Recent green energy news illustrates how the new government’s approach to net zero and the environment differs from its predecessor, with renewable energy funding and shipping emission target concerns among the past week’s headlines.
Green shipping concerns
A coalition of British ports has warned that UK shipping could fall behind emission-lowering targets.
Eight shipping trade associations have called for the new government to find a “long overdue” replacement for the funding to facilitate the transition to net zero.
City AM reports these concerns have spiked in response to the ongoing Red Sea Crisis, which has led many ships to increase their speeds, and correspondingly their emissions, to compensate for longer routes around the horn of Africa.
Rhett Hatcher, chief executive of the UK Chamber of Shipping, told the publication: “It is vital to provide the industry and investors with confidence to aid the sector in its drive to reach net zero.”
“To achieve this, we need a multi-year plan, which creates a framework for public and private sector collaboration and a pathway for emissions reduction”.
Under the previous government, the 2019 Clean Maritime Plan set targets for all new UK vessels to have zero-emission capabilities by 2025.
Wind power
One area the new government is putting in cash for towards the net zero target is renewable energy, as £1.56bn of funding has been allocated for green energy projects, the majority of which (£1.1bn) will go to offshore wind.
The record level of financial support reflects a 50% increase on the previous budget and follows what was described as “intense” lobbying by the clean energy sector, according to the FT.
The funding is set aside for the yearly subsidy contract auction, in which firms can bid for 15-year guarantees on their state energy price. Energy secretary Ed Miliband said last year’s auction was a “catastrophe”, given that no offshore wind developers bid. Labour promised to quadruple offshore wind capacity.
Wind power makes up a sizable proportion of the UK’s energy output, currently producing slightly short of almost 40% of the UK’s needs. This is followed by mixed imports from nearby France, Norway and Belgium, reaching over 18%.
The increase in wind capacity is reflected by the most recent round of Department for Energy Security & Net Zero, which revealed more electricity was generated by wind than gas in both Q1 and Q4 2023.
Obsolete oil
More oil imports are likely to be on the horizon, as The Telegraph reports on the fallout from a controversial decision to replace a Scottish oil refinery with an import plant.
Grangemouth refinery owner, Petroineos, said that the plant is too old and inefficient to be compatible with the UK’s net zero ambitions, with an increase in electric vehicle adoption accelerating a decline in fossil fuel demand.
A spokesperson for Petroineos told the Telegraph that the replacement plan is part of a broader strategy to pivot towards importing in response to global trends, describing the plant as:
“One of the oldest refineries in Europe operating in a market with structural overcapacity as newer, more efficient refineries come on stream in the Middle East and Asia.
“In the medium term we forecast a dramatically reduced demand for key fuels we produce.”
They added that electric alternatives to fossil-fuel powered transportation, along with the 2030 ban on new petrol and diesel cars, informed the decision.
Interconnector innovation
In addition to policies pushing for electric vehicles, an increased ability to share renewable energy is as important to reduce dependency on oil.
The UK now has six interconnector links, facilitating the transfer of surplus energy between France, Belgium, Norway, Denmark and the Netherlands. The sixth link is the world’s longest, the 764km ‘Viking Line’ connecting the UK to Denmark’s electricity grid, which went live at the end of 2023.
The Energy Act 2023, passed in October, made multi-purpose interconnectors (MPIs) a licensable asset, with consultation by Ofgem ongoing to determine the nature of future projects.
By 2030, its hoped that 90% of energy imported via interconnectors will be renewable.
Progress towards this target has stalled in recent years as the UK acts as a transit hub for European supplies of liquified natural gas (LNG), following the drive to eliminate dependency on Russian energy.
The UK’s significant storage capabilities enabled it to build European energy stores ahead of winter in 2022 and 2023, temporarily making the UK a net exporter of LNG.
