Letter to Energy Review Team, Department
of Trade and Industry from Shell International Limited
ENERGY POLICY
REVIEW CONSULTATION
Shell is pleased to respond to the Energy Review
consultation. Set out in the attached[6]
is Shell's response to the questions asked and comments invited.
Our response is quite extensive and we have tried to synthesise
our points into a "vision in five parts", as follows:
— Energy efficiency: Energy
efficiency measures are required across all sectors, whether power
generation, the built environment or transport. Measures should
be based on market incentives but would also include encouragement
of more energy-efficient behaviours and regulation, where appropriate.
— Energy diversification: Diversification
of energy supply is the proper response to risk and uncertainty.
Diversification provides resilience. Competitive market forces
should be used to the full.
— The best use of indigenous resources:
It should be ensured that the maximum oil and gas production
is achieved from the UK Continental Shelf and also that best use
is made of indigenous renewable resources, particularly offshore
wind.
— Reducing carbon emissions: Carbon
emissions are reduced through energy efficiency, through "greener
fossil fuels" including carbon capture and storage, and through
the use of renewable energy, including bio fuels and wind. Emission
trading schemes play a vital role.
— Solutions through people: The
support of the public is needed. Energy efficiency and low carbon
behaviours need to be encouraged. People are fundamental to the
science, technology and engineering that will be required.
In support of the goals of the Energy Review,
Shell has expertise in the following areas:
— Exploration and production of
oil and gas: Shell is a leading North Sea operator and is
firmly committed to the North Sea for the long-term. "North
Sea" comprises UK and non-UK sectors. Shell's participation
in the North Sea as a whole offers benefits of integration.
— Clean coal technology: Shell
has a leading technology for clean gasification of coal, which
better enables carbon capture and storage. To date, for example,
14 licences have been sold in China.
— Gas to liquids: Shell has
leading gas to liquids technology, based on a plant in Malaysia
that has been in production since the early 1990s. A much larger
plant is planned for Qatar.
— Carbon capture and storage:
This comprises a wide range of technologies. Shell is involved
in developments across this range. Shell recently announced a
joint venture with Statoil for a major carbon capture and storage
project in the Norwegian Sector of the North Sea.
— Wind: Shell is one of the
top 10 players in the wind industry. With partners, Shell is hoping
to build what would be one of the world's largest offshore wind
farms in the Thames estuary. Shell also has wind operations in
North America, in Holland and is hoping to develop wind operations
in China.
— Bio fuels: Shell is the world's
largest marketer of bio fuels. Shell is involved in joint ventures
on second-generation bio fuels using crop waste and biomass.
— Thin-film solar: Shell has
leading thin film solar technology that is now being further developed
in partnership with St Gobain. Thin-film solar seems to offer
the best long-term prospects.
— Hydrogen: Shell is working
in partnerships in North America, Iceland, Europe and Asia on
hydrogen developments for transport.
— Leading fuels and lubricants:
Shell is recognised as an industry leader in advanced fuels
and lubricants. Shell's association with Ferrari in Formula One
racing exemplifies this.
— Emissions trading: Shell made
the first trade on the UK and the European emissions trading systems
and is a significant supporter of such market-based systems for
carbon mitigation.
We look forward to participating in the discussions
on energy policy through the review period
Dermot Grimson
Head of UK External Affairs
14 April 2006
6 Not submitted.
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