Latest news with #OEUK
Business News Wales
5 days ago
- Business
- Business News Wales
Comprehensive Spending Review 'Must Back a Homegrown Energy Future'
Offshore Energies UK (OEUK) is calling on the Chancellor to prioritise major UK energy projects at the Comprehensive Spending Review (CSR). Carbon Capture and Storage (CCS) is a key technology for decarbonising UK industry for which the CSR could unlock fresh business investment and jobs, the organisation says. The Humber's Viking and Northeast Scotland's Acorn projects have the potential to invest over £25 billion by 2035 with private sector capital, potentially creating over 30,000 jobs, it added. Acorn is the only project of its type in Scotland and is critical for futureproofing a variety of industrial, power and energy production companies to meet climate goals and prevent further deindustrialisation, says OEUK. Located in the Humber, the UK's most industrialised region and largest emitter of Co2, the Viking CCS project will create thousands of jobs in the region and play a vital role in supporting the UK to meet its target to capture 30 million tonnes of Co2 annually by 2030, says OEUK. OEUK has also urged government to deploy up to £7.5 billion in the Contracts for Difference (CFD) scheme to grow floating and fixed offshore wind over the next three auction rounds (AR7 – AR9) and help industry meet Clean Power 2030 targets. The UK Government is expected to open AR7 this summer. While the CSR addresses departmental spending and not revenue-raising plans, OEUK said a competitive fiscal regime for oil and gas remains essential to an ever-integrating industry, which is one of the UK's most important economic assets. Industry needs globally competitive tax and licensing regimes for oil and gas so the UK can lessen its reliance on imports and sustain jobs, supply chains and economic value as it scales up renewables, it said. The CSR should help the UK's offshore energy and other industrial sectors unlock economic growth and strengthen supply chains while developing world leading companies, said OEUK. Today, the UK offshore energy sector supports over 200,000 jobs in oil and gas alone and generated £25 billion in gross value add in 2023. Harnessing the potential of the UK's existing and emerging energy sector could increase this value much further, says OEUK. David Whitehouse, OEUK's CEO, said: 'These are critical times and our sector can help government lay a credible path to economic growth. This starts with support for homegrown energy. 'We must work together to unlock business investment across UK energy opportunities. This includes the build out of renewables alongside the responsible production of oil and gas. 'We are asking government to deploy the previously announced funding for carbon capture and storage and announce a clear funding envelope for Track-2 and beyond. 'This is needed so key projects like Acorn in Scotland and Humber-based Viking can go ahead, create jobs, help British industry decarbonise and importantly invest in Britain. 'In a country that's importing over 40% of its energy, we need more wind, hydrogen, oil and gas, and CCUS projects built here. This is investment the country needs for growth.' OEUK's CSR asks are: Unlock private sector investment in carbon storage and capture, offshore fixed bottom wind, offshore floating wind, and hydrogen. Provide a clear long term funding envelope as part of the Government's Clean Power 2030 goals to deliver the potential of these technologies. Provide efficiently resourced departments and efficient regulators to progress opportunities and activity at pace. Support UK specialist technology hubs to drive the technology and innovation required for a successful homegrown energy transition. Support expansion of the Skills Passport and cross sector skills demand planning to ensure that the UK has the skilled people to deliver on the offshore energy growth opportunity
Business News Wales
03-06-2025
- Business
- Business News Wales
OEUK Calls for Windfall Tax Reform to Boost UK Energy Investment
Trade body Offshore Energies UK (OEUK) has called on the UK Government to remove the windfall tax on oil and gas profits by 2026. It is calling for it be replaced it with a competitive long-term mechanism that responds to future price shocks to encourage what it says is necessary investment in the UK's energy future. The call comes as the UK Government's consultation aimed at developing a predictable response to future price shocks closed. The Energy Profits Levy (EPL), known as the windfall tax, was introduced in response to a spike in global energy prices in May 2022. It's an additional tax on the profits made by companies producing oil and gas from the waters off the coast of Britain, with the top rate of tax at 78 per cent. Independent data from the Office of National Statistics confirms that the profits for those investing in the UK oil and gas sector have fallen to negative levels, but the tax remains, which OEUK says is holding back vital investment across the UK's energy landscape. Pointing to the UK's increasing