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Conservatives focus on nuclear and EVs in net-zero vision for 2050

The Conservative Party has unveiled its manifesto for a net-zero carbon economy, which includes commitments to plant more than one million trees and sets aside £1bn for electric vehicle (EV) manufacturing, but fails to match Labour’s ambition in pushing the 2050 timeframe forward.

The Tory plans for achieving net-zero carbon emissions largely stick to the recommendations provided by the Committee on Climate Change (CCC), which claimed that a net-zero target could be achieved at the same cost that is put against achieving the old Climate Change Act, which is between 1-2% of GDP in 2050. The recommendations have since been enshrined into national law.

It was thought that the Tory Party conference would be used to provide more clarity on the net-zero target, specifically whether the new target would encompass all sectors – shipping and aviation are currently covered on a territorial basis – and how carbon capture and storage (CCS) solutions and hydrogen would be supported.

Despite no clarity on most of those measures, the plan does feature a commitment to build a £220m net-zero nuclear fusion plant by 2040. The first stage of the investment will cover the initial five-year development phase of the Spherical Tokamak for Energy Production (STEP).

Other commitments listed by the Tories include plans to plant up to one million trees between 2020 and 2024 to develop the Great Northumberland Forest, deliver £1bn in funding for EVs and hydrogen fuel cell development, and a new Future Homes Standard that will be introduced in 2025 to create “world-leading energy efficiency standards”. Interim regulations for the Future Homes Standard will be introduced from 2020.

Andrea Leadsom, the business, energy and industrial strategy secretary said: “Addressing climate change is a top priority for the Conservative Party, and today’s announcements will not only help us reach our Net Zero 2050 target, but will benefit communities and households – and improve wildlife and wellbeing – while doing so.”

A 20-year gap

The announcement follows last week’s news that Labour Party members had backed a pledge to reduce greenhouse emissions to net-zero by 2030 – two decades earlier that the Conservative target.

The motion also commits the party to take Great Britain’s energy networks and biggest energy suppliers back into public ownership, introduce a complete ban on fracking and make large-scale investments in renewable and low-carbon energy.

The Tory commitments have also been criticised by green groups for failing to strengthen commitments that could move the ban on petrol and diesel cars forwards or encourage reductions in meat-based diets and eating. Friends of the Earth’s chief executive Craig Bennett claimed that the measures were “nowhere near commensurate” to tackle the issues of climate change.

“For decades, we’ve been promised that nuclear fusion is ‘just a decade away’ and yet it’s never materialised,” Bennett said. “Why throw money away on tech-fix pipe dreams, at precisely the moment that onshore and offshore wind and solar are delivering better returns than ever before?

“If the government is serious about slashing climate pollution it needs to stop fracking, stop filling the skies with more planes, and stop funding oil and gas projects abroad and instead invest in public transport, renewable energy and doubling UK tree cover.”

Theresa Villiers, the environment secretary added: “The planting of one million trees will be fundamental in our commitment to be the first generation to leave the natural environment in a better state than we found it. They will enhance our landscape, improve our quality of life and protect the climate for future generations.”

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The UK Government is committing £220M to the conceptual design of a fusion power station – the Spherical Tokamak for Energy Production (STEP).

Secretary of State for Business, Energy and Industrial Strategy, Rt Hon Andrea Leadsom MP, announced the funding package during a visit to the UK Atomic Energy Authority’s Culham Science Centre HQ in Oxfordshire – the UK’s world-leading fusion research laboratory.

Fusion offers a virtually limitless source of cleaner electricity by copying the processes that power the Sun – the collision of hydrogen atoms to release large amounts of energy. Researchers around the globe are now developing fusion reactors that can turn this into a commercial technology to help satisfy the world’s ever-increasing demand for energy.

STEP will be an innovative plan for a commercially-viable fusion power station – offering the realistic prospect of constructing a powerplant by 2040. The investment will allow engineers and scientists to produce a conceptual design for the reactor (known as a ‘tokamak’) that will generate fusion energy and convert it into electricity. UKAEA and partners from industry and academia will pool their expertise to complete the design by 2024.

The STEP programme will create 300 jobs directly, with even more in the UK fusion supply chain. In addition, the spin-outs from the design work are expected to be enormous – both in terms of synergies with other fusion powerplant design activities (such as Europe’s ‘DEMO’ prototype power station) and other hi-tech industries.

