Page 5 - EurOil Week 15 2022

EurOil COMMENTARY EurOil

“Nuclear is the only form of reliable, low-car- utilisation and storage (CCUS) remain the same,
bon electricity generation which has been with GBP1 trillion ($1.3bn) to be invested in
proven at scale and returns more than 100 times four projects by 2030. Two of these initiatives,
as much power as a solar site of the same size,” East Coast Cluster and HyNet North West, have
the government said. “We can only secure a big already been selected for funding, with a third,
enough baseload of reliable power for our island Acorn, having been placed in reserve.
by drawing on nuclear.”
The UK, which currently gets 15% of its Other areas
power from nuclear plants, is pursuing a similar The government’s policy paper raises targets in
strategy to France, whose government recently nearly all other areas besides CCUS. For offshore
announced that more nuclear power stations wind, the goal is 50 GW of capacity by 2030, up
would be built after a hiatus lasting years. Other from 40 GW previously. Meanwhile, the goal is
European powers such as Germany have taken a a fivefold increase in solar power to 70 GW by
very different approach. Berlin has insisted that it 2035. While this approach has meant many dif-
will continue with its phase-out of nuclear power ferent industries have welcomed the plan, it may
plants (NPPs) as planned, despite soaring energy signal a lack of focus.
costs. The government also calls for an expansion
Hydrogen, CCS in transmission infrastructure, reductions in
The government is also doubling its target demand through the use of greater efficiency
for hydrogen production to 10 GW by 2030, of and the decarbonisation of heating through the
which around half will be electrolyser-produced deployment of heat pumps and hydrogen. Nota-
green hydrogen. The remainder will be blue bly absent, however, is any clear plan for electric-
hydrogen, derived from natural gas with the ity or natural gas storage.
resulting carbon emissions captured, and yel- The UK’s only largest gas storage facility at the
low hydrogen, which is also produced by elec- depleted Rough field was closed in 2017 after the
trolysis but with the process running on nuclear former government refused to provide it with
electricity. extra support. That decision has now drawn
By the end of this year, the government also criticism, considering the UK now has compar-
aims to take a final decision on blending up to atively far less gas storage than any other major
20% hydrogen into the existing natural gas grid gas-consuming economy in Europe. During the
in order to decarbonise the system. current energy crisis, that has increased the risk
Whitehall wants to see annual allocation of shortages.
rounds held for green hydrogen, shifting to The absence of any plan for gas storage is a
price competition allocation by 2025, as long as notable omission, especially considering that the
legislation and market conditions allow. New government had hinted it was looking to revive
business models will also be designed for hydro- Rough with state backing last year. Instead, the
gen transport and storage by the middle of this government’s plan for storage rests on hydrogen,
decade, and a hydrogen certification scheme which effectively stores renewable energy, and
created that will “demonstrate high-grade British the development of battery storage. But neither
hydrogen for export and ensure any imported will make a considerable difference to the UK’s
hydrogen meets the same standards that UK energy security for years to come, whereas devel-
companies expect.” oping new gas storage could potentially make a
Notably, the UK’s targets for carbon capture difference in one or two years. ™

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