reliance on imported energy, OEUK said that a pragmatic oil and gas tax regime would deliver more home-produced energy, protect jobs in the industry and across the wider economy, and strengthen the UK's energy sovereignty. In 2024, the UK's total energy production was at an historic low, with over 40% of UK's energy needs met through imports. Without stimulating investment, the UK could be reliant on imports for the majority of its oil and gas demand by 2030. OEUK has shown that supportive government policy towards UK oil and gas production increases the likelihood of a successful domestic expansion into other energy forms including floating offshore wind, carbon capture and hydrogen. OEUK is pressing the UK Government to act in the next Autumn Budget. It's calling for a mechanism to be introduced in 2026 that responds to price shocks and gives companies certainty to invest long term. OEUK chief executive David Whitehouse said: 'Last year, the UK was dependent for almost 40% of total energy demand on imported energy, and UK energy prices are higher than many of our counterparts. In an uncertain world that is not the place to be. 'In a country where today 75% of our energy comes from oil and gas, the solution is the responsible production of our own oil and gas from the North Sea, alongside the build out of renewable energy. It should not be a debate about one form of energy versus another – we need it all. 'We welcomed the Government's decision to launch this fiscal consultation and we're engaging constructively in the process. 'The sector needs action now to secure jobs, boost energy security, and build for the future. That means a commitment from government to deliver a mechanism in 2026 that creates a predictable response to future price shocks. 'This is what is needed to unlock investment in UK energy – oil, gas, renewables, hydrogen, and carbon capture. 'The North Sea is a strategic national asset that has powered the UK economy and homes through for the past 50 years and it is only right that it is managed as such.'
Scotsman
19-05-2025
- Business
- Scotsman
Offshore wind official cites importance of 'phased' ScotWind projects
OEUK report identifies shortfall in 2030 clean energy target without action Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Work on the vast ScotWind renewable projects needs to be 'phased' in order to achieve a 'steady pipeline' of delivery amid turbulence facing the sector, according to a leading figure in the offshore energy's trade body. Thibaut Cheret, wind and renewables manager at OEUK, told The Scotsman that while the programme of large-scale offshore wind developments faced challenges, key work was underway. Advertisement Hide Ad Advertisement Hide Ad It comes as OEUK stressed the 'critical' need for a record increase in offshore wind capacity in order to meet the UK government's 2030 goal, with a new report by the body warning of a shortfall in capacity unless there is action taken to address price inflation, capital cost, and UK supply chain competitiveness. Such pressures were cited by the Danish firm, Ørsted - which is involved in ScotWind initiatives - when it scrapped its plans for the vast Hornsea 4 development off the East Yorkshire coast, a decision that has caused unease and nervousness throughout the wider industry. The Scottish Government 'reluctantly' used up to £460 million of money raised via the ScotWind scheme – where parts of the Scottish seabed are leased out for offshore wind farms | PA Only last week, The Scotsman reported that some ScotWind developers have asked Crown Estate Scotland to extend their current ten year option agreements by a further five years because current market conditions have made it challenging for them to meet their original targets. Asked if he was aware of developers looking to secure such extensions, Mr Cheret did not reference any individual companies or consortiums, but stressed that as a whole, the scale of ScotWind - in total, the 20 projects awarded in 2022 could provide nearly 30GW of new capacity - meant that it was best delivered stage by stage. Advertisement Hide Ad Advertisement Hide Ad 'It makes sense to phase the process' He said: 'They will stay close to their discussions. ScotWind is so big, it makes sense to phase the process. It's better to have a nice steady pipeline, a ramp up, and then a nice steady pipeline. 'Rather than rushing things and you trip, it makes sense to phase the project. You will learn from the early ones who were able to take more risk.' Asked how acute the challenges facing offshore wind energy were for the raft of ScotWind projects, Mr Cheret pointed to issues surrounding grid connections and the need to carry out upgrades. The ScotWind leases will be developed by energy companies | NationalWorld He added that the proposed marine recovery fund - an industry-funded set of strategic measures to compensate for adverse effects of offshore wind developments on marine protected areas - would also help. Advertisement Hide Ad Advertisement Hide Ad He added: 'Part of ScotWind is also floating wind, so we need to be able to ramp up resources for test and demonstration projects to step up and to learn. They need a specific way to go to market. 