Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 9 May 2023.

The Net Zero Council will support industry to help cut their emissions and develop greener practices.

The leaders of some of the world’s leading banks, energy companies, technology giants and finance firms are among those to have attended the first-ever meeting of the Net Zero Council today (Tuesday 9 May 2023).

Co-chaired by Energy Minister Graham Stuart and Coop Group chief executive Shirine Khoury-Haq, the Council will support industry to help cut their emissions, and develop greener practices – as well as delivering on the government’s priority to grow the economy by finding ways to ensure British businesses can benefit from the UK’s world-leading position in renewable technologies and achieving net zero, and export their expertise globally.

Siemens, SSE, HSBC and NatWest as well as Lloyds of London are among those on the Council, and will be meeting on a quarterly basis to ensure businesses are a key part of achieving net zero.

Energy Minister Graham Stuart said:

The Net Zero Council provides the high-level forum for government, business and finance leaders to work together to unlock the opportunities of the green transition.

Tackling emissions can make businesses more energy efficient, improve UK energy security and, in turn, cut costs. It can open up opportunities to export UK developed solutions around the world, expand UK market share and create jobs.

The UK has cut its emissions more than any other major economy and the Net Zero Council – meeting today for the first time – will ensure that leaders of UK businesses can help guide government and vice versa so that our environmental leadership translates into economic advantage.

The Net Zero Council includes some of the most senior business and finance leaders in the country. I am grateful that such extraordinary people are prepared to contribute their knowledge, experience and talent for the benefit of both this country and future generations.

In 2020 the UK was estimated to already have over 400,000 jobs in low carbon businesses and their supply chains across the country, with turnover at £41.6 billion. Over 80,000 green jobs are currently being supported or are in the pipeline because of new government policies since 2020, with that expected to increase to as many as 480,000 in 2030.

The new Council discussed the UK’s already world-leading position on net zero and the importance of building one coherent voice across government, finance and business to support the UK’s key sectors in the net zero transition.

Construction, manufacturing, retail and water and waste were identified as priority sectors to support and focus on, alongside the UK’s world-class university and R&D sectors, with capabilities of building cutting-edge technologies of the future, such as green aviation, hydrogen, CCUS and batteries.

The key objectives of the council are:

• working to ensure sectors and companies have a pathway to net zero, including looking at the barriers and connections across sectors
• leading a systematic review of the financing challenges and the respective roles of government, industry and the financial sector in addressing them
• identifying key challenges facing SMEs up and down the country in reducing their carbon footprints and supporting their transition with new information and advice

Co-op Group CEO, Shirine Khoury-Haq, said:

We are in the grip of a climate crisis of humankind’s making and this is the single most important issue that the global community faces. It is vital that all businesses actively contribute to the Net Zero journey with vigour, as failure to seize this opportunity simply cannot be an option.

I look forward to working with government – who have a role too – in driving industry to go further, as it’s clear we must all reduce carbon emissions at a faster rate.

The press release issued by the Department for Energy Security and Net Zero on 9 May 2023.

Companies licensed to drill in North Sea to report findings to regulator in new powers brought forward in Energy Bill amendment.

A ‘treasure map’ of what lies beneath the North Sea will be created to help the UK become a world leader in carbon capture and storage.

Companies already at the forefront of this technology and licensed to drill in the North Sea will have to report what they find to the regulator, which will develop the most comprehensive picture yet of the geological area’s make-up.

This information can then be used to unlock the UK’s huge potential by quantifying for investors how much carbon capture and storage could be possible. This could attract more companies to the UK, supporting as many as 50,000 green jobs by 2030, helping to grow the economy and delivering on the Prime Minister’s priorities.

The government intends to bring forward these new powers for the North Sea Transition Authority in an amendment to the Energy Bill, which had its Second Reading in the House of Commons today.

The Energy Bill was introduced to Parliament on 6 July 2022. It will deliver a cleaner, more affordable, and more secure energy system over the long-term for the UK, while liberating private investment in clean technologies.

Secretary of State for Energy Security and Net Zero Grant Shapps said:

The UK is in prime position to become a world leader in carbon capture and storage – a whole new industry that could boost our energy security, help cut our own emissions and those of our European neighbours and create thousands of jobs for the future.

By working with the brightest and best who are already out in the North Sea, we can grow our economy by building the treasure map needed to unlock the full potential of this geological goldmine.

Minister for the Energy Bill, Nuclear and Networks, Andrew Bowie said:

Russia’s illegal war in Ukraine has laid bare the need to transform our energy system, and our landmark Energy Security Bill will mean homes and businesses across the UK benefit from a cleaner, more affordable and more secure energy system.

With security at its heart, the Bill is the most significant piece of energy legislation in a decade and puts the UK on the path to cleaner electricity by ramping up carbon storage and our technologies of the future.

Stuart Payne, North Sea Transition Authority Chief Executive, said:

Carbon storage is essential to reaching net zero, and the industry requires a wealth of reliable information to select sites to store millions of tonnes of greenhouse gases.

The NSTA welcomes these new powers to collect this vital data and share it with the industry as it leads the orderly transition and provides thousands of skilled jobs.

Carbon Capture and Storage involves separating carbon dioxide from industry and storing it safely under the seabed in spaces left by oil and gas extraction. Thanks to the geological make-up of the UK, this country is almost uniquely placed to benefit from this and create a whole new industry.

