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Go Nuclear! Go Gas! NO to CCS! says UK Gov

By: Chris Anderson 25/11/2015 Edited and contributed by 4C Offshore

General

Today the UK Chancellor of the Exchequer George Osbourne gave his Autumn Statement and Spending review today to the UK House of Commons and within it summarised the impact his review would have on the energy sector. In his speech he outlined the Exchequers approach to the Energy sector, the government department budgets affected and tax impacts.

Commitment to small modular nuclear reactors
Creation of the shale gas industry
DECC’s day to day resource budget will fall by 22%.
CCS Abandoned?
Steel and Chemicals permanently exempt from environmental tariffs

George Osbourne stated "Investing in the long term economic infrastructure of our country is a goal of this Spending Review, and there is no more important infrastructure than energy. So we’re doubling our spending on energy research with a major commitment to small modular nuclear reactors.

We’re also supporting the creation of the shale gas industry by ensuring that communities benefit from a Shale Wealth Fund, which could be worth up to £1bn. Support for low-carbon electricity and renewables will more than double.

The development and sale of Ultra Low Emission Vehicles will continue to be supported – but in light of the slower than expected introduction of more rigorous EU emissions testing, we will delay the removal of the diesel supplement from company cars until 2021.

We support the international efforts to tackle Climate Change, and to show our commitment to the Paris talks next week, we are increasing our support for climate finance by 50% over the next five years.

DECC’s day to day resource budget will fall by 22%.

We will reform the Renewable Heat Incentive to save £700 million. We’re going to permanently exempt our Energy Intensive Industries like steel and chemicals from the cost of environmental tariffs, so we keep their bills down, keep them competitive and keep them here.

I can announce we’re introducing a cheaper domestic energy efficiency scheme that replaces ECO.
Britain’s new energy scheme will save an average of £30 a year from the energy bills of 24 million households."

For the Department of Energy and Climate Change this means:

> doubling DECC’s innovation programme to £500 million over 5 years, which will strengthen the future security of supply, reduce the costs of decarbonisation and boost industrial and research capabilities

> funding for an ambitious nuclear research programme that will revive the UK’s nuclear expertise

> a £1.7 billion share of the government’s £5.8 billion International Climate Fund, which will help the poorest and most vulnerable countries decarbonise and adapt to the effects of climate change

> resource savings of 22% by 2019-20 delivered through efficiencies in corporate services and reducing the cost of contracts

In another surprise move at 15:00 GMT there was an announcement at the London Stock Exchange by the UK Government stating "Today, following the Chancellor's Autumn Statement, HM Government confirms that the £1bn ring fenced capital budget for the Carbon Capture and Storage Competition is no longer available. This decision means that the CCS Competition cannot proceed on its current basis. We will engage closely with the bidders on the implications of this decision for them."

Commenting on the UK government’s decision to axe the £1bn grant for developing a new carbon capture and storage (CCS) technology, Energy Minister Fergus Ewing said:

“The UK Government’s decision to scrap its £1 billion Carbon Capture and Storage (CCS) programme is a disgrace. It shows complete disregard for tackling climate change, utter indifference to developing the crucial new technologies that will cut emissions and is another UK Government hammer blow to energy generation in Scotland.

”Just last week the Secretary of State announced an energy strategy heavily reliant on gas, yet the Chancellor has slashed support for the only credible technology which can reduce emissions from large scale gas generation.

“The UK has 30% of Europe’s CO2 storage capacity alongside an oil and gas infrastructure which can be utilised for CCS. The CCS Commercialisation Programme has already been running for 10 years. – had the competition been allowed to run its course, the world’s first commercial scale gas powered CCS plant could have been built in Peterhead creating new jobs, blazing a trail for innovation and potentially attracting significant investment to the UK.

“This should have been a huge industrial opportunity. Instead, the decision to pull the plug on the CCS programme – to meet a deeply flawed austerity agenda – is breathtakingly short-sighted, even for this UK Government.”

SSE issued a statement "Whilst SSE appreciates that being in government involves taking difficult decisions, it is extremely disappointed by today’s announcement that the government is removing all committed public support for the demonstration of Carbon Capture and Storage (CCS) in the UK. SSE believes this decision represents a significant missed opportunity for the UK."

Leader of the Opposition Jeremy Corbyn angrily stated "Cameron's greenest Government ever? He's cut support for solar panels, wind turbines & scrapped Green Deal, increased subsidy for Diesel Generators. Is it any wonder that the chief scientist for the United Nations Environment programme has criticised Britain for going backwards on renewable energy.

It is apparent now that this statement follows last weeks statement by the Energy Secretary Amber Rudd where she signalled her intention to develop a cleaner, more secure energy network by consulting on closing coal fired power stations by 2025 She stated: “One of the greatest and most cost-effective contributions we can make to emission reductions in electricity is by replacing coal fired power stations with gas."

“I am pleased to announce that we will be launching a consultation in the spring on when to close all unabated coal-fired power stations. “Our consultation will set out proposals to close coal by 2025 - and restrict its use from 2023. If we take this step, we will be one of the first developed countries to deliver on a commitment to take coal off the system."

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Go Nuclear! Go Gas! NO to CCS! says UK Gov

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