STEP builds on UKAEA’s expertise in developing so-called ‘spherical tokamaks’ – compact and efficient fusion devices that could offer an economical route to commercial fusion power. The new MAST Upgrade spherical tokamak experiment is due to start operations at Culham early in 2020. Its work will play a key role in the STEP design.

Andrea Leadsom, Secretary of State for Business, Energy and Industrial Strategy, said: “This is a bold and ambitious investment in the energy technology of the future. Nuclear fusion has the potential to be an unlimited clean, safe and carbon-free energy source and we want the first commercially viable machine to be in the U.K.

“This long-term investment will build on the UK’s scientific leadership, driving advancements in materials science, plasma physics and robotics to support new hi-tech jobs and exports.”

Professor Ian Chapman, CEO of the UK Atomic Energy Authority, added: “The UK has a proud heritage of pioneering developments in fusion research. This announcement demonstrates the UK government’s commitment to translating that R&D leadership into a working fusion reactor. We are excited to work with our partners to take the next step towards a fusion-powered future.”

If your company or research organisation is interested in taking part in STEP, more information about the project is here: https://www.gov.uk/government/news/next-step-in-fusion

The STEP Procurement Plan Schedule is available here: https://www.gov.uk/government/publications/step-procurment-opportunities

Contact: For more information please contact Nick Holloway, UKAEA Media Manager, on 01235 466232 or nick.holloway@ukaea.uk.

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UK–EU power links vital

While politically the UK may soon be decoupled from the EU, it is busy building power grid links with mainland Europe. And some say it should build more, creating offshore wind hubs and network systems to help with green power balancing, exports and imports. For example, the planned 1.4 GW HVDC Viking inter-connector between Denmark and Lincolnshire will pass through or near some big offshore wind farms. And more are on the horizon.

National Grid has done comparative connection studies for the proposed 1.6 GW Eurolink to the Netherlands and 1.5 GW Nautilus link to Belgium (completion expected by around 2025 and 2027, respectively) with the proposed Sizewell C nuclear plant area in mind, but also local offshore wind projects. Some say the UK should be looking to build many tens of gigawatts of offshore wind in the mid-North Sea and also offshore connection hubs, like the artificial island proposed for Dogger Bank, almost 100 miles out from Hull.

Grid upgrade needed

Certainly, the resource is vast, and the study of European grid issues (PDF) produced by ENTSO-E, the European Network of Transmission System Operators for Electricity, sees the UK as one of the key hubs in the network. The ENTSO-E study of EU grid issues up to 2040 updates its 2016 “Ten Year Network Development Plan” (TYNPD). It says that there will be a need for increased transmission capacity in some places, both internally and to other countries, to make the system work in 2040. This is largely due to the increasing levels and use of renewables to supply all areas of the European grid; the report says that up to 75% of the total demand of renewable energy will be reached by 2040, so that “European countries will more than ever need to rely on each other through cross-border exchanges”.

Physical connector links with the EU energy system could mean having to comply with internal EU energy market rules

Dave Elliott

However, interestingly, it suggests that there will be different balances in net supply across the EU. From ENTSO-E’s studies, it looks like NW wind, offshore especially, dominates, with a lot of surplus power shifted east at times. Much of that will presumably be from the North Sea. But it will be variable, so there will be technical, regulatory and market challenges to ensure stability, with increased system flexibility. And a need for new grids.

ENTSO-E says that, overall, the benefits of the expanded network far outweigh the necessary efforts that will need to be mobilized for its realization: “A lack of new investments by 2040 would hinder the development of the integrated energy market and would lead to a lack of competitiveness.In turn, this would increase prices on electricity markets leading to higher bills for consumers. By 2040, the ‘No Grid’ extra bill (€43 billion a year in the average case) would be largely above the expected cost of the new grid (€150 bn in total in the TYNDP 2016 plus internal reinforcements, 25% discount rate)”. A lack of investments would also affect the stability of the overall grid and could, in some regions, “threaten the continued access to electricity which also has a cost for society”. And finally, in all the scenarios the organization looked at, “without grid extension, Europe will not meet its climate targets”.

