I've been away for a bit so can't help notice the global clean technology race that is now playing out in real times - and how this is affecting thinking/politics in UK
So apologies it's a thread alert 🧵1/11
So apologies it's a thread alert 🧵1/11
2/11
For those fresh to this, the US Inflation Reduction Act is offering big subsidies to companies investing in (broadly defined) clean technology in USA, with benefits extending to Canada/Mexico
Which has impacted VW decision on battery factory
ft.com/content/5f78ea…
For those fresh to this, the US Inflation Reduction Act is offering big subsidies to companies investing in (broadly defined) clean technology in USA, with benefits extending to Canada/Mexico
Which has impacted VW decision on battery factory
ft.com/content/5f78ea…
3/11
The EU is also cobbling together a response be (amongst other things) making state aid clearance easier for certain investments, meaning UK is potentially a bit stranded
Which is leading to warnings like this
thetimes.co.uk/article/uk-mus…
The EU is also cobbling together a response be (amongst other things) making state aid clearance easier for certain investments, meaning UK is potentially a bit stranded
Which is leading to warnings like this
thetimes.co.uk/article/uk-mus…
4/11
UK Government is due to respond in tomorrow's #Budget2023 with £20bn investment (although this may be total induced, not actual govt spend) which according to briefing is focused on Carbon Capture and small modular #nuclear plants
businessgreen.com/news/4077378/s…
UK Government is due to respond in tomorrow's #Budget2023 with £20bn investment (although this may be total induced, not actual govt spend) which according to briefing is focused on Carbon Capture and small modular #nuclear plants
businessgreen.com/news/4077378/s…
5/11
But..... Carbon Capture and Storage does not have the characteristics of things that get cheaper with roll-out. It is not a modular technology that is likely to see plummeting prices with higher deployment
It is (rightly) seen as a way of the fossil fuel industry....
But..... Carbon Capture and Storage does not have the characteristics of things that get cheaper with roll-out. It is not a modular technology that is likely to see plummeting prices with higher deployment
It is (rightly) seen as a way of the fossil fuel industry....
5a/11
...extending its lifespan (with all the upstream emissions that involves)
It also has dreadful record on costs and performance
I remember discussing it in late 1990s. In terms of commercial deployment it is still.... being discussed
...extending its lifespan (with all the upstream emissions that involves)
It also has dreadful record on costs and performance
I remember discussing it in late 1990s. In terms of commercial deployment it is still.... being discussed
6/11
What of the other UK Govt choice? SMR #nuclear reactors?
Well none have been built yet. They are all designs and ideas
Tidal & wave power are more advanced in deployment than SMRs
And they have a lot of problems to solve
nbmediacoop.org/2022/07/31/smn…
What of the other UK Govt choice? SMR #nuclear reactors?
Well none have been built yet. They are all designs and ideas
Tidal & wave power are more advanced in deployment than SMRs
And they have a lot of problems to solve
nbmediacoop.org/2022/07/31/smn…
7/11
And of course making #nuclear reactors small does not solve the problems of waste, accident/security/terrorism, proliferation
Whilst these have tended to be airbrushed out of the UK conversation, they have not been solved for nuclear reactors small or big
And of course making #nuclear reactors small does not solve the problems of waste, accident/security/terrorism, proliferation
Whilst these have tended to be airbrushed out of the UK conversation, they have not been solved for nuclear reactors small or big
7a/11
And they remain a problem for climate change
Yup that's right
As I say here, the world needs clean sources of energy that are quick and cheap to deploy. Nuclear is the opposite, and focusing on it saps political energy better used elsewhere
theguardian.com/environment/20…
And they remain a problem for climate change
Yup that's right
As I say here, the world needs clean sources of energy that are quick and cheap to deploy. Nuclear is the opposite, and focusing on it saps political energy better used elsewhere
theguardian.com/environment/20…
8/11
UK actually IS good and ahead in some stuff- offshore wind both fixed and floating, grid management, data handling for clean energy
We need a proper appraisal of what UK is good at , & boost it, not try to chase solutions of vested interests in the oil & nukes industries
UK actually IS good and ahead in some stuff- offshore wind both fixed and floating, grid management, data handling for clean energy
We need a proper appraisal of what UK is good at , & boost it, not try to chase solutions of vested interests in the oil & nukes industries
9/11
Meanwhile how's the UK politics playing out?
Well. Labour seem to be on the case and at least understand the problem, and have their £28bn per year capital investment pot available should they take over, and finger floating wind and hydrogen
ft.com/content/7c6cd3…
Meanwhile how's the UK politics playing out?
Well. Labour seem to be on the case and at least understand the problem, and have their £28bn per year capital investment pot available should they take over, and finger floating wind and hydrogen
ft.com/content/7c6cd3…
10/11
And Shadow Chancellor Rachel Reeves is going to the US to find out more on a learning tour in May
Although as we have seen investment is already sliding away in decisions being taken now
theguardian.com/environment/20…
And Shadow Chancellor Rachel Reeves is going to the US to find out more on a learning tour in May
Although as we have seen investment is already sliding away in decisions being taken now
theguardian.com/environment/20…
11/11
So is UK going to be crushed as collateral damage in the fight for green investment between US & EU (& China)?
Not necessarily. But #Brexit & political chaos have made UK less attractive for long-term investment, where stability of returns, often lower than in....
So is UK going to be crushed as collateral damage in the fight for green investment between US & EU (& China)?
Not necessarily. But #Brexit & political chaos have made UK less attractive for long-term investment, where stability of returns, often lower than in....
11a/11
...volatile commodity markets like oil
High visibility on future revenues (& policy frame) matters as need to look low risk for lowish returns
UK needs to have a smart focused strategy incl skills and wider context to compete
Big job for govt, or whatever colour
ENDS
...volatile commodity markets like oil
High visibility on future revenues (& policy frame) matters as need to look low risk for lowish returns
UK needs to have a smart focused strategy incl skills and wider context to compete
Big job for govt, or whatever colour
ENDS
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