Drax plans on converting coal-era power stations into data centres by 2027
Drax Group announced on Thursday that it could convert a part of its power plant in Yorkshire, Northern England, into an data centre by 2027. The land, cooling systems, and transformers were previously used for coal generation. Europe's old coal- and gas-fired plants are in need of a new lease on life. Tech giants like Microsoft and Amazon want to convert them into data centers, using the existing power and water supply, to meet the rise in AI-driven demand for energy. Drax is preparing an application for a 100-megawatt potential data centre on the site, with ambitions of expanding capacity beyond 1 gigawatt by 2031.
UK consumers face higher energy bills after regulator approves $37 billion grid upgrade
The British Energy Regulator has approved an investment of 28 billion pounds ($37.33 billion), over the next five-years, to ensure that the energy system is reliable and safe in the future. This is part of a plan to upgrade the energy system which will increase consumer bills by 108 pounds per year. The investment exceeds the provisional estimate of 24 billion pounds made by regulator Ofgem back in July, despite the British Government's promise to lower energy prices. Jonathan Brearley, Ofgem's CEO, said that the investment would support the transition to alternative energy sources and help support new industrial clients to drive economic growth.
UK withdraws financial support for TotalEnergies Mozambique Liquefied Natural Gas Project
On Monday, the British government announced that it had decided to stop UK Export Finance from supporting TotalEnergies' Mozambique Liquefied Natural Gas Project. In 2020, the UKEF had committed to providing financial support for the $20 billion project. The project was supposed to turn Africa into a major LNG exporter for Europe and Asia. However, it was stopped in 2021 because of an islamist insurgency. In a press release, British business minister Peter Kyle stated that "my officials have evaluated risks surrounding the project and it is His Majesty’s Government's view that these risks have grown since 2020".
UK court rejects challenge to the issuing of oil exploration licenses
The High Court of London ruled that Britain's decision on Friday to grant more than 20 oil and gas exploration licenses was legal. This ruling dismissed a challenge from campaigners who claimed the government had failed to take into account the effects on climate change. Oceana UK, a marine conservation organization in the UK, brought a case against 28 licences issued by the previous British government on May 20, 2024. It also claimed that the licenses did not assess the risks to marine life. The British energy department, which had not defended similar cases following a Supreme Court ruling in 2024, opposed the case. It said that the licences were only for early exploration.
Britian Reforms Energy Scheme to Prioritize Renewables Projects
The British government on Tuesday made changes to its main scheme for promoting clean energy projects, extending contract lengths and changing how auction budgets are set in a bid to accelerate the roll-out of renewable energy.Offshore wind is at the heart of Britain's plans to decarbonise its electricity sector by 2030. It aims to boost capacity to 43-50 gigawatts by the end of the decade, from around 15 GW now, although a government report in November said it would be a challenge to reach that goal.Britain's Contracts for Difference scheme is its main mechanism for securing clean energy projects and it holds annual auctions for subsidies…
Britain accelerates clean energy projects through a new energy reform scheme
The British government made changes on Tuesday to its main scheme to promote clean energy projects. Contract lengths were extended and auction budgets were changed in an effort to speed up the rollout of renewable energy. Britain's plans for decarbonising its electricity sector are centered around offshore wind. The aim is to increase capacity from 15 GW to 43-50 Gigawatts (GW) by the end decade. A government report published in November warned that it would be difficult to achieve this goal. The Contracts for Different scheme in Britain is the main way to secure clean energy projects. It holds annual auctions, which offer a minimum guaranteed price for power produced.
UK rejects zonal energy pricing
The British government is not moving to a zoned system of wholesale energy prices, but will instead try to gain greater control over the planning process in order to determine where to build clean energy infrastructure. The UK, with some of the world's highest electricity prices, struggles to find a way to build wind and solar farms, as well as transport them to the various parts of the country. The government had looked at dividing the country into zones with a pricing system based on demand and supply, hoping to encourage businesses to move closer to renewable sources of energy, and potentially reduce the cost for transmission.
Britain Rejects Moroccan Subsea Power Project In Favor of Domestic Solutions
Britain has rejected a 25 billion pound ($34.39 billion) Moroccan renewable energy project that would have used solar and wind power from the Sahara to supply up to seven million UK homes.The British government, which is aiming to largely decarbonise its electricity sector by 2030, said on Thursday it believed domestic projects could offer better economic benefits."The government has concluded that it is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK Power Project," energy department minister Michael Shanks said in a written statement to parliament.He also said the project did not clearly align strategically with th
UK-based Balfour Beatty awarded $1.14 billion contract to build new gas power plants
Technip Energies, a French energy company, awarded Balfour Beatty of Britain a contract worth 833 million pounds ($1.14 billion). The project involves the construction of a UK gas-fired power plant. Balfour Beatty announced that construction on the plant, where 1,500 workers will be employed, will begin later this year and will end in 2028. The British Government is pushing clean energy initiatives in order to reduce energy bills and decrease reliance on fossil fuels imported. A strategy for the industry, made public this week, stated that the country would give energy-intensive companies exemptions and reduce their high energy costs.
