Page 7 - Gi flipbook April 2019

industry & government news

GAS GRID DECARBONISATION legal emissions reduction target. But

existing gas regulations that were
designed decades ago, and a lack
NEEDED, REPORT ARGUES of investment and incentives, are
hampering deeper decarbonisation.
“Now, with time running out,
the government and Ofgem should
approach the task of decarbonising
gas with the same fervour as it has
applied to delivering low carbon and
affordable electricity. It is an urgent
priority to ensure that Ofgem’s next
price control framework from April
2021 includes stronger incentives and
greater investment to support deeper
decarbonisation.
“In particular, Ofgem should
introduce a new low-carbon gas
obligation. This will enable the UK to
decarbonise the gas network at the
lowest possible cost, without distorting
the market and removing the need to
subsidise alternatives to natural gas.”
Claire Perry, Minister of State for
Energy and Clean Growth, said: “I
welcome this thought provoking
work from Bright Blue. Through rapid
progress in decarbonising power
generation, the UK has grown its
THE GOVERNMENT HAS PLEDGED economy whilst cutting carbon faster
TO GET SERIOUS ON HEAT than any other country in the G7. But,
if we are going to build on this success,
A REPORT ISSUED by think tank Bright gases and by reducing demand for we need to get serious in tackling heat.
Blue argues that new government gas in the heat sector. It calls for new This welcome report points to policy
incentives and investment are needed to government investment and incentives solutions that build on the strength of
end the UK’s dependency on natural gas. for decarbonisation to be an urgent our natural gas sector where we are a
According to Network, the report priority in Ofgem’s next price control world leader, and the hugely valuable
argues that deeper decarbonisation framework for gas from April 2021. assets of our gas networks.
of UK gas is essential if the country is Wilf Lytton, Senior Researcher “Hydrogen and biomethane can help
to meet its current and likely future at Bright Blue and co-author of deliver serious climate action through
emissions reduction target. the report, said: “UK gas must be our existing infrastructure, keeping
The report assesses how to completely decarbonised during the consumers on board and maintaining
decarbonise gas in the UK by coming three decades if this country the flexibility and resilience provided
increasing the supply of low carbon is to meet its current and likely future by the gas system.”

INEOS TO PUMP £500M INTO FORTIES

PIPELINE REJUVENATION PLAN

THE CHEMICALS GIANT owned by improvement” plan would make
Britain’s wealthiest man has promised the pipeline system more reliable,
to invest £1 billion in the UK, half of supporting North Sea production well
which will go to the Forties pipeline into the 2040s. INEOS SAYS ITS PLAN WILL SUPPORT NORTH
system in the North Sea. The investment “underlines its SEA PRODUCTION INTO THE 2040S
Energy Voice reports that Ineos founder confidence” in the UK, according to
Jim Ratcliffe has set out plans to spend Ineos. However the announcement at PwC to save around £4 billion in
£500 million on modernising the North comes just months after it was taxes following his move to the well-
Sea pipeline system, another £350 reported Ratcliffe would leave the UK known tax haven.
million to upgrade its Grangemouth to live in Monaco. Ineos was in talks with
refinery, and £150 million to build a new The billionaire industrialist, ConocoPhillips to buy the US firm’s
chemicals plant in Hull. who was knighted last summer, is North Sea portfolio, but talks broke
Ineos said its “transformational reportedly working with accountants down earlier this year.

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News.indd 2 14/03/2019 14:19