North faces '˜doom or boom' energy challenge

Experts are calling for northern industries to start a clean energy 'revolution', as they warn the region faces a 'doom or boom' challenge to end its reliance on fossil fuels.
Renewables are key to the energy "revolution"Renewables are key to the energy "revolution"
Renewables are key to the energy "revolution"

According to a leading think tank, areas like Yorkshire need to move quickly to harness their green energy potential or risk local businesses being hit by soaring fuel costs.

The organisation encourages policy makers to use Brexit as a springboard for change, due to the North’s strong links with leading energy firms on the continent.

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And it suggests the region should follow Scotland’s lead, and aim to generate 50 percent of its energy from renewables by 2030.

The IPPR North report cites new research by its Northern Energy Taskforce, which indicates the reliance of manufacturing industries on fossil fuels leaves them vulnerable to rising energy costs as traditional energy sources are phased out.

In stark contrast, it claims investment in natural assets – such as wind, solar and tidal power - would see the North “leading the UK and the world as a leader on clean energy”.

The study highlights Green Port Hull and hydrogen projects in the Tees Valley as examples where the region is already innovating.

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But it stresses devolution is the key to unlocking the North’s full potential and ushering in “a new clean energy industrial revolution”.

Commenting on the findings, IPPR North director Ed Cox said it was crucial for industry and policy makers to “get this right post Brexit”.

“Get it wrong, and the North’s economy would face real challenges from high energy costs as fossil fuels run out,” he said.

“Get it right, and the North could be leading the way in clean energy: it’s doom or boom.

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“Local decision-making is really key here, and we need devolved powers over energy policy to lead the way,” he added.

“Northern prosperity is national prosperity and a northern clean energy revolution will be good for families, businesses and the environment.”

According to the study, 48 percent of all renewable power is currently generated in the North, contributing more than £5 billion to the UK economy.

The region creates 71 percent of England’s total biomass power, while nuclear plants at Heysham in the North East representing 40% of the UK’s nuclear capability.

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It notes that demand for gas energy in the North is already set to decrease over the coming years. But it states that as the Scottish Government commits to 50 percent renewable energy by 2030, “the North needs to be empowered to do the same”.

IPPR North researcher Darren Baxter said: “The North has some incredible untapped natural energy assets that could unleash a clean energy revolution.

“This would help all parts of the country transition from fossil fuels, create new tomorrow’s high-tech green jobs, and ultimately see lower energy bills.”

The Government’s recently unveiled Industrial Strategy included a commitment to investing in Yorkshire’s renewable energy markets, with a focus on offshore wind.

The green paper also pledged to keep energy costs down for UK businesses, as the country transitions to a clean, low carbon economy.