The chance to be a global trailblazer in green tech is narrowing– but with bold decisions, the UK can still lead the way

This is a critical month for the UK’s environmental credentials

The US has been widely praised for the landmark Inflation Reduction Act (IRA), which has introduced subsidies and funding to support green innovation as part of a clear decarbonisation strategy. In turn, the European Commission is responding with their own Green Deal Industrial Plan – which also includes measures to support the development of green technology and secure a green legacy for the EU.

So far, the UK Government has provided assurances that green industries are “absolutely strategic” for the country but we are still missing the clear tangible support and decision-making to match this ambition.

If the UK wants to make good on its net zero pledges and be at the forefront of the green arms race, Government must quickly lay out a detailed, timed and costed plan which offers companies like Drax the confidence to invest in this country.

In the past few weeks, alarm bells have been sounded by a whole host of renewable energy companies, including SSE, Scottish Power and Orsted who share this view. Companies are feeling pressure from their investors to instead plant their spades into US soil.

It’s the opportunity of a generation

There is growing international support for the role carbon removals will play in limiting global warming and McKinsey has estimated that by 2050 this could translate into a market likely worth $1 trillion a year. But if the private sector in the UK is going to be able to take advantage of this then it needs certainty that the UK will offer an attractive environment for it to invest in the facilities and to do business.

Bioenergy with Carbon Capture and Storage (BECCS) is one clear example of where Government can take immediate decisive action on carbon removals. BECCS has already been trialled and proven at our power station in North Yorkshire. When up and running at scale it will generate renewable power to support energy security, remove up to 8 million tonnes of carbon a year from the atmosphere, create and protect thousands of jobs, and make the Humber one of the world’s leading centres for decarbonisation.

We are ready

We are ready - and it is now time for Government to start negotiations with developers. For comparison, as part of the IRA, the US has brought forward a clear plan giving companies the certainty they need to invest.?

Over the Atlantic, we are already making progress to agree the locations for new build BECCS plants. We have a clear line of sight for these US projects which allows us to plan and invest.

The UK can be a pioneer of the green industries of the future

There is growing international scientific consensus that large scale carbon capture is needed in order keep 1.5 alive, and over the past nine months the increased interest in pioneering BECCS has been noticeable.

A decision is due this month on UK Government’s Track-1 announcement, which will confirm the carbon capture projects which have been shortlisted for support in the mid-2020s.

Last week, Treasury announced an increase to funding allotted for carbon capture and storage; a positive signal that the UK is moving in the right direction. But as always, the devil will be in the detail. We now need to see the specific projects which Government intends to support and the associated timelines, to give the confidence needed to invest.

A clear statement of support for BECCS at Drax – the only current proven technology which generates reliable, renewable power while permanently removing carbon from the atmosphere - will kickstart delivery of a ￡2bn project which will be the first ever large-scale BECCS project in the world.

We are a British company who has played an important role in providing both the energy security and decarbonisation for this country for the past 50 years. Through BECCS, we want to continue to do so for the next 50 years. With the right decisions over coming weeks, there is still an opportunity for the UK to pioneer this technology at scale, right in the heart of Yorkshire.