UK and US announce new energy partnership

• PM and President Biden create a new high-level bilateral group to focus on energy security, efficiency and affordability
• The venture will give further high-level political backing to our accelerated energy transitions and Net Zero commitments
• Over the coming year, US aims to more than double the amount of gas exported to the UK in 2021 to secure supply and reduce price volatility

The UK and US will work together to increase energy security and drive down prices, as part of an initiative announced by the Prime Minister and US President Biden today (7^th December).

Under the new 'UK-US Energy Security and Affordability Partnership', the UK and US will drive work to reduce global dependence on Russian energy exports, stabilise energy markets and step up collaboration on energy efficiency, nuclear and renewables. The initiative will be steered by a new UK-US Joint Action Group, led by senior officials from the UK Government and the White House.

This new partnership follows the Prime Minister and President Biden’s meeting at the G20 Summit in Indonesia, where they agreed to take forward work to address our short-term energy needs and spearhead efforts to speed up our energy transition.

Putin’s war in Ukraine has caused an international spike in energy prices. To help deal with the resulting rise in the cost of living, the group will work to ensure the market delivers sustained increases in the supply of Liquified Natural Gas (LNG) to UK terminals from the US and will collaborate on energy efficiency measures. 

As part of this, the US will strive to export at least 9-10 billion cubic metres of LNG over the next year via UK terminals, more than doubling the level exported in 2021 and capitalising on the UK’s leading import infrastructure. This will be good for both UK and European partners as we look to replenish gas storage next year. To fulfil this shared objective, both governments will work to proactively identify and resolve any issues faced by exporters and importers.

The group will also work to reduce global reliance on Russian energy by driving efforts to increase energy efficiency and supporting the transition to clean energy, expediting the development of clean hydrogen globally and promoting civil nuclear as a secure use of energy.

The Prime Minister said:

“Together the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime.

“We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition. This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all.”

The partnership will build on the work of the UK-US Strategic Energy Dialogue led by energy ministers, with a focus on gas supply, energy efficiency, civil nuclear and clean energy.

On civil nuclear, the partnership will promote nuclear energy as a safe and reliable part of the clean energy transition. This includes deepening global collaboration on nuclear fuels and advanced nuclear technologies.

The partnership will also drive international investment in clean energy technologies, from offshore wind to carbon capture. This will complement the work the UK and US are doing together with G7 partners to support the use of clean and sustainable energy in developing countries through the Just Energy Transition Partnerships.

In tandem with shoring up security of energy supply, the group will exchange best practice and work on measures to increase energy efficiency and reduce demand for gas. It is already estimated that there could be an 8% reduction in demand for gas in the UK this winter. The Joint Action Group will explore policy solutions to enhance this efficiency, building on UK Government initiatives such as the Help to Heat Programme.

The initiative will pursue innovative energy solutions, such as the decarbonisation of the aerospace industry and development of sustainable aviation fuel technologies, collaborative efforts on electric vehicles, and Energy Smart Appliances.

We will also continue our close collaboration on Carbon Capture Usage and Storage, and progress the Clean Hydrogen Mission. The UK and US are already co-leads of the Hydrogen Breakthrough Agenda, a flagship initiative to push forward clean hydrogen internationally.

Notes to Editors

• The first meeting of the Joint Action Group will be held virtually tomorrow (Thursday 8^th December).
• In 2021, we imported 3.9 bcm of LNG from the United States. As part the partnership announced today, the US Government has made a political commitment to strive to supply more than twice has much as 2021 over the next year, supporting commercial contracts and providing the necessary enabling regulatory environment to deliver this.

Joint Statement by Prime Minister Rishi Sunak and President Joe Biden

During this global energy crisis, brought on by Russia’s illegal invasion of Ukraine, it is more important than ever for allied countries to deepen their cooperation to ensure resilient international systems which reflect our shared values.

