The physique that represents the UK’s offshore power sector has insisted it's “assured” plans for brand spanking new oil and fuel licences for the North Sea will face up to a threatened authorized problem from local weather campaigners.
It is predicted the North Sea Transition Authority (NSTA) will launch an extra spherical of oil and fuel licensing in October, with the transfer being given the inexperienced mild by the UK Authorities.
UK Enterprise and Vitality Secretary Jacob Rees-Mogg nevertheless has declared that “in mild of Putin’s unlawful invasion of Ukraine and weaponisation of power, strengthening our power safety is an absolute precedence”.
Environmental activists, nevertheless, are against the plans, with Greenpeace having raised issues that such motion might be “illegal”, as they take into account authorized motion.
However trade physique Offshore Energies UK (OEUK) mentioned on Thursday it was assured the licensing spherical, which UK Authorities ministers have mentioned may result in 100 new licences for work within the North Sea being granted, would “arise towards problem”
Talking at a briefing for journalists, OEUK market intelligence supervisor Ross Dornan insisted there have been each “financial and environmental advantages which might assist our nation” from additional growth within the North Sea basin.
He mentioned: “We will produce oil and fuel right here at a decrease emissions footprint than it may be produced for in most of the locations we've got to import oil and fuel from.
“If we had been reliant on imports the entire scope of the emissions footprint from these imports is increased, particularly whenever you take into consideration the delivery of them and never simply the manufacturing of them.”
His feedback got here after OEUK revealed its annual financial report this week, highlighting the influence of the “international power disaster on the UK” together with prospects for “boosting future power independence”.
With the UK having to import oil and fuel to fulfill its power wants, Mr Dornan confused the significance of additional licensing, saying there have been developments which might be progress “fairly rapidly” to assist meet power wants inside a “comparatively quick time-frame”.
The power markets have additionally been affected by Russia’s invasion of Ukraine, with Mr Dornan stressing that securing oil and fuel from different nations was “tough”.
He mentioned: “As worldwide provides are so tight, they're so tough to entry in the mean time, and are more likely to be for the approaching years, it's actually essential we take advantage of our personal sources.
We're assured as a sector that new licensing is suitable with our net-zero necessities, it's good for the UK’s economic system, it's good for our power safetyRoss Dornan, OEUK
“It brings resilience and it brings many different financial and environmental advantages to the UK.”
He additionally acknowledged that new licences wouldn't be a “compromise to our future emissions targets and our progress towards that”.
Mr Dornan mentioned that new developments approaching line would “incorporate the most recent clear applied sciences” to make sure the sector can meet its personal emission targets – which embody being internet zero by 2050, in step with the UK Authorities ambition.
With regard to a doable authorized problem to the licensing spherical, he mentioned: “We're one of the crucial extremely regulated industries within the UK.
“Enormous scrutiny is put in place relating to launching a brand new licensing spherical, there are hurdles that the North Sea Transition Authority have to beat to have the ability to do this and there's a lot of processes that should be put in place to ensure it's rigorous and it's authorized.”
Local weather compatibility assessments add to “that rigour”, Mr Dornan mentioned, and added: “We're assured as a sector that new licensing is suitable with our net-zero necessities, it's good for the UK’s economic system, it's good for our power safety.
“We’re assured that that may arise towards problem.”