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industry & Government news

FRACKING BAN SHOULD CONTINUE FOR

UK TO MEET NET ZERO, CCC WARNS

THE CLIMATE CHANGE COMMITTEE elsewhere in the UK. This latter
(CCC) has told the UK government recommendation is designed to prevent
that restrictions on onshore fracking fossil fuel firms from excessively
for shale gas must be continued until relying on offsetting internationally.
scientists have a better understanding According to the letter, the UK’s gas
of its full environmental impact. demand will need to fall by two-thirds
In a letter sent to Business and by 2035 if the UK is to meet its 2050
Energy Secretary Kwasi Kwarteng at climate target. Even in the worst-case
the end of March, the CCC provided scenario, demand will fall significantly.
updated advice on whether onshore This will create financial risks with
petroleum production is compatible scaling up fracking in the future.
with the UK’s carbon budgets and But the letter does acknowledge that
its long-term net zero target, reports the UK is currently a net importer of
sustainability website edie. The last fossil fuels and that, even in a net zero
advice was provided in 2016 and, since scenario, it will need to import some
then, fracking has effectively been level of fossil fuels. It states that shale FRACKING REMAINS UNPOPULAR WITH THE BRITISH PUBLIC
banned and the UK has altered its gas fracked domestically could be a
Climate Change Act. better option than importing liquefied review should also assess whether CCS
The letter takes these changes into natural gas, particularly if producers and hydrogen production are mature
account and stipulates that ministers co-locate fracking sites with carbon enough to co-locate or whether fossil
may adopt the CCC’s recommendations capture technologies or link it to the fuel firms would use them as a form of
on the sixth carbon budget, which development of hydrogen. get-out-of-jail-free card.
would necessitate a ‘front-loaded’ On balance, however, it recommends The report also warns that a review
net zero transition. It states that the that the effective ban on fracking remains with positive findings may not be
three ‘tests’ for gas laid out in previous in place for now. It outlines concerns cause enough to lift the fracking ban,
advice briefings will be more important over seismic activity caused by fracking because fracking is so unpopular.
than ever, the tests being limiting and the sector’s potential impact on BEIS’s 2020 public attitudes tracker
emissions from fracking; capping gas society and nature, stating that an in- found that only 10 per cent of the
consumption and offsetting production depth, independent review on fracking’s public support fracking while 41 per
emissions with in-house reductions, full impact should be undertaken. The cent actively oppose it.

SSE TO SELL STAKE IN SCOTTISH GAS NETWORK TO FOCUS ON POWER

appointed banks to review options for
a sale and is “now progressing options
for divestment of all its equity stake in
SGN,” according to a statement.
The disposal follows a deal by
National Grid Plc to sell its majority
stake in its gas grid business later
this year, as the fossil fuel comes
under increasing scrutiny from
investors and activists.
The company will continue to
own and operate its electricity grid
business Scottish and Southern
Electricity Networks. SSE is building
the world’s biggest offshore wind farm
at Dogger Bank and has a £2 billion
SSE IS TO SELL ITS STAKE IN SGN divestment plan by autumn 2021.
SGN is valued at 2.1 billion pounds
SSE PLANS TO SELL its 33 per cent of its plan to focus on renewable taking the equity value of SSE’s stake
stake in local gas network company generation, reports Bloomberg. to about 900 million, according to
Scotland Gas Networks Plc as part SSE said in February it had Barclays Bank Plc.

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