for UK Air Defence Programme: Phase 3 – Stream 2

To support the decision making on further development of windfarm mitigation technologies, it is necessary to develop a model which can be used to objectively compare the funded solutions, determine their effectiveness in reducing the impact of proposed offshore windfarm developments and predict the consequences and benefits of combining solutions together.

For this competition, we are seeking models that can help assess the performance of different windfarm mitigation technologies to inform future policy decisions. The model should be able to assess the technologies and combinations against a set of specific metrics, data, and different scenarios.

Example scenarios include:

• Several military jets crossing over a windfarm
• A fast jet performing a turn over a windfarm
• A supersonic fast jet traversing a windfarm at high/low altitude

Example metrics include:

• Percentage of time over a windfarm that the target remains tracked
• Time to re-establish tracking if lost
• Delay of any tracking.

Read the full competition document for a more detailed breakdown of the competition’s requirements.

The press release issued by the Department for Energy Security and Net Zero on 29 August 2023.

£341 million investment builds on the government’s existing £870 million stake and its plans to rapidly expand nuclear energy in the UK.

Steps to further speed up preparations to make the site at Sizewell C in Suffolk shovel-ready have been announced today (Tuesday 29 August), as part of a major drive to create a new generation of nuclear power stations in the UK.

Ministers today made available a further £341 million of previously allocated funding for development work on the project. The extra money will help prepare the site for construction, procuring key components from the project’s supply chain, and expanding its workforce.

It would see activity ramp up at the Suffolk site, supporting continued preparation works, such as constructing onsite training facilities for 1500 apprenticeships, further development of the plant’s engineering design, and direct investments in the local community ahead of work starting. The funding would build on the government’s existing £870 million stake and help drive progress towards the long-standing objective of reaching a Final Investment Decision on a new large-scale nuclear project this Parliament.

Sizewell C would provide reliable, low-carbon power to the equivalent of 6 million homes over 60 years – saving the UK as many as 9 million tonnes of CO2 emissions each year. At the peak of construction work, it would support 10,000 jobs nationwide, with 70% of the value of construction contracts in the supply chain going to UK businesses.

Making this funding available is the latest measure to support the government’s plans to rapidly expand nuclear energy in the UK, powering up to a quarter of UK electricity demands by 2050, key to reducing reliance on imported fossil fuels from overseas, providing energy independence and security of supply in Britain.

Minister for Nuclear and Networks Andrew Bowie said:

Sizewell C will be a significant part of the revival of nuclear energy in this country – providing clean, home-grown power to millions of homes, providing thousands of jobs and ending reliance on foreign electricity to bolster our energy security.

Today’s funding announcement is a clear demonstration of the government’s commitment to this vital project, and will mean the site will be shovel-ready, and work able to start, much more quickly.

This is the second tranche of planned government investment this summer, further supporting plans to secure private investment using the newly established Regulated Asset Base (RAB) finance model and bolstering the pledge of taking a final investment decision on Sizewell C this Parliament.

Like Hinkley Point C in Somerset, Sizewell C would comprise 2 reactors, generating a total of 3.2GW of electricity, equivalent to 7% of the UK’s electricity needs. It would help deliver the government’s ambition for up to 24GW of the UK’s power to come from nuclear sources by 2050 – 4 times the current level.

Sizewell C Company Joint Managing Director, Julia Pyke, said:

This is great news and puts us in an even stronger position to start full construction. It will also allow us to implement several community schemes over the next few months. We want people living near Sizewell C to see the benefits of the project as soon as possible and we’re looking forward to getting started on a range of proposals which will bring real improvements to the area well before the main construction gets underway.

The news follows the launch of a new arms-length body Great British Nuclear (GBN), responsible for helping to deliver new nuclear, grow the economy, drive down bills and boost the country’s energy security. The initial focus of GBN will be on Small Modular Reactors, but further large gigawatt-scale projects will also be considered to help deliver on our net zero ambitions.

The press release issued by the Department for Energy Security and Net Zero on 23 August 2023.

The UK supports the supply of vital fuel for Ukraine’s nuclear power plants, as the Energy Security Secretary Grant Shapps visits Kyiv.

Grant Shapps has visited Kyiv as the UK took action to support the supply of vital fuel for Ukraine’s plants to help power the country through the winter.

