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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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        IGEMNews_AnnualConference.indd   2                                                                        15/10/2020   13:22
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