UK benefits

The UK has to be part of this, if only for parochial reasons. It will have a lot of surplus renewable power to export at times, as the renewable capacity builds up to 40, 50 and 60 GW, more than enough much of the time to meet the country’s needs (summer night-time demand is around 20 GW, peak winter demand under 60 GW).  At times though, when UK renewable availability is low and demand high, it may need some top-ups via the grid interconnectors. That said, the exports are likely to dominate, so the UK would be a net earner of substantial income, assuming the surplus can be sold at reasonable prices. That would help offset the cost of building up renewables, and the links can also clearly help with balancing. As the climate policy think tank E3G said earlier this year, the UK government must continue to work closely with the EU to develop cross-border power grid interconnections after Brexit, if it is to ensure the lowest-cost decarbonization pathway. More linking of the UK to EU power grids could help boost its energy security and flexibility as renewables grow.

Last year, interconnectors provided 6% of UK power supply, via the four existing links, making the UK a net importer of power across these links. However, as I noted in my last post, its wind potential is very large, so that pattern should change as more renewables are installed in the UK. Indeed it already has, with the UK being a net exporter to France for much of this year. The government currently plans to have at least 9 GW more grid link capacity. However, the ability to trade profitably depends on many factors — not just the availability of capacity and grid links, but also demand patterns, prices, the regulatory framework and wider policy context. The E3G paper warned that leaving the EU will “severely reduce” the UK’s ability to influence EU energy policy in line with its interests, which may make reaping the full benefits of greater inter-links harder. It could render the UK a rule-taker from the EU in some respects, as physical connector links with the EU energy system could mean having to comply with internal EU energy market rules, such as those covering energy, environment, state aid and competition. Sounds like a familiar issue…

The UK has some of the key resources needed for the emerging Europe-wide grid system (including its vast offshore wind resource) and the power engineering and marine technology expertise (including for offshore wind and undersea links). It may not like the EU single power market any more, but it may nevertheless need to get into it. At least that is the logic of the energy system. Political logic may be different, although it is perhaps worrying that, reportedly, Ireland is looking to a new 500 mile under-sea HVDC power link to France, and the EU market, by-passing the UK, with some funding from the EU.  It may also be worrying that, post-Brexit,  the UK will presumably miss out on EU funding for grid development – like the €800 m available  under the Connecting Europe programme for interconnectors. That’s supporting some of the already-planned and agreed UK links, but the UK may not be eligible for more after Brexit. So it’s all a bit uncertain and a bit of a mess, whereas the need for links is getting ever clearer and UK green power capacity is building up — offering an export potential.

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UK energy suppliers could go bust after Saudi attacks, experts warn

An attack on Saudi oil facilities might turn the screws on struggling energy suppliers, experts have warned, a year after a winter that felled several smaller firms.

More companies might face bankruptcy if they have not bought enough energy in advance to supply their customers through what could be an unusually chilly winter.

Several energy sites in Saudi Arabia were attacked over the weekend, sending oil markets into a panic, with prices jumping as much as 20 per cent.

Energy suppliers often buy gas and electricity from the wholesale market in advance – so-called hedging – to avoid any shocks. However some do not hedge.

“Suppliers who continue to sell fixed prices without fixed wholesale costs will again be placed at risk of failure,” Ian Barker, the managing partner at Bfy Consulting, told City A.M.

Meanwhile the deadline to pay into Ofgem’s fund to finance renewable generation passed last month. All suppliers that do not source enough of their energy from renewable sources are forced to pay into the fund. They can defer payment to 31 October.

Last year the so-called renewable obligation was a good bellwether for struggling companies. In November Ofgem said that Economy Energy and Spark Energy had not met their obligations under the scheme. Both later went bust.

They were among around a dozen small suppliers to go out of business in less than two years.

“When you add in the impending deadline for renewable obligations, the cash flow situation could become very tight for a few of the smaller energy companies, who trade day to day on the commodities market,” Rik Smith at Uswitch told City A.M.

Some suppliers might be able to pass on costs to suppliers, but many customers are locked into year-long deals where they are guaranteed a per-unit price. And even those on variable tariffs are protected by an upper limit, enforced by Ofgem, which is set to be lowered from 1 October.

“With an increase in oil prices expected to lead to a commensurate rise in gas and electricity prices, this will be reflected in higher tariffs for customers going forward, while existing fixed-price fixed-duration tariffs may also be withdrawn,” said Craig Lowrey at Cornwall Insight, an energy consultancy.

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Fuel prices: A really simple guide to why they go up and down

When you pull up at the pumps, you’re probably not thinking about the knife-edge, geo-political tensions between Saudi Arabia and Iran.

