Spring Statement 2022

Spring Statement 2022: Government sticks toe in North Sea decarbonisation industry but yet to dive in

Responding to today’s Spring Statement, Nick Cooper, CEO of Storegga, the UK’s leading independent decarbonisation developer, said:

“The UK decarbonisation industry will be largely disappointed by today’s announcement: there was no rabbit out of the hat for carbon capture and storage and hydrogen as hoped. We have an opportunity to decarbonise the British energy industry, whilst also securing supply. But today’s statement does not give us the broader decarbonisation roll out we so desperately need.

“Successive governments of different flavours have failed to set out a long-term vision for the decarbonisation industry. The North Sea has been in decline for years, and is often seen as a dirty piece of our hydrocarbon producing past we would rather forget. But the North Sea presents huge opportunity. An opportunity for a new industrial revolution, sucking up the smog of the past and generating clean energy. The government sticks its toe in the North Sea decarbonisation opportunity but is yet to dive in. Offshore wind was a clear success but we failed to retain the benefits by giving away the supply chain.

“The usual moan is money but this misses the point. Investors from around the world are up for a swim in these turbulent, icy waters but they are held back by government procurement processes and slow progress on the necessary financial frameworks. Much can be done to support the development of green hydrogen and the capture and storage of the carbon we produce every day. We can make the most of our island’s unique geological and shipping potential to create significant value for the UK without loads of pressure on the public purse. National and international investment is ready to dive in but it is kept on the bench, rapidly getting cold. We must do more. The net zero targets are binding. The planet can’t wait.”

Summary of the Spring Statement energy announcements:

• The Chancellor announced a cut in fuel duty of 5 pence per litre, that will start today and be in place until March 2023.
• VAT will be cut on energy saving products to help reduce the cost of powering and heating homes. Installations of solar panels, heat pumps and energy efficiency measures pay 0% VAT for the next five years, all highlighted as ‘Brexit benefit’ that was not allowed under EU rules.
• To support the most vulnerable households, the Household Support Fund, originally launched in September 2021, will see its budget doubled to £1bn. This will provide local councils with funding that can be issued to households with specific need.

 

For further information please contact:
Camarco (PR and Media)
Monique Perks, Tom Huddart, Billy Clegg, Emily Hall - 020 3757 4983

Madano (Public Affairs)
Andrew Turner, Neil Stockley, James Watson - 07702 962043

Notes to Editors:
Storegga
Storegga is an independent, UK-based carbon management business at the forefront of the global Net Zero strategy. It aims to champion and deliver carbon capture and storage (“CCS”), hydrogen, and other subsurface renewable projects in the UK and internationally to accelerate carbon emission reductions.

Through its wholly owned subsidiary, Pale Blue Dot Energy, Storegga is the lead developer of the Acorn Carbon Capture and Storage (“CCS”) and Hydrogen project, providing essential infrastructure to help the UK meet its net zero targets.

The Acorn Project will provide critical backbone infrastructure for the Scottish Cluster. The Scottish Cluster unites communities, industries and businesses to deliver CCS, hydrogen and other low carbon technologies, supporting Scotland, the UK and Europe to meet net zero goals.

Storegga has partnered with leading engineering and technology groups at the forefront of their fields to accelerate infrastructure development. The Company has partnered with Carbon Engineering to develop Direct Air Capture (“DAC”) in the UK.

Storegga:(https://www.storegga.earth/)

For more information on Storegga or Acorn contact storegga_media@camarco.co.uk or 020 3757 4980

For more information on the Acorn CCS and Hydrogen Project, please visit: About Acorn – Acorn CCS - https://theacornproject.uk/about/