UK and US forge energy alliance to ‘bring down prices and help end dependence on Russian energy once and for all’
UK and US have formed a new energy partnership to increase energy security and drive down prices, as part of an initiative announced today by Prime Minister Rishi Sunak and US President Joe Biden.
Under the new ‘UK-US Energy Security and Affordability Partnership’, the parties will work together to reduce global dependence on Russian energy exports, stabilise energy markets and step up collaboration on energy efficiency, nuclear and renewables.
The initiative will be steered by a new UK-US Joint Action Group, led by senior officials from the UK Government and the White House.
This new partnership follows the Prime Minister and President Biden’s meeting at the G20 Summit in Indonesia, where they agreed to take forward work to address short-term energy needs and spearhead efforts to speed up the energy transition.
The Prime Minister said: “Together the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime. We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition. This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all.”
Reacting to a global spike in energy prices, the action group aims to ensure the market delivers sustained increases in the supply of liquified natural gas (LNG) to UK terminals from the US and will collaborate on energy efficiency measures.
In this regard, the US will strive to export at least 9-10 billion cubic metres of LNG over the next year via UK terminals, more than doubling the level exported in 2021 and capitalising on the UK’s import infrastructure.
The group will also work to reduce global reliance on Russian energy by driving efforts to increase energy efficiency and supporting the transition to clean energy, expediting the development of clean hydrogen globally and promoting civil nuclear as a secure use of energy.
The partnership will build on the work of the UK-US Strategic Energy Dialogue led by energy ministers, with a focus on gas supply, energy efficiency, civil nuclear and clean energy.
On civil nuclear, the partnership will promote nuclear energy as a safe and reliable part of the clean energy transition. This includes deepening global collaboration on nuclear fuels and advanced nuclear technologies.
The alliance will also drive international investment in clean energy technologies, from offshore wind to carbon capture.
In order to bolster the security of energy supply, the group will work on measures to increase energy efficiency and reduce demand for gas. It is estimated that there could be an 8% reduction in demand for gas in the UK this winter and the Joint Action Group will explore policy solutions to enhance this efficiency.
Furthermore, the initiative will pursue innovative energy solutions, such as the decarbonisation of the aerospace industry and the development of sustainable aviation fuel technologies, collaborative efforts on electric vehicles, and Energy Smart Appliances.
Collaboration on carbon capture usage and storage (CCUS) and the progress of the Clean Hydrogen Mission will also be continued.