You’re thinking about how much it’s going to cost to fill up and which bag of sweets to get for the glove box.

But what’s happening thousands of miles away in the Middle East has an impact.

So here’s a really simple guide on what causes the price of fuel to go up and down.

Tax is the big one

An attack on Saudi oil facilities has knocked out 5% of the world’s oil supply.

It’s got people worried we’re about to see a big jump in the price of petrol and diesel.

Not necessarily.

“The biggest thing isn’t what’s going on in Saudi or Iran, it’s the Chancellor of the Exchequer,” says Phillip Gomm from the RAC Foundation.

That’s because around 60% of the price you pay for fuel is tax – a mixture of fuel duty and VAT. So just because the price of oil doubles, that doesn’t mean we’ll see the same jump at the pumps.

It’s too soon to say how much the price will go up

The wholesale price is how much the oil costs when it leaves the refinery – that’s the price retailers pay for it.

When supply is disrupted – such as an attack on an oilfield – wholesale prices go up.

“We’ll see the wholesale price go up quite quickly but then it takes a couple of weeks for that to get passed on to drivers,” says Philip.

But because we don’t know how long the supply will be disrupted, it’s impossible to predict how much fuel costs will increase, or for how long.

The exchange rate is important

Oil is priced and traded in dollars. So if you have a weak exchange rate – how many dollars you can buy with sterling – it’s going to cost more in pounds to buy that fuel.

Instability doesn’t always mean big price rises

“If other suppliers think there’s a chance to sell more fuel because the Saudi supply has been interrupted, they will flood the market with more of their stock. If they’ve got spare oil, they’ll try and shift a bit more,” says Philip.

He says there isn’t a shortage of oil across the globe, it just depends what’s going on.

“The market has adjusted without blinking over the last two years to the loss for political reasons of over two millions barrels a day of production from Venezuela and Iran,” says Prof Nick Butler, who’s an expert in international energy policy.

Of course, if tensions in the Middle East spill over into conflict, it’s a different story.

Production facilities, trading routes and pipelines which thread through the region could all be vulnerable to future attacks – which could push up prices long-term.

The cost of a barrel of oil is soaring since the Saudi attack – roughly $65 (£52.20) a barrel, depending on when you read this.

But, according to Philip Gomm, “we’re miles off the $143 (£114) a barrel in 2008 – so we’re a long way from historic highs.

“It’s a brave person who’ll predict how much prices will go up.”

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SSE to cut energy prices by 6% from October 1, in line with UK price cap

LONDON (Reuters) – Britain’s SSE (SSE.L) will cut energy bills for customers on its standard tariff from Oct. 1, with prices falling 6% in line with regulator Ofgem’s price cap, the company said on Wednesday.

The cap on default electricity and gas bills – a flagship policy of former British Prime Minister Theresa May to end what she called “rip-off” prices – came into force in January.

In August Ofgem said the cap would be lowered by 6% from Oct. 1 to 1,179 pounds per year for average energy use to reflect lower wholesale energy prices.

 

SSE said an average user on its standard tariff would pay 6% less, or 1,178.58 pounds a year, and those on pre-pay meters would pay an average of 1,216.90 pounds a year.

However, a small number of customers who use very little energy could see an increase in prices, SSE said, due to a change in the way the standard charge rates – the fees paid by all customers for access to the energy system – are calculated.

“All customers who are negatively impacted by the change will receive a letter/email to explain how the Ofgem cap works and why we’re changing our prices,” SSE said.

Britain’s Competition and Markets Authority said earlier this year that the way standard charges are calculated should better reflect costs for suppliers.

Britain’s other five big six energy providers – E.ON (EONGn.DE), Centrica’s (CNA.L) British Gas, Iberdrola’s (IBE.MC) Scottish Power, Innogy’s (IGY.DE) npower and EDF’s (EDF.PA) EDF Energy – are all expected to make similar price cut announcements ahead of the Oct. 1 deadline.

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French regulator puts EDF Flamanville nuclear plant on safety watch

PARIS (Reuters) – French nuclear regulator ASN said it has put EDF’s Flamanville 1 and 2 reactors under increased surveillance following a series of shortcomings in maintenance and contractor oversight.

The ASN’s action is the latest in a long series of technical and operational issues that have bedevilled EDF in recent months and raised new concerns about the state-controlled utility’s safety culture.