'With floating wind, we don't know what the best base is at the moment - we know what to put on top, but we need to understand the base design so we can mass produce.' UK set to fall short of 2030 target Mr Cheret was at the All Energy conference in Glasgow on Thursday to launch a new OEUK report which laid bare the challenges facing the UK government's ambitions to deliver clean power by 2030. It pointed out that while offshore wind installations would generate much of the future low carbon energy mix, unless the pace of change quickens, the UK stands to achieve only 35GW of installed offshore wind capacity by 2030, some way short of the target of between 43 and 51 GW. Advertisement Hide Ad Advertisement Hide Ad Mr Cheret added: 'Meeting the government's 2030 target means securing £15 billion of private investment in offshore wind each and every year between now and 2030. The government's next contract for difference auction in allocation round seven (AR7), which incentivises new low carbon electricity generating projects, will need to secure historic levels of renewable energy procurement. 'With the flexibility to supply oil and gas installations or the national grid, floating offshore wind will become a critical tool for delivering Clean Power 2030 and beyond. Offshore wind leasing rounds released by Innovation and Targeted Oil and Gas (INTOG) under the auspices of Crown Estate Scotland are helping decarbonise offshore oil and gas production whilst accelerating deployment of the first floating offshore wind project at commercial scale. 'As floating offshore wind projects will have access to windier areas in deeper waters around the UK, it is set to become the growth engine beyond 2030 with investment likely to overtake fixed-bottom wind in 2033. More than 50 years oil and gas experience means that our UK supply chain is well equipped to capture a sizable stake of the floating wind market, but a significant portion of the spend required is beyond the reach of many UK companies, which highlights the need for strategic investment in innovation, skills and infrastructure.' 'Force nine gale of events' The conference also heard from Chris Stark, head of mission control for Clean Power 2030 at the Department of Energy Security and Net Zero, who said that there was a 'force nine gale of events happening around us,' and expressed disappointment at Danish firm Ørsted's move to scrap plans for a major offshore wind farm off East Ayrshire. Advertisement Hide Ad Advertisement Hide Ad Addressing the same event, Professor Sir Jim McDonald, the principal of the University of Strathclyde, said an investment of around £40 billion a year in energy infrastructure was required between now and 2030.
Glasgow Times
11-05-2025
- Business
- Glasgow Times
Glasgow event to see launch of offshore wind report
The Offshore Wind Insight Report, created by Offshore Energies UK (OEUK), will be unveiled at the All-Energy Conference in a breakfast briefing on May 15. The event, sponsored by Deloitte, will take place at Glasgow's SEC. Read more: 'Long-standing' Glasgow business for sale after more than 20 years The report will focus on what is needed to deliver Clean Power 2030 and the future growth of floating offshore wind. OEUK represents more than 400 organisations and businesses across the UK, including those involved in offshore oil, gas, carbon capture and storage (CCS), hydrogen, and wind. The report launch will be followed by three roadshows across the UK. The first will be held at Hull's Village Hotel on May 20, followed by the Norfolk Showground Events Centre in Norwich on May 22, and finally the Cavendish Conference Venue in London on June 4. The breakfast briefing and roadshows for OEUK's Wind Insight report will offer a platform for people to hear more about the government's target of creating a clean power grid by 2030, plus analysis of potential opportunities and the policy framework underpinning this objective. Speakers and panellists for the launch of the Wind Insight report at All-Energy include Colin Maciver, senior director at Cerulean Winds, Sarah Knight, senior development manager (decarbonisation) at Crown Estate Scotland, and Susan McDonald, energy transition lead at Deloitte. Read more: Former STV presenter to compete in international beauty competition Thibaut Cheret, wind and renewables manager at OEUK and lead author of the report, said: "The government's Clean Power 2030 (CP30) target will need between 43 and 51 GW of installed capacity in offshore wind by 2030. "A recent round of offshore wind leases released by Innovation and Targeted Oil and Gas (INTOG) will help decarbonise offshore oil and gas production whilst accelerating deployment of the first projects globally at commercial scale but the pace needs to quicken. "Our report will outline what steps need to be taken to achieve this." Tickets for the breakfast briefing in Glasgow are available from the OEUK website.
