The Energy Industry Council (EIC) welcomes the UK Government's commitment to advancing carbon capture and storage policies and the announcement of the granting of new oil and gas licenses in the North Sea to bolster the nation's energy security. As a trade association representing the energy supply chain with over 900 members, we firmly believe that carbon capture technologies play a vital role in mitigating emissions and achieving a sustainable energy future.
The Government's emphasis on carbon capture initiatives is a significant step towards addressing climate change and reducing the carbon footprint of the oil and gas industry. We fully support the drive to combine domestic oil and gas production with robust carbon capture and storage technologies to meet the country's energy needs while making tangible progress towards a net-zero emissions target by 2050.
The government's commitment to engaging with Acorn and Viking T&S systems for carbon capture projects is a clear signal of their dedication to fostering innovation in this sector. We eagerly await the outlined process for selecting capture projects for Track-2, which will play a pivotal role in the UK's energy transition journey.
At the EIC, we recognise the importance of the oil and gas industry in the ongoing energy transition. These resources can provide a bridge to cleaner energy alternatives while simultaneously funding and fostering the development of crucial energy transition technologies, including carbon capture and hydrogen, as well as other renewable energy initiatives.
Our report, "Survive & Thrive," based on insights from nearly 100 energy supply chain leaders and released last week, found that supply chain companies have shifted focus to oil and gas projects due to challenges related to consistent work and profitability in renewable energy projects. The report also revealed that oil and gas projects have a significantly higher Final Investment Decision rates compared to green energy. Hopefully this announcement will allow them to invest more in the new technologies.
As the EIC, we collaborate with the government, industry partners, and stakeholders to drive sustainable change and achieve the UK's ambitious energy goals. By supporting carbon capture policies and responsible oil and gas production, we are confident in our collective ability to build a greener and more sustainable planet for generations to come.