Documents
INTRODUCTION
Since the Government's 2003 Energy White Paper, emissions of carbon dioxide have risen in the UK; investment in renewables has stalled
despite financial encouragement through the Renewables Obligation; the UK has experienced record prices for gas and seen a halt to
investment in gas from generating companies; and the Emissions Trading Scheme has failed to significantly affect the mix of energy
generation or trigger investment in carbon emissions reduction. On top of this security of supply, environmental and cost issues are now
impacting on the confidence of the UK plc - concerns over the current situation were raised by the Confederation of British Industry in
December 2005.
Britain escaped the effects of the gas row between Ukraine and Russia in January 2006, but the dispute demonstrated the real possibility
that overseas gas supplies could be cut. According to the International Energy Agency, proven coal reserves worldwide are equivalent to
almost 200 years of production at current rates and exceed those of oil (36-44 years) and gas (66 Years) by a wide margin. Coal can be
stockpiled safely in the open air and its supply increased quickly whenever it is needed.
In 2005 the Government committed to a strategy for carbon abatement from fossil fuels and backed this up with funding for research and
development and demonstration. At Gleneagles, the G8 committed to research and development into carbon emissions capture and storage.
This report is based on data provided by the International Energy Agency, the Department of Trade & Industry, the Royal Academy of
Engineering, Princeton University and a number of other respected sources. It sets out an agenda for Government in the short term and
the long term, answering the key issues raised by the Government's current Energy Review related to power generation: the economy,
the environment and security of supply.
The key findings of the report:
• Clean Coal Technology is the only short term solution to environmental, economic and security of supply challenges with a vital role as
a long term solution within a diverse energy portfolio.
• Government must invest in Clean Coal to stabilise energy prices. Clean Coal solves the short term environmental and supply
challenges while delivering cheaper electricity than gas or renewables.
• Government must proactively ensure security of supply through a diverse energy portfolio.
The Emissions Trading Scheme has failed to affect the energy mix or reduce carbon emissions.
• Government must invest in Clean Coal if the UK is to close the UK's energy gap; gas prices are rising, nuclear is for the long term and
renewables are clean but only supply energy intermittently.
• Government must lead industry investment in today's Clean Coal Technology, ensuring National Allocation Plan CO2 Allowances trigger
investment in this technology during the 2008 - 2012 period, mirroring Germany's recent success in this area and subsequent rush for
Clean Coal.
• Government must fund demonstrations of CO2 capture and storage during the period 2008 to 2015, proving this second stage Clean
Coal Technology, removing almost all emissions. It should also ensure all future coal plants are ‘capture ready' and compatible with the
emerging technology.
• Government must also invest in nuclear power to replace existing plants. Nuclear energy is climate friendly, a complement to Clean
Coal and essential to securing a diverse energy portfolio.
• Government policy should be determined by the suitability of technologies for global application, tapping into the export potential for
UK plc and maximising the environmental impact worldwide.
• Government policy should prescribe the levels for each energy source (max and min) within the diverse portfolio, recognising the
relative prices for each and the timescales to build up capacity.
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