Estimates suggest that there may be enough space underneath the UK’s oceans – including its old oil and gas fields – to store up to 78 billion tonnes of carbon dioxide – the equivalent to the weight of around 15 billion elephants, and as much carbon dioxide as produced by up to 6 million cars on the road.

As well as helping cut the UK’s own emissions, this potential is believed to be so considerable that this country could also help other nations using carbon capture and storage – including other European countries – by storing their carbon emissions too.

Under plans announced in Parliament today, the government plans to grant the North Sea Transition Authority, as a carbon storage regulator, powers to obtain information and samples from those who have a licence already to store carbon.

These will give the information needed about the geological features of hidden underground spaces underneath the North Sea that have already been mapped. This will help develop an encyclopaedic knowledge about what lies beneath the waves and confirm the likely scale of the industry this could create, helping to encourage private investment.

UK government Minister for Scotland John Lamont said:

Expanding carbon capture and storage forms a vital part of our Net Zero ambitions. The new measures introduced today will propel that sector forward, while supporting up to 50,000 jobs to benefit Scotland and the whole of the UK.

Not only will this accelerate our transition to using cleaner, greener energy and enhance our energy security but it will also bring a welcome economic boost to aid our priorities of reducing debt and halving inflation.

Other forthcoming amendments to the Energy Bill announced by the government today:

• backing Energy Intensive Industries (EIIs), such as those in the steel sector, by introducing a compensation scheme that will lower the costs they EIIs have to pay to use the electricity grid. This will bring key UK businesses in line with global competitors and help make the UK one of the most attractive places to do business as part of delivering on the Prime Minister’s plan to grow the economy
• setting out the statutory role of the new nuclear body Great British Nuclear to carry out the long-term mandate the government intends for it in support of the commitment to unleashing the new generation of new nuclear for it to comprise up to 25% of the UK’s energy supply by 2050
• plans to develop new business models to encourage investment in the transport and storage of hydrogen. This will be key to boosting the UK’s future energy security

Business and Trade Minister Nusrat Ghani said:

Energy-intensive industries like steel are hugely important to our economy. This measure will cut costs and help ensure they can bring high-quality jobs and investment into the UK.

This support will mean that these key industries stay in line with their global competitors, helping deliver on the Prime Minister’s priority to make the UK the most attractive place to do business and grow our economy.

The Energy Bill first entered Parliament in July last year and commits to providing a cleaner, more affordable, and more secure energy system by:

• leveraging private investment in clean technologies
• reforming the UK’s energy system so it is fit for the future
• ensuring the safety, security and resilience of the UK’s energy system

The press release issued by the Department for Energy Security and Net Zero on 9 May 2023.

Energy intensive business across the UK receive government support to become more energy efficient.

Factories producing some of the country’s best-known beers, cereals, soft drinks and cars will receive government support to reduce their energy costs and cut carbon emissions.

Heineken, Kellogg’s, Toyota and Britvic are among businesses across the UK to be awarded a share of £24.3 million government funding to help clean up their manufacturing processes and improve their energy efficiency.

The Industrial Energy Transformation Fund (IETF) supports businesses using high amounts of energy to reduce their fossil fuel using innovative low-carbon technologies. This will help companies save on their energy costs, which in turn will safeguard British jobs and help grow the economy – one of the government’s 5 priorities.

• Heineken is receiving £3.7 million to upgrade their Manchester Brewery, including installing technology to recover waste heat from the refrigeration systems used to cool their beer
• Toyota in Derby is receiving over £282,000 to introduce new airless paint sprayers, which use static electricity instead of air, to reduce the amount of energy they need
• Britvic Soft Drinks will use £4.4 million to implement new technologies, including a heat recovery system and Low Temperature Hot Water network, at its site in east London, where it produces drinks such as Tango and Robinsons
• Kellogg’s in Wrexham will receive funding for a study assessing the possibility of recovering the waste heat from their cereal manufacturing processes to reduce their gas usage
• Tate and Lyle Sugars, which supplies nearly half of all the sugar and syrup on UK supermarket shelves, is receiving over £71,800 to explore how to reduce natural gas use at their Thames Refinery

Other recipients include Ingevity UK in Warrington, which will receive £2.6 million for hydrogen ready natural gas fuelled boilers at their chemicals plant, Natural World Products in Dunmurry, a producer of peat-free composts and soil conditioners, is receiving nearly £300,000 to replace diesel-powered plant equipment with electric kit, and Breedon Cement is receiving over £231,000 for a feasibility study on using carbon capture technologies at their site in Hope, Derbyshire.

Energy-intensive industries are responsible for 11% of the UK’s total emissions and represent over 70% of UK industrial emissions. While the UK is making excellent progress on the road to net zero, having cut emissions by 48% between 1990 and 2021 – decarbonising faster than any other G7 country – it is estimated that industry will need to cut their emissions by two thirds by 2035 for the UK to achieve its net zero target.

Minister for Energy Efficiency Lord Callanan said:

We are leading the world in reaching net zero, having cut emissions by 48% – but to keep up this progress and achieve our green goals, we’ve got to transform our industrial sectors, as some of the industries most critical to our economy are also those with the highest emissions.