Telegraph
25-03-2025
- Business
- Telegraph
Is Labour edging towards Donald Trump's ‘drill, baby, drill'?
Is Labour edging towards an echo of Donald Trump's ' drill baby, drill ' over the party's policy on North Sea energy? Or is it still 'fudge, fudge, fudge' over Ed Miliband's ban on Britain developing new fields? The question arises because of the confusing situation where Scottish Labour leader, Anas Sarwar, has called for 'new oil and gas' fields being used so that Britain did not have to buy expensive imports and which industry experts say would provide nearly half of Britain's energy needs for the next 25 years. His comments came after it was claimed that developing new fields could provide a £150billion boost to the British economy. However, Labour sources were at pains to say that there had been no change in the government's official policy, drawn up by the Energy Secretary, Mr Miliband, that only existing oil and gas fields could be developed and had banned new drilling. Nevertheless, in his speech Mr Sarwar said that the British government had a choice between buying expensive imports from despotic regimes and 'new oil and gas'. But Labour insisted that this phrase did not mean new drilling, merely the development of existing oil fields. Mr Sarwar's words followed a demand from the oil and gas industry, Offshore Energies UK (OEUK), that a reversal of Mr Miliband's ban on new drilling could unlock at least an extra three billion barrels of oil from UK waters. This would boost overall North Sea supplies to seven billion, meaning that they accounted for nearly half of the 15 billion barrels required to power the UK between now and 2050. However,Mr Sarwar who has crossed swords before with the Prime Minister on Labour's energy policy, as well as over benefit payments, stopped short of demanding a reversal of current policy. Instead he said the current world economic situation meant 'maximising our existing resources' and added: 'The choice is more expensive imports from despotic regimes like Russia or new oil and gas, then the answer must be oil and gas.' The development of existing fields could, he said, yield billions of value for our economy and added: 'This is a generation-defining moment, we must rise to it to deliver the security and prosperity our country needs.' David Whitehouse, the chief executive of OEUK, said that this country was on a journey to net zero but added: 'We will need oil and gas for decades to come. It makes sense for the UK to produce as much as it can itself.' Much of the oil and gas industry will be disappointed by Mr Sarwar's decision to adhere to the Miliband line that Labour could continue to support oil and gas development but only at existing fields. They believe that his determination not to allow new drilling puts this country at the mercy of expensive imports including those from the USA. Critics of Labour's policy to depend upon imports to meet the nation's energy needs say it is also bad for the environment as North Sea oil and gas are much cleaner. With an election to the Scottish Parliament only a little over a year to go, and with the government's net zero target coming under increased pressure, I cannot imagine Labour sticking to its current policy in banning the development of new oil and gas fields. Even the SNP has a more sensible – well, sort of – policy on the issue now that Nicola Sturgeon and her Green allies are not calling the shots. They will judge all applications for new fields 'on their merits''. We shall see. Meanwhile, Scottish Tory leader Russell Findlay said: 'We are in favour of using all of the country's resources.'