The regulator said in a statement there had been a high number of significant shortcomings in the Flamanville plant’s maintenance and in the oversight of contractors in the plant, as well as insufficient quality of documentation. It added that it had summoned the plant’s director and ordered him to submit an action plan to improve plant operation.

EDF (EDF.PA) did not dispute the ASN’s ruling.

“We accept the ASN’s diagnosis and we accept its decision. That is why we submitted an action plan in August to resolve the problems,” an EDF spokesman said.

EDF’s Belleville nuclear plant on the Loire river has also been under increased surveillance since 2017.

The problems at the Flamanville 1 and 2 reactors are not directly related to the many problems with a third nuclear reactor that EDF is building on the same site. Flamanville 3 is a decade behind schedule and its cost has tripled to nearly 11 billion euros and is likely to rise further.

Separately, EDF said on Tuesday it had found problems with weldings on the steam generators of some existing reactors, sending its shares down 6.8% on fears that the faults could lead to reactor closures.

The shares recovered some of the losses to rise 5% on Wednesday. They are down 28% over the past 12 months, making EDF the second-worst performer in the Stoxx European Utilities index .SX6P

SAFETY CULTURE

“There is a chain of control from reactor builder Framatome, to nuclear plant operator EDF and regulator ASN, but it has been demonstrated over and over again that this chain of control is malfunctioning. Every few months there is a new problem,” World Nuclear Industry Status Report author Mycle Schneider said.

Schneider said there had been no follow-up to a 2018 French parliament investigation into nuclear safety and security.

A parliament report reut.rs/2kE2IQ7 published in July 2018 concluded that France’s nuclear plants are a safety threat because of their excessive reliance on outsourcing, the risk of terror attacks and a lack of operational rigour.

Unlike the US, Russia and Japan, France has had no major nuclear nuclear accidents such as Three Mile Island, Chernobyl or Fukushima and its regulator ASN is seen as independent.

But EDF’s long series of problems – both at its existing fleet of 58 nuclear reactors and at the EPR reactors under construction in Flamanville and in Olkiluoto, Finland – have tarnished EDF’s image as a leader in nuclear technology and weighed on its ability to sell nuclear plants abroad.

While Russian rival Rosatom here has a $133 billion order book here reactors worldwide, EDF’s only foreign project is for two EPR reactors at Britain’s Hinkley Point, in a contract with its own UK arm, EDF Energy.

“Sometimes there are weak signals, but we are putting in place procedures. Safety is our number one concern, it is in our DNA,” the EDF spokesman said.

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Eversmart Energy collapses to leave 29,000 customers without supplier

A green energy firm with more than 29,000 customers has collapsed, becoming the sixth supplier this year to go bust.

Eversmart Energy confirmed it had ceased to trade in a short note on its website on Friday.

Industry regulator Ofgem said it would appoint a company to take on all of Eversmart’s customers, advising them not to switch to a new provider until this process was completed.

The collapsed firm supplied energy to 29,000 households and “a very small number” of businesses, Ofgem said.

 

Philippa Pickford, the regulator’s director for future retail markets, said: “Eversmart Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.

“Ofgem will now choose a new supplier for you and whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”

Eversmart did not say why it had ceased trading, but the Energy Ombudsman said complaints about the Manchester-based firm had soared from 55 last year to 225 in the first eight months of 2019.

Energy Ombudsman chief executive Matthew Vickers said: “We have seen a significant increase in complaints about Eversmart Energy, receiving four times as many complaints so far this year as we did in the whole of last year.

“Billing and switching problems have been the main drivers of unresolved complaints about the company.”

Eversmart was named the second worst supplier for customer service in a report by the Energy Ombudsman last year.

Last year the firm was criticised for launching a low-cost tariff in which households had to pay about £1,000 for a year’s worth of energy up front.

Bosses said at the time claimed the tariff was “better value than an Isa or a high street savings account”, but Citizens Advice warned the rest of the industry would be forced to pick up huge outstanding debts if the supplier went bust.

It is not known if the supplier who picks up Eversmart’s customers will honour the 12 per cent interest they were promised, or how many of the 29,000 customers were on the tariff.

Eversmart is the 13th supplier to drop out of the UK market since the beginning of last year. Its collapse comes three weeks after competitor Solarplicity ceased trading.

Gillian Guy, chief executive of Citizens Advice, said: “Our research shows this unlucky baker’s dozen of failed companies has left behind at least £172 million in unpaid costs. These will be picked up by other consumers through higher bills.