Today, we’re backing them with government funding to use the latest technologies to cut their emissions and their reliance on fossil fuels – helping to future-proof these industries as we grow our green economy.

This will not only cut their energy costs but also boost their competitiveness on the world stage, helping them thrive and protecting the thousands of jobs they offer across the country.

Matt Callan, Senior Director Supply Chain at Heineken UK, said:

We are proud to have ambitious targets when it comes to reducing our carbon footprint, within both our own operations and across our entire value chain. For over 150 years, we have been passionate about making a positive impact and more than ever it is clear that there is no time to waste in taking action to reduce carbon emissions.

This investment and IETF funding will enable us to act faster, and with the commitment and passion of our colleagues and partners, will help us raise the bar at our Manchester Brewery to brew our beers in a more sustainable way.

The project will make a significant contribution on our journey to carbon neutrality and provide us with the learnings to reapply across our other sites as we continue our journey to brew a better world.

Phil Makin, Technical Development Manager at Kellogg UK said:

The Industrial Energy Transformation Fund is enabling our Wrexham site to unlock future sustainability savings and benefits, whilst driving down our overall carbon footprint and helping towards Kellogg’s 2030 carbon neutral target.

Sarah Webster, Britvic’s Sustainable Business Director, said:

We are passionate about delivering on our ambition to be net zero by 2050, and we are pleased to have reduced our direct emissions by over 30% since 2017.

We want to go further faster, but we can’t do it alone. Alongside our sustainable investment programme, this IETF grant will help us reduce our carbon emissions at our much-loved London site by a further 50%.

This will benefit our employees, the local community, our customers and consumers who can feel reassured that we take our environmental responsibilities seriously.

A total of £289 million is being made available to businesses through the IETF up to 2027 and today’s allocations take amount awarded under the scheme so far to £61.4 million.

Today’s announcement builds on the wide-ranging support that has been made available to energy-intensive industries. This includes:

• businesses have been supported throughout the winter with £5.6 billion of support, enabling some to only pay around half of the predicted wholesale energy costs
• the Energy Bill Relief Scheme has provided a discount on non-domestic (business, public sector and voluntary sector organisations) gas and electricity unit prices; this 6-month scheme expired in March 2023
• the Energy Bill Discount Scheme started on 1 April 2023; the new scheme will mean eligible UK businesses and other non-domestic energy users may receive a discount on high energy bills until 31 March 2024
• the Energy and Trade Intensive Industries (ETII) discount will provide a higher level of support to businesses and organisations in eligible sectors
• the government has provided over £800 million since 2013 to help industrial sectors with energy costs, with many businesses able to bid for competitive funds of over £1.5 billion to support them going green

The Industrial Energy Transformation Fund is one of many schemes that form part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, alongside the wider ambition for the UK to move towards greater energy independence.

Full list of recipients are as follows:

• Ardagh Glass Limited in Doncaster is receiving £1.7 million for their Doncaster Efficient Furnace Project, which will develop a brand-new container glass production furnace at the facility
• Mitsubishi Chemicals UK in Hull is receiving over £3.1 million to install state-of-the-art technology which will combust waste gas to generate energy
• Naylor Industries in Barnsley, a specialist clay pipe manufacturer, is receiving over £73,100 to explore re-using waste heat from the exhaust gases of their kilns, to make their manufacturing process more energy efficient
• Wienerberger Limited in Doncaster is receiving over £220,000 to install a more efficient energy and heat recovery system, including an electric heat pump, to replace gas oil and generate no carbon emissions at their concrete roof tile factories
• Heineken UK is receiving £3.7 million to upgrade their Manchester Brewery, including installing technology to recover waste heat from the refrigeration systems used to cool their beer
• Basell Polyolefins UK is receiving over £1.12 million to reduce natural gas usage at their plastics plant in Carrington, Greater Manchester
• Cargill in Manchester is receiving over £1 million for a project improving the energy efficiency and reducing emissions from their glucose manufacturing process, including through installing electric heat pump technology
• Ingevity UK in Warrington is receiving over £2.6 million to replace the current boiler systems at their chemicals plant with new hydrogen ready natural gas fuelled boilers
• European Metal Recycling in Liverpool is receiving over £390,000 to install new equipment to make their metal shredding process more efficient
• Rock Chemicals Limited in Warrington is receiving over £100,000 to install technology that blends chemicals using ultrasound instead of being powered by diesel
• Weir Minerals Europe Limited in Todmorden, Lancashire, is receiving over £137,000 to carry out a study on improving the energy efficiency of their foundry at Todmorden by recovering and reusing waste heat
• AB Inbev UK in Preston, makers of Budweiser, is receiving over £61,500 to carry out a study on using a heat pump to reduce carbon emissions from their brewery
• Magnavale Limited in Chesterfield is receiving nearly £372,000 to install a cutting-edge refrigeration system for food products that uses less energy than traditional systems
• Breedon Cement in Hope, Derbyshire is receiving over £231,000 for a feasibility study on using carbon capture technologies at their Hope site
• Lhoist UK Limited is receiving over £92,000 for a decarbonisation study at their Hindlow plant, near Buxton in Derbyshire, which manufactures high-quality lime
• Toyota UK in Derby is receiving over £282,000 to introduce new airless paint atomisers for their automotive site, which aims to reduce the amount of energy required for their painting processes by reducing the spray booth size and equipment
• Pioneer Foods Limited, a cereal manufacturer in Wellingborough, Northamptonshire, is taking forward 3 different projects, with grants of over £27,000, £29,000, and £136,000 respectively; the projects include exploring reusing waste wheat products as a biomass fuel, installing a biomass combined heat and power system, and improving the energy efficiency of their ovens
• Tate and Lyle Sugars is receiving nearly £72,000 for a study exploring how to reduce natural gas use – and therefore also carbon emissions – at their Thames Refinery in East London
• Britvic Soft Drinks in London is receiving £4.4 million to implement the latest low carbon technologies at its production site at Beckton where it makes drinks such as Tango and Robinsons; improvements will include using a heat recovery system, and a new Low Temperature Hot Water network
• Ibstock Brick Limited, a leading UK manufacturer of clay and concrete building products in Pullborough, West Sussex is receiving over £241,000 for technology that will reuse waste heat to reduce their energy usage
• GKN Aerospace Services in Filton near Bristol is receiving over £231,000 for their Sustainable Transformation of Emissions for Aerospace Manufacturing (STEAM) project investigating energy efficiency technologies that can be implemented at their Filton site
• Kellogg’s in Wrexham, North Wales is receiving £19,000 for a study assessing the possibility of recovering the waste heat from their cereal manufacturing processes to reduce their gas usage
• Natural World Products (NWP) in Dunmurry, a producer of peat-free composts and soil conditioners, is receiving nearly £300,000 for fuel switching projects, replacing diesel-powered plant equipment with more modern and cutting edge equivalents that are fully powered by electricity
• FP McCann Limited is receiving £3.39 million for energy efficiency improvements of the crushing and concrete manufacturing process at its Craigall Quarry in Kilrea

