Stakeholder reactions to energy security announcement

Downing Street has published stakeholder reactions to the energy security announcement made this morning.

David Whitehouse, CEO Offshore Energies UK said:

“Domestic production is the best pathway to net zero and the UK Government’s commitment to licences is a welcome boost for energy security and jobs. Oil and gas fields decline naturally over time. The UK needs the churn of new licences to manage production decline in line with the maturing basin. There are currently 283 active oil and gas fields in the North Sea, by 2030 around 180 of those will have ceased production due to natural decline. If we do not replace maturing oil and gas fields with new ones, the rate of production will decline much faster than we can replace them with low carbon alternatives.  

“Developing our new carbon capture industry and its high-value jobs needs significant investment from our energy producing companies. This means that the bedrock to success and delivering growth in the economy can only be collaboration between private and public capital. The UK’s skilled offshore workforce, its engineering expertise and its geology have given our nation a unique opportunity to lead the way in building a net zero world.” 

Tom Glover, RWE UK, Country Chair said:

“RWE is delighted that Viking CCS has been awarded Track 2 status for the Government’s Cluster Sequencing Process. RWE is a long-term cluster partner of Viking CCS and is developing two projects that could use this facility, providing firm, secure and flexible low carbon power generation to support our transition to a net zero economy.”

Will Gardiner, Drax Group CEO, said:

“We welcome the Government’s decision to designate Viking as a Track 2 carbon capture utilisation and storage cluster (CCUS). Progressing a CO2 transport and storage network in the Humber represents a significant step toward helping the region meet its Net Zero ambitions and ensuring that it remains a source of high-skilled jobs and energy security for decades to come.

“The announcement shows the importance of CCUS to the Humber and, along with the East Coast Cluster, creates an additional pathway to support our plans for bioenergy with carbon capture and storage (BECCS) at Drax Power Station. We are currently engaged in formal discussions with the UK Government on this project and hope to invest billions in its development and deploy this critical, carbon removals technology by 2030.”     

Dr Nick Cooper, CEO of Acorn lead developer Storegga, said:

"We are thrilled that the Acorn Project has advanced directly into Track-2. Acorn has been progressed by the development partners as the Track-1 reserve since late 2021 and is ready to move promptly to support the decarbonisation of Scotland and the wider UK.

“Today’s news is a defining milestone for us, and the Scottish Cluster. Acorn will be a major contributor towards meeting the UK and Scotland’s carbon reduction targets, able to serve emitters connected by pipeline and ship.

“As Lead Developer, Storegga thanks Acorn partners and Scottish Cluster participants for their support and we look forward to working with Government to deliver the multiple benefits of creating and future-proofing jobs, bringing inward economic investment, developing green-tech industries and, crucially helping decarbonise Scotland and the UK.”

Harbour Energy’s Executive Vice President of Net Zero and CCS Steve Cox said:

“The successful award of Track 2 status to Harbour’s Viking CCS project in the Humber as well as Acorn in northeast Scotland is another demonstration of how we are well positioned to use our existing skills and infrastructure to help develop the burgeoning CCS industry in the UK.

“More widely, the announcement today shows the key role the North Sea oil and gas sector will play in helping to deliver the UK’s carbon capture goals.”

Ruth Herbert, Chief Executive at the CCSA, said:

“We are pleased to see the UK Government pushing ahead with its CCUS deployment programme and selecting the next two CCUS clusters, as time is running out to meet 2030 targets. This CO2 infrastructure is critical to safeguarding the UK’s supply chain security, enabling local industries to continue to thrive whilst reducing their emissions as we transition to a net zero economy.

It is therefore vital that the Government urgently sets out clarity on the process and timeline for selecting carbon capture sites within these ‘Track-2’ clusters and within the previously announced Track-1 cluster expansion.  Billions of pounds of investment is waiting to be deployed to decarbonise these industrial regions, but firm plans are required to secure it.

There are a number of other clusters under development across the country, which is why last year we asked government for visibility of the longer-term CCUS deployment plan. Collectively, CCUS clusters could protect 77,000 current jobs and create a further 70,000 jobs across the UK. Government’s forthcoming vision for the UK CCUS sector needs to be published as soon as possible, to avoid investment flight in those regions that have not been selected today.”

Simon Roddy, Senior Vice President of Shell UK‘s Upstream business, said:

“This is an important step forward for one of the UK’s leading CCS clusters. The Acorn Project is a central part of plans to decarbonise North Sea operations, and to store emissions from other parts of Scottish industry. As Technical Developer, we bring Shell’s global experience of CCS and the delivery of major projects. To stimulate investment in this and other CCS clusters, continued co-operation with governments will be key to finding the most innovative approaches and business models to allow CCS to reach the scale needed to help the UK achieve net zero.”

Alistair Phillips-Davies, Chief Executive of SSE, said: 

“Carbon capture will play a critical role not only in decarbonising the UK’s power system but also in unlocking economic growth and boosting our energy security, and today’s announcement marks a major step forward in its deployment. We know how important it is that the north-east of Scotland and Humber are decarbonised and the decision to support the Scottish Cluster and Viking Cluster shows that there is commitment to doing so.

“Time remains of the essence. Now, we must move quickly to deploy the transport and storage infrastructure which will underpin the rollout of CCS across the chosen clusters. Doing so will allow crucial low-carbon projects – such as our carbon capture project at Peterhead - to be brought forward, supporting the energy transition while providing good, green jobs and enhancing regional economies. The UK has a real opportunity to lead the world on carbon capture if we can accelerate progress and today's announcement provides welcome impetus."

Jon Butterworth, CEO of National Gas, said:

“We are delighted to play an important role in the Acorn project through the planned repurposing of 300km of our existing natural gas pipelines, and the development of 60km of new pipelines, to transport carbon dioxide. CCUS will be critical to the delivery of net zero and repurposing enables a cost-effective transition.”

Linda Z Cook, CEO of Harbour Energy, said:

“Today’s announcement from the Government is an important step forward for the development of the carbon capture industry in the UK and another example of the critical role the oil and gas sector can play in the energy transition.

“It is essential that we continue to move forward with pace on the development of this industry which can create tens of thousands of jobs – the Viking CCS cluster alone could create over 10,000 jobs during construction – and will be vital in supporting the UK to meet its target to capture 30 million tonnes of CO2 by 2030.”

On licenses: Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said:

"What we are expecting to hear today from the PM is very good news for the nation and this region in particular.

"In the midst of a hugely polarised debate around energy - with much of the commentary characterising it as a battle of good versus evil (which it is not) - the Chamber has been making the case for many months that the UK must produce as much of our required supply as possible here, with full control over the regulatory environment in which it is extracted, protecting and creating high value jobs.

"The alternative being that we import an increasing amount of our energy, with the heavier carbon toll and supply risks that shipping it from other parts of the world carries. The latter option makes little economic sense, and even less environmental sense."

On CCUS: Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, welcomed the news, adding that pace is urgently required.

"If we are to achieve our climate targets, the nation needs five scale carbon capture and storage sites operational.

"The Chamber, along with many of our partners and members have been asking the government to prioritise the Acorn CCUS project at St Fergus and what we expect to hear today is fantastic news for the North-east of Scotland.

"At recent conference, the North Sea Transition Authority told us that more than £200billion could be spent on North Sea oil and gas, offshore wind, carbon-capture and storage and hydrogen projects before the end of the decade. And this region is uniquely placed to deliver many of these with our globally recognised energy expertise and supply chains."