“When a supplier goes bust, customer credit balances are protected. But all of us will eventually pay for honouring them through increased bills.

Ofgem warned last month more providers are to go bust or merge after a huge increase in the number of small firms entering the market in recent years. The regulator announced stricter tests on new suppliers’ financial health earlier this year under proposals designed to stem the rising number of failures.

Emma Bush, energy expert at price comparison service uSwitch, added: “With yet another supplier going out of business, Ofgem needs to press ahead with its reforms for regular health checks on existing energy companies to ensure each and every one can finance its operations while upholding a high level of customer service.

“Regular stress-tests for suppliers and ongoing fit-and-proper person assessments would help that.”

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Energy firms plan UK’s first carbon-neutral ‘industrial cluster’

Energy companies have ignited multibillion-pound plans for the UK’s first carbon-neutral “industrial cluster” in the Humber.

An alliance of companies including National Grid, Drax and Norway’s state energy company, Equinor, are leading a campaign to shrink the carbon footprint of Britain’s most polluting industrial zone.

The cluster includes hundreds of refineries, factories and the Drax coal-fired power plant near the Humber estuary, safeguarding 55,000 jobs and a local industrial economy worth £18bn a year. However, it is also responsible for the highest concentration of industrial emissions in the country, undermining the UK’s goal to become a carbon-neutral economy by 2050.

The alliance plans to trial world-leading technology to capture and store carbon emissions from factory and power plant flues before they enter the atmosphere. It also hopes to use carbon capture while breaking down natural gas to create hydrogen, which can be used in industry, heating and transport without creating climate emissions.

Lord Haskins, the chair of the local enterprise partnership, said it planned to work with businesses across the Humber “to make this ambitious plan a reality”.

“This is a huge opportunity to accelerate clean growth in the Humber while also supporting significant industries to adapt for the future. If we can achieve this goal of becoming carbon neutral on the Humber it would make us a brilliant example not just for the rest of the country, but the rest of the world,” said Haskins, a former Labour adviser and boss of Northern Foods.

UK urban centres are also vying for investment to become the country’s first carbon-neutral city. Bristol has joined the race by vowing to cut its carbon emissions to net zero by 2030 through a £1bn climate scheme. The UK’s first European Green Capital hopes to maintain its green lead by attracting investment from major companies and investors to create a carbon-neutral city.

Marvin Rees, the mayor of Bristol, said its City Leap programme was “a world first” that would lead the way on reducing carbon emissions. “We are creating a decarbonised local energy system that Bristol can be proud of. City Leap is leading the way on carbon reduction, while at the same time addressing important social and economic challenges,” he said.

Bristol council voted unanimously in favour of establishing a net zero-carbon city, meaning any climate emissions must be neutralised by schemes that absorb carbon, after becoming the first to declare a climate emergency.

City Leap aims to bring together international organisations, investors and tech companies to help develop low-carbon solutions that can drive down the city’s greenhouse gas emissions.

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United Oil & Gas Confirms Award Of Four UK North Sea Blocks

(Alliance News) – United Oil & Gas Ltd said Monday it has accepted the formal offer from the Oil & Gas Authority for the awarding of four blocks in the UK North Sea in the UK 31st offshore licensing round.

The oil & gas company now holds a 100% interest in blocks 14/15c, 15/11c, 15/12a and 15/13c, which make up Licence P2480. The blocks cover an area of 500 square kilometres, and includes the Zeta prospect which United estimates could contain around 90 million barrels of in-place oil.

The blocks were awarded on the basis of a low-cost work programme involving the purchase of an existing high-quality 3D seismic dataset and detailed geological and geophysical analysis.

In the same licencing round, United Oil & Gas was provisionally awarded a 10% interest in blocks 98/11b and 98/12 in the English Channel. The company said it expects to receive confirmation on those licence in the coming weeks.

“We are delighted with these awards, which, based on extensive technical work carried out over the available acreage ahead of the application were our primary focus for the 31st round,” said Chief Operating Officer Jonathan Leather.

“This is our second successful UK licencing round and our largest award to date. United has done well to be included in the roster of companies which have been successful in this round, including Chrysaor, Equinor, Chevron and Total,” Leather added.

Shares for United Oil & Gas were untraded on Monday, last quoted at 4.07 pence in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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