Key Facts

• New clause 44 aims to remove reference to Maximum Economic Recovery in the North Sea from the Petroleum Act 1998.
• New clause 45 requires the Secretary of State to produce a strategy within six months after the Act is passed.
• The strategy must cover various forms of electricity storage including battery, hydrogen, ammonia, adiabatic compressed air energy storage systems, and hydroelectric storage.
• Last year system-balancing costs reached £4.2 billion.
• Coire Glas has an estimated output of 1.5 GW and could generate enough power for 3 million homes for a 24-hour period.
• Coire Glas will cost approximately £1.5 billion with SSE committing £100 million to advance investigation and design works.
• Other projects like Red John, Glenmuckloch, Balliemeanoch, Corrievarkie could add 5 GW of additional storage capacity.
• The Scottish Renewables report estimates the creation of 15,000 jobs by 2035 and £6 billion in economic benefit for the UK economy.
• The Government's approach is to remove barriers, facilitate change, and spur innovation for all low-carbon flexibility technologies.
• Up to £69 million has been allocated to accelerate the commercialisation of longer-duration energy storage technologies.
• A business rates exemption for eligible electricity storage facilities will be in place from 2023 to 2035.
• There is a temporary zero VAT rate for battery storage when supplied as part of a qualifying material installation.
• The new clause requires the Secretary of State to bring forward legislation committing £20 billion in CCUS spending within one month of the Act being passed.
• Another clause aims to set out a timeline for track 2 CCUS projects within one month of the Act's passage.
• Track 2 CCUS projects refer to specific carbon capture, usage, and storage initiatives.
• The Government has pledged £20 billion over 20 years for carbon capture and storage starting from 2028.
• This commitment does not have a corresponding Budget line or legislation currently.
• Acorn carbon capture cluster received only £40 million from the UK Government, while the Scottish Government provided £80 million.
• The Peterhead facility's emissions need to be addressed by carbon capture and storage projects for Scotland to meet its 2030 emission reduction target.
• UK Government has spent £40 million supporting the Acorn project.
• Track 1 selected two clusters, including a reserve cluster (Acorn).
• Track 2 will select further two clusters to be deployed by 2030.
• The government aims to capture and store 20-30 million tonnes of CO2 per year by 2030.
• The Scottish Acorn cluster is seeking funding support.
• Investors are experiencing uncertainty about future commitments from the Government.
• The economy is currently strained, and additional funding would likely impact energy bills or taxes.
• Hydrogen trials require financial support.
• Two final proposals for the village trial have been received from gas transporters after extensive consultation.
• An independent external source like a local council must validate strong community support for selecting the trial location.
• The Health and Safety Executive will need to confirm that any community trial can be run safely before proceeding.
• No new licences to search and bore for petroleum will be issued after 1 January 2024.
• The article in Nature states nearly 60% of oil and fossil methane gas, and 90% of coal must remain unextracted to limit warming to 1.5°C.
• The International Energy Agency's roadmap for net zero by 2050 concludes no new oil and gas fields should be approved beyond those committed as of 2021.
• World consensus and academic research indicate that leaving oil and gas reserves untouched is necessary to limit global warming to 1.5°C.
• UK demand for oil and gas has been declining, expected to accelerate as vehicles transition to electric and homes move away from gas heating.
• The new clause seeks to prevent the approval of new exploration licences in the future, aligning with international efforts but is not pressing for a vote.
• New Clause 56 aims to treat onshore wind installations as local infrastructure for planning purposes.
• Regulations under this new clause may amend any primary legislation passed before the passage of this Act.
• The clause is designed to ensure that onshore wind projects are permitted or otherwise regulated in a manner similar to other forms of local infrastructure.
• The UK aims for a low-carbon economy by either 2035 or 2030 according to the Government and Opposition respectively.
• Current offshore wind energy development is around 14 GW or 15 GW.
• Onshore wind deployment has been effectively banned since 2015 in England, leading to a virtual standstill with only three turbines put up recently.
• Onshore wind is currently the cheapest form of renewable energy.
• Hugh Fearnley-Whittingstall sent a letter to Secretaries of State expressing concerns about the potential reneging on promises to lift the onshore wind ban.
• The UK has around 15 GW of onshore wind installed, making it the largest renewable technology in the country.
• Onshore wind generated approximately 10% of electricity in the UK last year.
• Fewer than half of local authorities have an up-to-date local plan.
• Only 11% of local authorities have been able to bring forward a local plan that addresses onshore wind.
• The austerity measures since 2010 have decimated local authority planning departments.
• New clause 58 aims to prohibit hydraulic fracturing after January 1, 2024.
• There is currently a presumption against issuing further hydraulic fractoring consents in the UK.
• The Government's position aligns with the 2019 Conservative manifesto commitment not to support fracking unless it can be proven safe.
• The Minister used the term “moratorium” but not “ban”.
• A vote was held with 5 Ayes and 9 Noes, resulting in the negation of the clause.
• Further consideration is ordered for Thursday 29 June at half-past Eleven o’clock.