UK Commits to Future North Sea Licences and CCS Support

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UK Commits to Future North Sea Licenses and Announces Support for CCS Clusters

LONDON, July 31 – In a bid to achieve energy independence, the UK government has announced its commitment to granting hundreds of licenses for oil and gas extraction in the North Sea. This move has drawn criticism from environmental campaigners who argue that it contradicts the country’s goal of reaching net zero emissions by 2050.

Prime Minister Rishi Sunak has confirmed plans for over 100 licenses, which received bids earlier this year, and has expressed the possibility of granting hundreds more in the future. Alongside this announcement, Sunak also revealed the government’s support for two carbon capture and storage (CCS) clusters in Scotland and northern England.

Despite the country’s target of reaching net zero emissions, which includes reducing reliance on oil and gas, Sunak highlighted the importance of domestic fossil fuels in improving energy security and reducing dependence on states like Russia.

“We have all witnessed how (Russia’s President) Putin has manipulated and weaponised energy… Now more than ever, it’s vital that we bolster our energy security,” he said.

This commitment to fossil fuels has become a point of contention between the governing Conservatives and the opposition Labour Party. Sunak argues that the net zero target should be approached in a “pragmatic” manner to avoid raising household energy bills.

However, climate activists and green groups have voiced concerns about increasing fossil fuel output, saying it contradicts the government’s environmental goals. The International Energy Agency has also asserted that no new oil and gas projects should move forward if global climate targets are to be met.

Sunak defended the new licenses, stating that they align with the government’s environmental targets. The North Sea Transition Authority (NSTA) regulator expects the first of these licenses to be awarded in the autumn, while still evaluating 115 bids for fields in the ongoing licensing round that closed in January.

During his visit to a Scottish energy infrastructure site, Sunak emphasized that the CCS clusters would create thousands of jobs, and these plans were welcomed by energy companies, including Shell and Harbour Energy, who are partners in the Acorn CCS project.

The UK aims to utilize CCS technology, which involves capturing carbon emissions from industrial smokestacks and storing them underground, to hold 20-30 million tonnes of CO2 by 2030. However, the country currently lacks large-scale or commercial CCS projects, and the government has faced criticism for slow progress in deploying this technology.

Mike Childs, head of policy at Friends of the Earth, criticized the government’s focus on CCS, stating that it does not address all the climate pollution caused by burning fossil fuels.

The announcement of new licenses and support for CCS clusters marks a significant step in the UK’s efforts to establish energy independence and meet its environmental goals. However, it remains to be seen how these actions will be received and whether they will effectively balance the country’s energy needs with its commitment to reducing carbon emissions.

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