Offshore Energies UK (OEUK) says the opening of UK-EU talks on key areas such as grid linkage and emissions trading offers opportunities to drive down costs for homes and businesses, boost energy security and accelerate the drive to net zero.
The UK and EU have agreed to enter into negotiations to link the UK and EU emissions trading schemes – a linking agreement the UK Government says will save British businesses money; help cut costs for families and allow more money to be invested at home.
The government also says the agreement aims to maximise cooperation on renewable technologies, while supporting thousands of jobs and boosting growth in technologies including hydrogen and carbon capture use and storage.
OEUK’s head of energy policy Enrique Cornejo says:
'Today marks the start of a new conversation about the UK and EU’s relationship and energy future. Since the invasion of Ukraine, energy security and costs have become very real issues for people across our continent.
'I hope we can work with our European partners to drive down costs and unlock a new era of innovation and collaboration across our shared energy mix from offshore wind, hydrogen to carbon capture – all secured by domestic oil and gas production and our world class supply chains.
'With Europe’s largest CO2 storage capacity – 78 gigatonnes, equivalent to 200 years of UK emissions – the UK can develop international carbon storage services for European countries lacking capacity, creating a £7 billion market by 2040, while also becoming a leader in low-carbon hydrogen production, both blue and green, for countries with limited production capacity such as Germany.
'The linkage of UK-EU emissions trading systems could help to create a more robust market and avoid significant costs for UK exporters as the EU Carbon Border Adjustment Mechanism comes into force. This has the potential to reintegrate UK and EU electricity markets, reducing frictions and costs to consumers.
'By transforming the North Sea into an integrated hub that produces low-cost, high-value energy for consumers, the UK and its neighbours can capitalise on the existing resources, supply chains, skills and expertise we have built up together over many decades.'
OEUK’s forthcoming response to the UK government’s Industrial Strategy consultation will set out practical steps to a sustainable industrial future with homegrown energy at its heart.
Source: OEUK
