UK Government Sets Out Energy Security Strategy With Support for Fossil Fuels, Nuclear
By Jaime Llinares Taboada
The U.K. government on Thursday published details of its new
energy security strategy, which includes renewed support for
oil-and-gas extraction and 120 million pounds ($156.8 million) of
funding for new nuclear power.
The government's strategy aims to accelerate the deployment of
clean technologies, such as wind, nuclear, solar and hydrogen, but
also support the domestic production of oil and gas.
The statement confirms that a new license auction for offshore
oil-and-gas projects will be held this year.
"A licensing round for new North Sea oil and gas projects
planned to launch in Autumn, with a new taskforce providing bespoke
support to new developments--recognising the importance of these
fuels to the transition and to our energy security, and that
producing gas in the U.K. has a lower carbon footprint than
imported from abroad," the government said.
However, this won't have an immediate effect on the current gas
supply crisis in the U.K. and the rest of Europe, Professor John
Underhill from the University of Aberdeen said. "Any gas and oil
production that follows from an exploration licensing round is
years away and so, is not a short-term solution for the U.K.'s gas
supplies," he said.
Downing Street is also setting a new ambition to have an
offshore wind capacity of up to 50 gigawatts by 2030, of which 5
gigawatts would be floating facilities, supported by lower approval
times and overall streamlining.
Moreover, the strategy reaffirms the government's support for
nuclear power, which is intended to meet 25% of the country's power
demand by 2050. The government is launching a GBP120 million Future
Nuclear Enabling Fund this month, and setting up a new body to
bring forward new projects.
It also includes higher hydrogen production ambitions,
consultations to accelerate onshore wind and solar deployment, and
up to GBP30 million for heat pump manufacturing.
"We support the government's commitments in the Energy Security
Strategy to accelerate the deployment of domestic clean power
sources, build a modern energy system, and reduce demand for
volatile international gas," Emma Pinchbeck, chief executive of
industry lobby Energy UK, said.
FTSE 100 paper and packaging firm DS Smith PLC said that the
government's strategy should be more far-reaching. "Diversified
energy is to be welcomed, but the proposed renewable sources, along
with nuclear power, won't deliver lower carbon energy at scale
until 2030 and that is simply too late," Alex Manisty, the
company's head of strategy, said.
Climate organizations and unions, which had been pushing for a
windfall tax on oil-and-gas profits, reacted with skepticism.
Greenpeace said that the strategy fails to tackle soaring energy
bills and take control of the climate crisis. "While there are some
improvements on renewables targets, they have prioritised slow
solutions, dishing out rewards to vested interests in the nuclear
and the oil and gas industries, which won't tackle the cost of
living crisis or reduce our dependence on gas," Greenpeace U.K.'s
head of politics Rebecca Newsom said.
"Energy producers are making more cash than they know what to do
with. A targeted windfall tax could get cash directly into the
pockets of the people in this country who are facing the terrifying
dilemma of heat or eat," Sharon Graham, general secretary at the
Unite union, said.
"Looking beyond the 'aims' and 'ambitions' of this plan, there
are serious questions about the worrying lack of specific
commitments on U.K. jobs," said Gary Smith, general secretary at
the GMB union.
Write to Jaime Llinares Taboada at firstname.lastname@example.org;
(END) Dow Jones Newswires
April 07, 2022 06:37 ET (10:37 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Gráfico Histórico do Ativo
De Dez 2022 até Jan 2023
Gráfico Histórico do Ativo
De Jan 2022 até Jan 2023