The press release issued by the Department for Energy Security and Net Zero on 26 April 2023.

Energy and trade intensive businesses as well as heat network operators can from today apply for further support.

Applications have now opened for energy and trade intensive sectors that are most affected by the unprecedented rise in global energy prices to claim further discounts on their bills between April 1 2023 and 31 March 2024 – helping deliver on the government’s priority to halve inflation.

Ceramics and textiles are among the wide range of sectors potentially in line to benefit. These companies use high amounts of energy to deliver their goods, but also are exposed to strong international competition, meaning they cannot raise their prices to cover the increase in costs they have faced.

Ministers are today urging companies to check their eligibility and submit their applications at the earliest opportunity, as the government continues its unprecedented support package that has protected businesses and as of April has saved them £5.9 billion on energy costs – over £30 million a day.

Minister for Energy Consumers and Affordability Amanda Solloway said:

We are beginning to see light at the end of the tunnel for global energy prices as Putin’s grip on the market weakens – but our vital energy and trade intensive industries remain uniquely exposed to these challenges.

We stand firmly behind British business and that’s why we’re protecting them with an additional offer of support so they can continue to thrive. I urge businesses to check their eligibility and submit an application right away so they can get the help they need.

Rob Flello, Chief Executive of the British Ceramic Confederation, said:

We welcome the fact Government has recognised the on-going difficulties that the ceramics sector and other energy intensive industries are facing, and hope energy prices return to sustainable levels. We look forward to a smooth application process that recognises the variety of corporate structures amongst energy intensive businesses.

The offer is part of the government’s new Energy Bills Discount Scheme, launched this month, which will continue to automatically give businesses across the UK money off their energy bills – as wholesale energy prices fall to the lowest level since before Putin’s illegal invasion of Ukraine.

Businesses are advised to check gov.uk as soon as possible to find out their eligibility and what they need to do to apply. Discounts could be reflected in bills from as soon as June, with support backdated to 1 April. This could save some around 20% on predicted wholesale energy costs.

Heat networks with domestic customers can also now receive a new, sector-specific support rate to make sure households do not face disproportionately higher bills compared to customers supported by the Energy Price Guarantee. Heat suppliers will need to apply for this rate and are legally obligated to pass on the discount to their customers.

This is just one of a range of ongoing schemes supporting households and businesses with energy costs at this time – which the government is urging all eligible customers to apply for and take full advantage of.

The Non-Domestic Alternative Fuel Payment scheme is providing top-ups starting at £750 for organisations using large quantities of kerosene heating oil, such as such as farms, hotels, charities and public buildings like schools and hospitals. Organisations have until 28 April to apply for this support via gov.uk.

This scheme is also offering £150 payments to organisations using alternative fuels. A minority of those eligible will also need to apply for this extra support by 28 April if they have not received payments automatically through an electricity supplier.

The press release issued by the Department for Energy Security and Net Zero on 25 April 2023.

Government calls on prepayment meter users to claim bills support by redeeming their Energy Bills Support Scheme vouchers.

Households on traditional prepayment meters are being urged by the government to redeem their energy bill support vouchers, with £160 million remaining to be claimed.

Prepayment meter customers have so far claimed £620 million under the government’s Energy Bills Support Scheme (EBSS).

New figures published today show that more than £780 million in EBSS vouchers have been sent to households, with nearly 80% redeemed by customers.

These vouchers allow eligible customers, often in low-income homes, to access vital discounts of up to £400 on their energy costs, which direct debit customers will have automatically received this winter.