Working with our allies, the United States and United Kingdom commit to intensify our collaboration to support international energy security, affordability, and sustainability, as Europe reduces its dependence on Russian energy. Our immediate shared goal to stabilise energy markets, reduce demand, and ensure short-term security of supply is underpinned by the longer-term objective of supporting a stable energy transition to achieving net zero emissions by 2050, which in itself will strengthen our energy security.

To this end, we are establishing a Joint Action Group for Energy Security and Affordability to accelerate our immediate cooperation on short-term action to support energy security and affordability in the United Kingdom and across Europe.

The initiative will focus on the following priority areas:

1.  Energy Efficiency and Innovative Energy Solutions

• Underscoring the importance of energy efficiency in bolstering energy security and affordability, partnering to explore market mechanisms, exchange best practices, and policy solutions to increase efficiency, contributing to a projected 8% reduction in end-user demand for gas in the UK this Winter compared to the previous five years. We will explore targeted, data-driven measures that will save customers on their bills and increase efficiency without sacrificing comfort.
• The UK will establish a new Energy Efficiency Taskforce to reduce the UK’s energy consumption from buildings and industry by 15% by 2030 against 2021 levels. The £1.5 billion Help to Heat programme provides energy efficiency upgrades to low-income households, and the UK has committed an additional £6bn in energy efficiency schemes to 2028. Meanwhile, the U.S. is investing more than $25 billion in energy efficiency and renewable energy solutions for low-income communities.
• Recognising the role of demand reduction technologies including, but not limited to: EVs, batteries, heat pumps, and home energy management systems, seeking to expedite deployment of these technologies to consumers.
• Sharing lessons learned on creating competitive markets for these Energy Smart Appliances (ESAs) and best practice as these proposals develop, including assessing the potential for UK-led interoperability standards to be used in the U.S., and vice-versa.

2.  Gas Supply

• Further enhancing U.S. LNG supply to the UK and wider European market by supporting the market conditions for long-term security of supply, recognising the role of natural gas in ensuring near-term energy security, and in particular the significance of UK LNG import infrastructure and interconnection to wider European supply security.
• Working with international partners and industry to strive to ensure LNG volumes of at least 9-10bcm over the next year via UK terminals from the U.S.. To this end, we will look to identify opportunities to support commercial contracts that increase security of supply.
• Committing to maintain an enabling regulatory environment to facilitate continued and increasing supplies, including domestic UK production, and to act on issues raised by stakeholders including in the private sector. We also note that more than double the amount of U.S. export capacity online or under construction has received final regulatory approvals and is pending off-take agreements and final investment decisions.
• Prioritising low-carbon LNG infrastructure by promoting efforts to reduce greenhouse gas (GHG) intensity, incorporating Carbon Capture, Usage and Storage (CCUS) and renewables in production sites where possible, and collaborating to adopt regulatory frameworks to minimise leakage, venting, or flaring from new, modified, or existing infrastructure. Both sides take note of the U.S. Inflation Reduction Act’s Methane Emissions Reduction Program, which will invest $1.55 billion to reduce methane emissions and implement a methane waste fee on major emitting facilities, as well as the ongoing rulemaking process to sharply reduce methane and other harmful air pollution from both new and existing sources in the oil and natural gas sectors via the U.S. Environmental Protection Agency.

3.  Nuclear Cooperation

• Promoting civil nuclear as a safe and reliable part of the clean energy transition, and a secure source of energy, including through ensuring that global supply chains are less dependent on unreliable sources to pursue this objective.
• Working together to deepen global collaboration between like-minded countries on Small Modular Reactors (SMRs) in a way that mutually benefits our respective industries and provide opportunities for UK and US industry to support a resilient and diversified nuclear fuel supply chain.

4.  International Collaboration on Clean Energy

• Continuing close collaboration on CCUS by sharing policies and lessons learned on the multilateral stage to advance global deployment.

The Joint Action Group will be convened by a representative from the offices of the President and the Prime Minister. It will particularly focus on intensifying further commercial and scientific ties between our two countries. It will complement the existing Strategic Energy Dialogue, which is the principal mechanism for collaboration on net zero technologies, financing of nuclear projects, and multilateral initiatives.