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HOW TO BUILD BACK gas supplies. Reducing carbon intensity
is a big part of the government’s
strategy, he said, blending with low
BETTER AND GREENER carbon alternatives and introducing
new technology to reduce demand and
increase energy efficiency.
He recognised that the gas sector
is very engaged with the potential of
hydrogen and carbon capture usage and
Rt Hon Kwasi Kwarteng, Minister of State for the storage (CCUS). This represents huge
potential, anticipating that hydrogen
Department for Business, Energy & Industrial Strategy and CCUS will be big allies in the
delivers the keynote address campaign towards a net zero future.
In terms of policy commitments,
Kwarteng announced that the
government will deliver a hydrogen
strategy in 2021, which he promised will
be very comprehensive. According to
him, the government is fully committed
to deploying CCUS in this decade and
wishes to become a global leader in what
will be a significant market in the future.
The green gas support scheme,
which is now in place, will increase the
proportion of low carbon gases in the
grid and the government will continue
support for biomethane injection, he
said. The minister then invited the
industry to respond to the government’s
recently launched consultation on the
Green Gas Levy. He also confirmed
that the Energy White Paper will be
published this autumn, which will set
out how the government will support
the energy transition and create jobs.
In return for the government’s
support, the minister is seeking very
SPEAKING AT IGEM’S 2020 Annual carbon businesses and in their supply clear commitments from the industry
Conference, the Rt Hon Kwasi chains, with the expectation that by with ambitious emissions targets
Kwarteng, Minister of Energy, shared 2030 this number will go up to 10 and industry investment in new
his thoughts on the commitments of million jobs. technologies. He said he is pleased
the Department for Business, Energy Kwarteng recognised that the UK is to see the progress made by industry
& Industrial Strategy (BEIS) and what only at the beginning of this process, so far; an approach that is forward
we can expect in terms of policy but that this is a very exciting time looking and balanced, focusing on jobs,
developments in the months ahead. for the gas sector and him personally decarbonisation and energy security.
The minister commended IGEM’s as Energy Minister, equating the This three-pronged approach is
work to date on gas quality standards low carbon transition as one of the welcome, he said, and he looks forward
and supporting the deployment of most exciting transitions since the to seeing the outcome of gas quality
low carbon gas. He reaffirmed the industrial revolution. work currently underway.
government’s commitment to “build And he acknowledged that natural Commenting on the role of Ofgem,
back better and greener” – gas has played an important role in the minister commended the
the green element being helping us to move away from coal, regulator’s performance in what is a
absolutely key. providing the flexible power we very difficult scenario where multiple
He highlighted the need. However, natural gas is interests must be balanced.
progress made over the still associated with 50 per cent Commenting on the role of the
last 30 years; cutting of the UK’s carbon emissions consumer, the minister stated that
carbon emissions by more so there are still changes encouraging consumers to think
than 40 per cent, while needed to reach net zero. more positively about decarbonising
also growing the UK’s He stated that natural gas their heat sources is a challenge yet
GDP by 75 per cent. This, will be part of that transition, to solve. Although the Green Homes
he said, demonstrated recognising the need to Grant goes some way to incentivising
that it is possible to achieve reduce our natural gas use, but consumers, there is still some way to
both. In that time, 465,000 confirming that we will not go. The upcoming Heat & Buildings
jobs have been be switching Strategy will sketch out how the shift
created off our in consumer behaviour might be
in low natural achieved, he concluded.
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