Consumer Energy Minister Amanda Solloway has urged anyone who has not yet redeemed their prepayment meter vouchers to do so now, with the scheme remaining open until 30 June. Customers can redeem the 2.4 million outstanding vouchers at their local Post Office or PayPoint.

The EBSS, together with the cap on energy prices, saw the government cover half of a typical household energy bill over the winter – driving forward the government’s priority to halve inflation. Last month the government also announced an extension to the Energy Price Guarantee, meaning by the end of June a typical household will have saved £1,500 on their energy bill – while wholesale prices continue to fall.

Minister for Energy Consumers and Affordability Amanda Solloway said:

Putin’s illegal war on Ukraine had a massive impact on global energy prices and with it, people’s bills.

The government stepped in to provide vital support to households across the country, with £780 million in support delivered to prepayment meter customers. But there’s still £160 million of that yet to claim which will make a huge difference.

Even as the warmer weather sets in I urge anyone on a traditional prepayment meter to act now if they haven’t redeemed their voucher.

Nick Read, Chief Executive of the Post Office said:

We’re urging people not to miss out on this vital support from the government before the Energy Bills Support Scheme closes at the end of June. Claiming your voucher at the Post Office is really simple, just bring your voucher, your energy pre-payment key or card and the ID specified in your voucher letter and we will redeem the voucher for you at the counter. It’s important to check any post you have at home to ensure you haven’t missed any vouchers. They are valid for 3 months but if you have expired vouchers you should contact your electricity supplier and ask for a new one to be sent out.

Under the Energy Bills Support Scheme more than £11.4 billion went to 28 million households across the UK to keep costs down over the winter – the equivalent of £500,000 a day.

Households who do not have a direct relationship with an energy supplier or use alternative fuels – such as heating oil, LPG and biomass – to heat their homes are also being urged to take full advantage of government support, as a number of schemes close on 31 May, meaning from Monday they’ll have just a month to claim.

Customers in these households can apply for:

• the Energy Bills Support Scheme Alternative Funding which provides equivalent £400 payments to households who do not have a domestic electricity supply and were not eligible to receive the Energy Bills Support Scheme automatically. Eligible applicants include partially or wholly self-funded care homes residents and residents of park homes. These households must apply either via GOV.UK or the contact centre helpline by 31 May 2023
• the Alternative Fuel Payment Alternative Funding scheme which supports households that use fuels such as heating oil, LPG and biomass as their main heating source but did not automatically receive £200 of support from an electricity supplier. Eligible applicants must apply via GOV.UK or the contact centre helpline by 31 May 2023

Today’s figures on EBSS vouchers show that for the fifth month in a row London had the lowest redemption rate, with a third of vouchers still unused at the end of February. Around 26% of vouchers in both Scotland and the South East of England are also yet to be used.

The government has urged suppliers and consumer groups to continue to make the most of this data and pinpoint help to where it is most needed, with some going door-to-door to get information out to these households.

Londoners also benefitted from government pop-up events to help explain how they can access the support, held in partnership with Citizens Advice and the Post Office. This came as part of a targeted government information campaign, which saw adverts run on community radio, social media, national magazine titles, as well as roaming billboard vans that have been popping up in towns and cities across the country.

The press release issued by the Department for Energy Security and Net Zero on 24 April 2023.

LionLink power line between UK and Netherlands will deliver enough electricity to power more homes than Manchester and Birmingham combined.

The world’s largest multi-use electricity power line will be built under the North Sea, boosting UK energy supplies with enough to power 1.8 million homes – more than Birmingham and Manchester combined.

The new LionLink will connect the UK and the Netherlands with offshore wind farms, providing clean affordable and secure energy to Britain which will help cut household bills and drive Putin’s Russia further out of the energy market.

The cross-border electricity line will be only the second of its kind in the world, with the first having been built by Germany and Denmark. However, it will be able to carry more than 4 times the amount of electricity as its predecessor – making it the largest of its kind in terms of capacity anywhere in the world.

While normal interconnectors only connect 2 countries, the multipurpose LionLink will join the UK and Netherlands to each other as well as simultaneously with offshore wind farms at the heart of the North Sea.

The government is announcing the innovative project between the UK and the Netherlands as Energy Security Secretary Grant Shapps leads a British business delegation to the crucial North Sea Summit in Belgium today, aiming to boost our collective energy security through new renewable energy and interconnector projects.

This is part of the government’s efforts to work with business to grow the economy, one of the Prime Minister’s 5 priorities. Boosting clean energy not only helps create better paid jobs across the country but also strengthens economic security by reducing reliance on foreign gas supplies.

The summit will see 9 countries meet in Ostend to agree ambitions for building future offshore wind farms. While there, the Energy Security Secretary is also expected to sign a historic agreement with Denmark to boost trade in cheaper, cleaner energy.

Energy Security Secretary Grant Shapps said:

Today’s historic deal with the Netherlands connects our two countries together through this exciting feat of innovation and engineering – the largest of its kind in the world which will provide enough electricity for more homes than in Manchester and Birmingham combined.

Together with the strong ties we have with our northern European neighbours united today at the North Sea Summit, we are bolstering our energy security and sending a strong signal to Putin’s Russia that the days of his dominance over global power markets are well and truly over.

