INDUSTRY COMMENT CLEANING UP THE ENERGY LANDSCAPE: HOW THE UK CAN BECOME INDEPENDENT
by Chris Neilon, partner, EMEA energy consulting leader at Infosys Consulting
The energy market faces another volatile period as we enter the Winter months. Wholesale costs are on the rise again, impacted by geopolitical events. The 5% jump in the price cap, recently announced by Ofgem, highlights the UK’s vulnerability to these global energy shocks. That’s not to say resiliency isn’t built into the
UK energy sector. It weathered last year’s storm of record-high wholesale gas costs, and has ramped up infrastructure for gas storage since then. Now, the sector is more focused than ever on planning ahead and buying in supplies for future demand. Yet, storage can only do so much and isn't a long-term solution, with gas widely considered a transition fuel as we move longer-term into renewables. The transition to renewables won’t happen
overnight – but it must lay at the heart of our long-term national strategy if we are to become energy independent. Decarbonisation is vital to making energy security a reality – using cleaner energy sources, moving further away from fossil fuels, and putting the right infrastructure in place. So, how can the UK maximise clean investment to make this happen?
AN INCREASED FOCUS ON CONNECTIVITY Access to multiple renewable energy sources like hydro, wind, solar and tidal puts the UK in a unique position. Together, these can create a community
renewables system which is relatively cheap, plentiful and environmentally friendly. Yet currently, homes in certain regions of the UK don’t have any real option of clean energy because of a
lack of capacity and connectivity in the system. The UK must find a way of taking the renewable
energy we’re producing from more remote locations, typically in the north, to towns and cities throughout the UK. This requires greater investment in the National Grid, which currently faces a considerable backlog to connect renewable energy projects. With more cables and storage across the country, every region can access low carbon electricity – stimulating growth in renewables programmes and the UK’s green economy.
POWERING THE NUCLEAR PUSH Mini nuclear energy presents another solution for cleaner energy – with the government already pledging to invest £20 billion in this to meet Net Zero targets. Similarly with community renewables, these can be deployed close to population centres, and their establishment is far more agile and speedy compared to huge power plant sites like Hinkley and Sizewell which can take years to construct. Small modular reactor (SMRs) initiatives offer a
cheaper, quicker model compared with traditional plant designs, and can power some 400,000 homes. Initiatives like these means we can significantly speed up the move to Net Zero and become energy independent, while keeping costs down – making it a viable energy source alongside community renewables.
PRIORITISING ‘CLEAN UP’ INVESTMENTS Realistically, we’re not at a point where we can completely decarbonise the industry. With the majority of energy used last year coming from coal, oil and gas (78%) there will still be a mass amount of oil and gas production while we transition to cleaner energy sources. The transition will take time,
RENISHAW SWITCHES TO 100% RENEWABLE ELECTRICITY
Global engineering technologies company, Renishaw, has signed a two-year contract with Ecotricity under which the provider will supply Renishaw’s main UK sites with 100% renewable electricity. As part of its ambitious climate
transition plan, Renishaw aims to reduce emissions relating to its business activities and purchased energy — Scopes 1 and 2 — to Net Zero by 2028. Its partnership with Ecotricity is the latest move towards exclusively using green energy across the globe, with its sites in India, Japan, Mexico and the USA among those already running on 100% renewable electricity. “So far, we’ve reduced
Scope 1 and 2 emissions by 21% compared to last financial year and our Net
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Zero commitments promise that we will go even further,” said Ben Goodare, head of sustainability at Renishaw. “We self-generate 11% of our electricity consumption and most of the electricity we buy is certified renewable. By the end of 2024, 100% of what we purchase globally will meet our sustainability requirements.”
www.renishaw.com/en
and it’s likely that fossil fuels will continue on a considerable scale until at least the mid-2030s. We can, however, combat its effects by reducing
waste. With the right strategies in place, investments can be funnelled towards cleaning up bad industry practices that are causing environmental damage, such as the flaring and spillage of oil. Ideally, half of capital expenditure from North Sea oil giants needs to be invested into Net Zero and low carbon sources of energy, as well as cleaning up bad habits, to truly make an impact whilst maintaining necessary access to energy for the nation.
COLLABORATION TO SECURE A LOW CARBON FUTURE The transition to renewables and increased energy security will happen, but it’s not a simple case of the big players winding down oil and gas production. Lots of different parties need to move in concert with one another to make it happen. We’re also starting to see tech companies working more closely with the energy sector, building platforms that allows for better tracking of carbon from production through to supply chain, meaning more accurate reporting and better alignment with ESG legislation. With these moving parts working in tandem,
the UK can set a global precedent for investment in clean energy. It can also help other countries establish renewable projects like solar, wind and geothermal effectively. Ultimately, every effort needs to be made to unlock the potential for renewables and clean up bad practices – helping pave the way for energy independence and a greener future.
www.infosys.com
ADVANCED NUCLEAR PLANTS COULD ACCELERATE UK’S PATH TO NET ZERO
X-Energy UK Holdings, a subsidiary of X-Energy Reactor Company, LLC, has released Beyond Electricity. This new report from nuclear heat applications specialist Equilibrion details how the United Kingdom can accelerate its progress to Net Zero emissions with advanced nuclear plants. The report summarises work undertaken in Northeast England’s Teesside.
High-temperature steam (565˚c) from advanced reactors can be used to replace fossil-fuel-generated heat in process industries like chemicals, or to produce hydrogen or clean jet fuels. It can also help improve the efficiency of technologies designed to strip carbon dioxide from the atmosphere. The report highlights that the region has a major demand for high temperature heat and steam. X-energy, working with Cavendish Nuclear, is planning a fleet of up to
40 of its advanced small modular Xe-100 power reactors in the UK. It is proposing to develop a £multi-billion 12-reactor plant at Hartlepool. X-energy’s intrinsically safe advanced small modular reactor (SMR) and
TRISO-X fuel greatly expands applications and markets for deployment of nuclear technology relative to other SMRs and conventional nuclear. Its high-temperature gas reactor (HTGR) technology can support broad industrial use applications through its high-temperature heat and steam output. In addition, it can integrate into and address the needs of both large and regional electricity systems. “Nuclear energy offers a major boost to industrial clusters seeking to rapidly
reduce emissions and improve competitiveness by providing stable, local, low-carbon energy with long-term price certainty,” said Dr. Philip Rogers, director at Equilibrion.
ENERGY & SUSTAINABILITY SOLUTIONS - Winter 2023
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