The Energy Security Secretary travelled to the capital to meet senior government ministers and leading energy industry figures to discuss Ukraine’s recovery and ongoing UK support following the illegal full-scale invasion by Putin’s Russia.

His visit comes just 2 months after the UK hosted the Ukraine Recovery Conference in London, where international commitments for Ukraine’s recovery and reconstruction topped $60 billion. The UK government also agreed a Memorandum of Understanding committing support to Ukraine’s energy sector and green energy future.

During the visit on Tuesday, Grant Shapps visited a power station, a critical part of Ukraine’s national infrastructure, that has been badly damaged by Russian bombing and is now undergoing repairs.

The Energy Security Secretary was later shown around a kindergarten attended by Nikita, the young son of the family he took in under the Homes for Ukraine scheme, which was also damaged by Russian shelling. The children performed a song before Mr Shapps played them a recorded message from Nikita.

The visit came as the UK announced its intention to provide a £192 million loan guarantee through UK Export Finance (UKEF) – the UK’s export credit agency – enabling UK-headquartered Urenco to supply Ukraine’s national nuclear company, Energoatom, with uranium enrichment services, a vital part of nuclear fuel, which will help power Ukraine.

Once provided, the support will bring the total of the UK’s non-military assistance to Ukraine to nearly £5 billion.

Nuclear power generates over half of Ukraine’s electricity and the UKEF support announced today is a move towards continuing to supply much-needed power as Ukraine defends itself and recovers from Russian aggression. The support will strengthen Ukraine’s energy security and further isolate Putin by helping the country maintain its independence from Russian nuclear fuel.

Urenco, renowned for nuclear enrichment services, has been a supplier to Energoatom and Ukraine since 2009. The support announced today will enable the further supply of services, with a significant portion of the deliveries coming from the UK – supporting specialist manufacturing jobs in the North West and Wales and the Prime Minister’s priority of growing the economy.

Energy Security Secretary Grant Shapps said:

Our support for Ukraine is unwavering in the face of Putin’s barbaric invasion – the UK continues to stand with Ukraine as they repel Russian attacks and rebuild their country.

Being here on the ground, it’s truly remarkable witnessing first-hand the sheer courage, resolve and gritty determination of the Ukrainian people.

Putin has used energy as a weapon of war: the action today to support nuclear fuel deliveries will help Ukraine end their reliance on Russian supplies and bolster their energy security.

Urenco CEO Boris Schucht said:

We remain deeply concerned about the ongoing developments in Ukraine and our thoughts are with the people suffering as a result of the conflict.

Since the start of the invasion, we have provided support to our customer, Energoatom, and its employees, and increased our supply of nuclear enrichment services to help provide energy independence and security of supply in Ukraine.

We are actively discussing longer term supply with Energoatom and are ready to play our part in supporting their future.  We have the capacity to meet current demand for uranium enrichment services and options to increase this to provide an enhanced offering globally.

Collaboration from governments, such as in the UK with this agreement, is critical to facilitate this, as well as with customers and the wider nuclear industry, and we will continue to do all we can to play a valuable role.

During the visit, the Energy Security Secretary met Ukraine’s Deputy Prime Minister Oleksandr Kubrakov and Minister for Energy German Galushchenko to discuss the UK’s support for Ukraine recovery.

Mr Shapps’s visit also comes just days before Ukraine celebrates its Independence Day, celebrating its independence from the Soviet Union in 1991.

In Kyiv, Grant Shapps met Energoatom’s President Petro Kotin to discuss Urenco’s vital role in supplying nuclear fuel to Ukraine. The Energy Security Secretary also met other Ukrainian energy company leaders to discuss their critical efforts in keeping the lights on for the Ukrainian people and in the recovery.

Today’s news follows the G7 Energy Ministers’ meeting in Sapporo Japan, at which the UK, US, Canada, Japan and France agreed a new nuclear fuel alliance to leverage their respective resources and capabilities of each country’s civil nuclear power sectors to undermine Russia’s grip on supply chains and displace Putin from the international nuclear energy market.

Urenco is the only uranium enrichment company in the UK and is a key part of the government’s plans to rapidly expand nuclear power to provide up to a quarter of all the country’s electricity by 2050, through supporting a resilient nuclear fuel supply chain for the UK and its key international partners.

UKEF support will be provided through a back-stop / guarantee with funds released by partner banks once financial terms are agreed.