Notice

US-UK Strategic Energy Dialogue 2024: UK Industry Roundtable

Published 30 April 2024

UK Industry Roundtable to the Strategic Energy Dialogue, held in partnership with BritishAmerican Business and The Department for Energy Security and Net Zero.

In attendance:

• Marina Skrinar, DESNZ
• Sophie Westlake, DESNZ
• Tom Morley, DESNZ
• Heather Bell, US Embassy
• Simon Harper, BEAMA
• Robert Clews, Bechtel Enterprises
• Sophie Rahemanji, BAB
• Alice Mount, BAB
• Randy Bell, Commonwealth Fusion Systems Energy
• Jennifer Ganten, Commonwealth Fusion Systems Energy
• Kate Poppitt, Hogan Lovells
• Daniel Shapland, Hogan Lovells
• Gareth Thomas, Holtec
• Willie Coetzee, Honeywell
• Matthew Billson, Piclo Energy
• Keith McKinney, Recurrent Energy
• Harry Keeling, Rolls Royce SMR
• Elisabeth Siegel, TAE Technologies
• Will Apps, The Crowne Estate
• Debbie Breasley, Urenco Global

Overview:

On Monday 26 February 2024 a select group of businesses met with the DESNZ Director for International Net Zero: Energy and Trade, Marina Skrinar, and team, to discuss themes reflected in the transatlantic energy agenda in the lead up to the UK-US Strategic Energy Dialogue planned for March 2024. The objective was to discuss how government can better encourage clean energy innovation and deployment. The conversation was facilitated by BritishAmerican Business (Sophie Rahemanji). The meeting was hosted by Hogan Lovells (Kate Poppitt). A meeting with US-based industry stakeholders and the US Department of Energy (DOE) was held in December 2023.

Discussion:

Industry made clear that the UK and the US are leading the way in the global energy transition and recognised that UK announcements such as the Green Industries Growth Accelerator (GiGa) and the stable, regulated approach to clean energy sector support in the UK was driving industry investment and technology deployment at pace. Broadly, 6 key topics were discussed, with some of the main constructive recommendations given by industry including:

1. Financing: – Industry representatives discussed the challenges of financing infrastructure projects and the importance of government contracts to attract private sector finance. IRA was welcomed by the cleaner energy industry given that it incentivised large-scale investment; its tax credits were also technology neutral. Industry supported the work of Great British Nuclear (GBN) but noted that additional funding opportunities would need to be explored for a UK 24 GW of nuclear power by 2050 target, such as encouraging private investment to catalyse the development of additional large-scale projects. The US pursuit of fusion is reliant on public-private partnerships which does work, however additional government support would benefit the sector.

2. Grid infrastructure: – Industry highlighted the importance of having sufficient grid infrastructure for present and future connectivity in the US and UK. To improve grid capacity, using the grid in a smarter, more flexible way is just as important as expanding it. There is a challenge to prepare grid infrastructure for the level of energy provided by various types of nuclear technology that are expected to be ready for use from the 2030s.

3. Supply chain: - Industry discussed potential resource constraints in the global market. To keep up with cleaner energy project demands, for example, off-shore wind; requirements for steel need to be met by the global supply. Supply chains won’t invest until there is transparency of balance between resources and infrastructure building commitments.

4. Standardisation: – Industry emphasised desire for harmonisation of policy and regulation to avoid unnecessary duplication or policy conflicts that slow down projects. Nuclear technology providers would like to see regulatory harmonisation between the UK and the US, and third countries, to enable more seamless export and import. Industry supported the clarity of US and UK policy for the cleaner energy sector. It was noted that regulatory misalignments would need to be addressed to ensure that policy clarity continues to make the UK an attractive market. Industry highlighted the need for data sharing and common data architectures.

5. Workforce: – Industry identified that the number of energy-sector skilled workers must increase to keep up with new plants and facilities projected to open by 2030 and beyond. Recognition was given that the UK is doing well with investing in skilled civil nuclear and fusion workers. Industry called for this investment to be expanded further, including how to stimulate interest among young generations to seek a career in the areas covered by the Strategic Energy Dialogue.

6. US-UK collaboration: – Industry iterated that the UK and US should use the G7 platform to amplify their pragmatic leadership of cleaner technology deployment. For example, both the UK and the US already lead in fusion globally. Further collaboration on carbon capture is also recommended, with lead from the US given the good work from DOE on this area. Industry also recommended the UK and US collaborate to improve fuel supply in the nuclear and aviation sectors to reduce competition in the future. Clarity as to how fuel supply will become available is also needed as many nuclear companies cannot attract investment until this supply chain issue is resolved. Further alignment on taxonomy, carbon border adjustment schemes, sustainable measures and rules, particularly by standardising the measuring of sustainable impact of products, is widely supported.

The discussion concluded that the key topics of interest for the 2024 UK-US Strategic Energy Dialogue agenda should include:

• UK-US policy and regulatory harmonisation
• grid infrastructure flexibility
• preparation for the implementation of the fusion sector
• government de-risking strategies for private investors in expanding cleaner technology industries
• supply chain support, and
• inter-agency cooperation