I’m proud to have the best of UK energy firms and organisations with me, flying the flag for British business and demonstrating our world-leading expertise in cleaner, cheaper and secure renewable technologies – helping deliver on one of our 5 priorities to grow the economy.

Ben Wilson, President National Grid Ventures, said:

Connecting wind farms to multiple markets simultaneously is a game changer for energy infrastructure and brings us one step closer to realising the enormous green energy potential of the North Sea.

Not only can we deploy every spare electron where it is needed most, we can help to reduce the impact of infrastructure on coastal communities.

We now need the right political, legal and regulatory framework to make it happen and establish a mutually beneficial North Sea grid to deliver a cleaner, fairer, more secure and more affordable energy future for British and European consumers.

The countries attending today’s summit alongside the UK are Belgium, Denmark, France, Germany, Ireland, Luxembourg, Norway and the Netherlands

The new LionLink will carry 1.8GW of electricity, compared to Germany and Denmark’s Kassø-Frøslev (Kriegers Flag), which carries 0.4GW.  It will be developed by National Grid Ventures and TenneT and will be operational by the early 2030s.

This builds on the 8.4GW interconnector capacity that the UK has – and LionLink alone will increase that by up to a fifth, meaning more clean and affordable power for UK homes and businesses.

This increased interconnectivity also means LionLink will be good both for the UK’s coastal communities and the environment by reducing the need for further onshore construction and visible infrastructure, as well as lessening the impact on the North Sea’s wildlife.

Britain’s world-class innovation, knowledge and skills within the North Sea energy sector is expected to bring £20 billion a year of investment to the UK’s coastal regions and create 40,000 skilled green jobs to Britain.

Manon van Beek, CEO of TenneT, said:

It is our conviction that offshore hubs configured in a meshed DC grid must form the backbone of the North Sea powerhouse.

This is a view that is increasingly shared, and for us, it is more than a vision of the future.

In fact, we are already doing it by kicking off this ground-breaking LionLink project right now. It is a first step and a great opportunity to learn as the offshore grid takes shape.

Minister Rob Jetten, Climate & Energy for the Netherlands:

With the North Sea becoming the largest supplier of green electricity for the Netherlands and large parts of Europe, we are ready to expand the interconnection between the 2 countries. LionLink provides close to 2 gigawatts of electricity to both countries, enough to power 2 million households.

This new connection further boosts energy security and energy independence in Europe. Close collaboration on offshore wind energy and interconnection amongst the North Sea countries is imperative.

So in case there is a surplus of wind generated electricity, it can be shared instantly to locations with a shortage of power, and vice versa.

The Energy Security Secretary is also expected to sign a Memorandum of Understanding between the UK and Denmark today, which will ensure further collaboration on the transition from fossil fuels to renewable technologies – offshore wind, especially.

The press release issued by the Department for Energy Security and Net Zero on 17 April 2023.

Government seeking views on introducing Contracts for Difference reforms rewarding applicants for including factors not only based on price in projects.

A major reform to the government’s flagship renewables scheme that could help drive further investment in renewable energy deployment and improve energy security is being explored in plans set out today (Monday 17 April).

The Contracts for Difference (CfD) scheme is the government’s mechanism for supporting new British low-carbon electricity generation projects, such as offshore wind and solar developers, and along with FIDER, an early form of the scheme, has awarded contracts to new low carbon projects in Britain with a total capacity of 26.1GW.

The competitive nature of the scheme has already proven successful at placing downward pressure on prices since the first auction was held, with the per unit (MWh) price of offshore wind dropping by almost 70% between the first auction in 2015 and the latest in 2022.

Currently, Contracts for Difference are awarded based on the bid price submitted by renewable energy generating stations, such as an offshore wind farm – the aim being to increase deployment and ensure good value to electricity consumers and, over time, drive down costs.

The government is now seeking evidence and views about reviewing applications not just on their ability to deliver low-cost renewable energy deployment, but also based on how much a renewable energy project contributes to the wider health of the renewable energy industry.

Read and respond to: Introducing non-price factors into the Contracts for Difference scheme: call for evidence.

These reforms could see applicants considering overall costs alongside other ‘non price factors’ – such as supply chain sustainability, addressing skills gaps, innovation and enabling system and grid flexibility and operability – when submitting their bids, which could help drive investment in the sector, grow the economy and boost the country’s energy security.

More investment in supply chain sustainability, for example, would help to reduce its carbon impact and access the resources and materials it needs to deploy sustainability at scale in the longer term. Investment to address the skills gaps would help to train the technicians needed to deploy ever larger renewable energy generation stages.

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

Our flagship Contracts for Difference scheme has been hugely successful in supporting British low-carbon electricity generation, while also driving down costs for the benefit of consumers.

But we want to go further to ensure we maximise the scheme’s potential to improve energy security and ensure renewable energy developers can make the necessary investment in supply chains and innovation, which will ultimately make for a stronger sector and help our economy to grow.

This potential reform to the scheme to introduce non-price factors presents a solution to grow the renewable energy supply chain as we accelerate our energy transition plans to power more of Britain from Britain.

This Call for Evidence is part of our work to continue to evolve the CfD scheme as we consider long-term market arrangements through the Review of Electricity Market Arrangements (REMA).