Miliband pledges to lead the way in clean energy and demand corporate net-zero strategies
Ed Miliband, the energy secretary, said that Britain is on the right track by cutting emissions and investing in a green economy. He also pledged to press large companies to explain how they will align their business with this shift. Opposition parties are putting pressure on the government over perceived costs associated with the move to net zero emission at a moment when energy prices remain high after Europe has shifted away from Russian imports due to Moscow's invasion of Ukraine in 2022. Miliband, speaking to climate investors, scientists…
Treasury yields are easing with US stocks flat or up; investors evaluate US tax bill
The 30-year U.S. Bond yields rose to their highest level in nearly 19 months, before falling on Thursday. Worries about the U.S. Fiscal Outlook and the demand for government bonds remained, while Wall Street stocks ended either flat or slightly higher. After recent losses, the U.S. Dollar has strengthened. The yields increased earlier, after the U.S. House of Representatives approved President Donald Trump's proposed tax bill with a single vote. This added to concerns about the debt burden of the country. Moody's was the last major credit rating agency to remove the U.S. from its triple-A status late last week. Some buyers were attracted by the recent drop in bond prices.
Britain Emphasizes Collaboration on Energy Security at Global Summit
Britain urged closer international cooperation to improve energy security on Thursday, telling dozens of other governments and business leaders that they would otherwise be vulnerable to those who were willing to weaponise supplies.Security of energy supply shot up the agenda of countries around the world after Russia's full-scale invasion of Ukraine in 2022 drove up global prices and pushed the EU to curb its reliance on Russian fuels."Energy security is national security...
FT reports that UK Treasury is considering cutting funding for GB Energy
The Financial Times reported that Britain's Treasury Department is considering cutting funding plans for the state-backed energy company GB Energy during a review of spending scheduled for June. The British government created GB Energy last year with a budget of 8.3 billion pounds (10.73 billion dollars) and envisioned it as its main tool for driving investment in renewable energies. The Crown Estate, which manages the public holdings of the British monarchy, was to be partnered with the company to lease seabeds for 20-30 gigawatts by 2030. A request for comment was not immediately responded to by the UK Treasury or Britain's Energy Department.
UK announces plans to reform subsidy schemes in order to accelerate green energy projects
The British Government on Friday announced plans to reform its flagship Contracts for Difference scheme (CfD), which will remove planning obstacles and accelerate green energy projects in particular offshore wind farms. The Department for Energy Security and Net Zero, (DESNZ), has announced that it will relax eligibility criteria for planning consent for offshore fixed-bottom wind and extend the CfD contract beyond its current 15 year term. CfDs is a government-backed price guarantee for electricity producers. The government also wants to alter the way that budgets are published and set for offshore wind, including the ability to view bid data in an anonymous form.
Additional Sanctions Possible for Russian Oil tankers
The Biden administration plans to impose more sanctions on Russia over its war on Ukraine, taking aim at its oil revenues with action against tankers carrying Russian crude, three sources with knowledge of the matter said.President Joe Biden's administration has sought to shore up support for Ukraine before President-elect Donald Trump takes office on Jan. 20, given the Republican leader's frequent complaints about the cost of U.S. support for Ukraine."It's a very substantial package. Two Russian oil companies, more than 100 tankers, oil traders…
Equinor, BP and TotalEnergies invest in Britain's carbon-capture projects
They announced on Tuesday that Equinor, BP, and TotalEnergies have made the final investment decisions for two of Britain's first projects to capture and store carbon in the north. The Northern Endurance Partnership Project, which is a joint venture between the three companies, will store carbon dioxide permanently for an initial amount of 4 million tonnes per year. Equinor holds 45% of NEP. BP has 45%, and TotalEnergies 10%. Equinor, BP and BP are also partners on the Net Zero Teeside Power Project. This project is a 742 megawatts (MW), gas-fired plant with carbon capture. BP owns 75% of this project and Equinor 25%.
Developer: Five investors bid for UK Sizewell C nuclear stake in the bidding process
The project developer said on Thursday that five investors were involved in the bid to buy stakes in Sizewell C, the nuclear plant being constructed in Britain by EDF and the British government. The Labour Party in Britain has stated that nuclear plants are important to help the country achieve its climate goals and decarbonise their electricity sector. The project is looking for investors to invest in the Sizewell-C nuclear plant. It hopes to make a decision on the financial investment next year. Nigel Cann said, Sizewell C's managing director, "We are in talks with five potential investors." This was on the sidelines an industry event.
UK increases windfall taxes on North Sea Oil and Gas Producers
Finance Minister Rachel Reeves said on Wednesday that the British government would increase its windfall tax for North Sea oil-and-gas producers from 35% to 38% and extend it by one year. Reeves, who presented the first budget of the new Labour Government, said that the increase in the windfall tax - also known as the Energy Profits Levy - will come into effect on November 1. The headline tax rate for oil and gas activity is now 78%. This is among the highest rates in the world. The duration of the law will be extended an additional year, until March 2030.
Financial Times - Oct 16
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch for the accuracy of these reports. BBC, the British broadcaster, has announced plans for 155 job cuts across its news operations. This is part of a larger cost-cutting plan worth 700 million pounds (915 million dollars). Woodside Energy, an Australian oil and natural gas company, announced on Wednesday that it will delist next month from the London Stock Exchange in order to cut down the administration costs of the business. Ratings agency Moody's warned that UK water companies may struggle to raise capital by 2030…
British Business – September 6
These are the most popular stories in the British business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. According to a new study, British pension funds have the lowest level of support for their own stock market among developed economies. This will fuel debates about reforming UK retirement pots in order to boost the London Stock Exchange. BMW plans to launch its first hydrogen powered vehicle in 2028 using the fuel cell technology it developed with Toyota Motor Corp. ASOS, the British online retailer…