Building a more secure energy future with thriving green industries will also have the knock on effect of helping to deliver on our promise to grow our economy and create good jobs across the country, with billions of pounds in private investment and 68,000 green jobs supported since late 2020.

The government is exploring introducing non-price factors into the CfD auction allocation process following recommendations made in Chris Skidmore’s Net Zero Review and the report earlier this month from the Offshore Wind Champion Tim Pick.

If, following this Call for Evidence, appropriate changes to the CfD scheme have been identified and deemed more effective than other potential policy levers, the government will launch a consultation on more detailed proposals.

CfDs have already helped accelerate plans to diversify, decarbonise and domesticate our energy supplies, with the last round (AR4) securing almost 11GW of low carbon capacity – enough to generate sufficient electricity to power 12 million British homes.

Last month, the government committed a further budget of £205 million to the scheme for the fifth allocation round (AR5), confirming another year of significant financial backing by government for green industries and jobs.

Tim Pick, who recently completed his term as the Offshore Wind Champion, said :

I very much welcome this Call for Evidence. As noted in my recent report, price-only CfD auctions have created a strong driver for innovation to drive down costs, but there is a need in the current climate to consider how to better develop new supply chains and associated jobs.

The current global context arguably provides the justification for considering a more nuanced approach as part of a wider package of measures, especially as we seek to seize a first-mover advantage in the deployment of floating offshore wind technology at scale.

Adam Berman, Deputy Director for Advocacy at Energy UK, said:

The Contracts for Difference (CfD) programme has played a key role in ensuring the UK’s position as a global leader in low carbon technologies. But factors such as inflation, commodity price increases, and pressure from international competition mean that the UK will have to continue working hard to pull in the investment required to reach our Net Zero and energy security goals. We welcome the government’s ambition to build on the success of the CfD programme by recognising that the cost of delivering new renewables projects has risen significantly over recent months.

If designed appropriately, the inclusion of new factors in the CfD could improve investment certainty for low carbon projects, boosting energy security as well as ensuring that all parts of the UK benefit from the jobs, skills, and supply chain opportunities these multi-billion pound investments bring.

The press release issued by the Department for Energy Security and Net Zero on 16 April 2023.

Agreement reached at the Nuclear Energy Forum at the G7 in Sapporo, Japan.

An alliance between the UK, US, Canada, Japan and France, aimed at displacing Putin from the international nuclear energy market, has been announced in Sapporo, Japan today.

The five nations will leverage the respective resources and capabilities of each country’s civil nuclear power sectors to undermine Russia’s grip on supply chains. This agreement will support the stable supply of fuels for the needs of today, as well as guarantee the safe and secure development and deployment of fuels for the advanced reactors of tomorrow.

This agreement will be used as the basis for pushing Putin out of the nuclear fuel market entirely, and doing so as quickly as possible, to cut off another means for him to fund his barbaric attack on Ukraine and fundamentally leave Russia out in the cold.

The agreement will also strengthen our respective nuclear energy sectors, which is key to boosting our domestic energy security and bringing down electricity bills for British families. Nuclear fuel is needed to operate nuclear power stations, that provide around 15% of the UK’s electricity supply with an aim for it to make up 25% of our electricity supply by 2050.

Speaking at the G7 Energy Ministers’ Meeting in Sapporo, Mr Shapps said how this, alongside investment in cleaner, cheaper and more secure renewable energy sources, will be a key part of making the UK energy independent.

Within days of the illegal invasion of Russia, the UK acted immediately to place sanctions on the country’s oil, devastating a lucrative revenue stream for the regime.

Today’s agreement at the Nuclear Energy Forum at the G7 in Sapporo will build on this, acting as a springboard for these five countries to make swift progress, ensuring the secure supply of uranium fuel through the development of shared supply chains that isolate Russia. The Energy Security Secretary wants these countries to come together to address dependencies on Russian fuel as the world turns increasingly to nuclear as a source of low-carbon and secure energy.

Energy Security Secretary Grant Shapps said:

The UK has been at the very heart of global efforts to support Ukraine, defeat Putin and ensure neither him nor anyone like him can ever think they can hold the world to ransom over their energy again.

This is the next vital step, uniting with other countries to show Putin that Russia isn’t welcome anymore, and in shoring up our global energy security by using a reliable international supply of nuclear fuel from safe, secure sources.

But this is one side of the equation – the other is the need to invest in clean, cheap and secure energy sources, and our Powering Up Britain plan will do just that.

We must stop being reliant on expensive and imported fossil fuels and focus on smarter energy solutions. The UK is already a world-leader when it comes to renewables, a fact recognised by the investors I have met in the Republic of Korea and Japan this week.

In flying the flag for UK PLC, I want to be crystal clear that the expertise we have from having the four biggest wind farms off our shores is available to support countries looking to invest in their supplies – something that will benefit them, create green jobs and opportunities at home and boost energy security around the world.

And I want us to work ever-closer together with countries like Republic of Korea and Japan as we invest more in nuclear technologies like Sizewell and Small Modular Reactors, opening up opportunities to invest in the UK and with it, the job opportunities in our local communities.

The UK is already taking proactive steps in this space, including through the Nuclear Fuel Fund which launched in January. It will provide up to £75 million to ensure the UK has the fuel production capabilities needed to support a nuclear renaissance, backing the government’s ambition to secure up to 24GW of nuclear power by 2050.

The UK has many decades of expertise in nuclear fuel production, which plays a vital role in supporting the energy security of the UK fleet and those of international partners.

At the summit, all nations also agreed to accelerating the phase-out of unabated fossil fuels – with a particular focus on coal, by agreeing to work together to stop new unabated coal plants being constructed – a G7 first.

This is backed by new collective targets for the use of offshore wind and solar energy – for the G7 to increase offshore wind capacity by 150GW and solar PV to 1,000 GW by 2030.  The UK will account for a quarter of the offshore wind target, which we are already on track to meet.  In addition, the UK has driven forward progress in the phasing out of petrol and diesel cars in the G7, with the group committing to 50 per cent zero emission vehicle sales in cars and vans by 2050.  The UK is already far ahead of this, having committed to phase out the sales of diesel and petrol cars by 2030, and all major manufacturers have committed to selling 100% ZEVs by 2035.

Together, today’s G7 commitments deal a blow to Russia, demonstrating the international resolve to isolate Putin further internationally.  As more countries move away from fossil fuels and towards renewables, this will cut off a vital income stream for his regime once and for all.  It also means the greater use of cheaper, cleaner and more secure energy sources will boost energy independence, shield the UK and others from volatile international fossil fuel markets and – ultimately – cut the cost of supplying power to homes, and therefore people’s bills.

The G7 comes at the end of a week in which Grant Shapps has been in Republic of Korea and Japan, meeting ministers and potential investors to fly the flag for UK PLC – becoming the first Cabinet Minister to visit those countries since negotiations closed on the UK’s accession to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, of which Japan is a member.

The Energy Security Secretary has also been highlighting how other countries can reap the benefits of the UK’s world-leading action in renewable technologies, hiring UK firms to support their efforts to achieve greater energy security and independence.

This would also create even more green jobs and economic opportunities at home and put the country in prime position to make the most of CPTPP membership.

The UK has cut emissions faster than any other G7 country – and last year were ranked alongside the US as one of the top four most attractive markets for renewable energy investment. Nearly 40 per cent of the UK’s power was generated from renewable sources last year.

The press release issued by the Department for Energy Security and Net Zero on 12 April 2023.

Government expands scheme offering households using alternative fuels £200 in energy bills support.

The press release issued by the Department for Energy Security and Net Zero on 12 April 2023.

Government funding awarded to innovative projects that will capture and store renewable energy for later use.

Cutting edge businesses, in locations including Scotland and Nottingham, are set to benefit from a share of £30 million to be at the forefront of designing and testing innovative technology of the future that will modernise our energy system and store renewable energy for later use.

Capturing and storing energy for use when and where it is needed will play an essential role in powering more of Britain from Britain and increasing the country’s energy security. The funding announced today will support these businesses testing and preparing their technologies to be ready for the energy market, encouraging private investment and creating new jobs across the UK.

The nature of renewables means that on windy, sunny days sometimes more renewable electricity is generated than is needed, such as during extended periods of the sun shining or high winds. Energy storage technology will soak up this excess energy for later use, maximising the use of renewable energy, all while boosting energy security and supplying energy to consumers at a lower cost.

Flexibility from technologies such as electricity storage and smart charging of electric vehicles could save up to £10 billion per year by 2050 by reducing the amount of energy and network needed to create a secure, home-grown energy system. Accelerating the uptake of energy storage technology will also mean National Grid can balance the grid by activating storage systems instead of asking certain power generation technologies to switch off, further reducing costs to the taxpayer.

Minister for Energy Security and Net Zero Graham Stuart said:

Storing energy for longer periods is vital to build a robust and secure energy system and ensure that renewable energy is used efficiently. Fortunately the UK has a wealth of pioneering businesses that are making their mark on this industry.

Today we’re backing three UK businesses to make their projects a reality, which will go on to play a role in our country’s energy security.

The winning projects will now go on to fully deploy and demonstrate their technology; they are:

• Synchrostor, Edinburgh, Scotland, which will receive £9.4 million to build a Pumped Thermal Energy Storage (PTES) grid-connected demonstration plant operating at 1MW, with the ability to charge and discharge for a period of 10 hours, longer than current battery technology
• Invinity Energy (UK) Limited, Scotland, which will receive £11 million to develop and manufacture their 7MW, 30MWh 4-hour Vanadium Flow Battery (VFB), the largest in the UK. Invinity will manufacture the 30 MWh VFB at the Company’s factory in West Lothian, Scotland. The location of the plant will be confirmed in due course; and
• Cheesecake Energy Ltd, Nottingham, which will receive £9.4 million to test their FlexiTanker technology which stores electricity using a combination of thermal and compressed air energy storage and uses a reversible air compression / expansion train to charge and discharge. They will then install pilot units at 2 sites within a microgrid development in Colchester.

This announcement follows the £32.8 million funding awarded to 5 UK energy storage projects across the country in November 2022 to create first-of-a-kind prototypes of their technology. A total of £69 million of funding has been awarded so far through this programme, helping to drive innovative technologies such as energy storage.

Today’s announcement follows the launch of the government’s Powering Up Britain plan, showing how the UK will boost the country’s energy security and independence, create green British jobs and stay at the forefront of the transition to net zero.