A global centre for oil and gas, London is now leading the world in green energy innovation.

10 key facts about the energy sector in London and the UK.

• UK industry strengths:  The UK is particularly strong in the areas of advisory services, equipment supply, technical consultancy, and the operation and management of power stations.  The UK is a world-leader in the field of renewables, clean coal technologies, and CO2 sequestration and storage.  London is the leading financial centre for Emissions Trading.
• Industry overview: The energy industries’ contribute 3.2% of GDP and employ about 136,000 people.  By far the largest sub-sector is oil and gas extraction followed by electricity.  Total production of primary fuels exceeds 215 million tonnes of oil equivalent.  Petroleum accounts for 43%, natural gas 41%, coal 6% and primary electricity (nuclear and hydro) 9%. (2005) [1]. 
• Renewables:  The use of renewable sources of energy has grown such that 4.2% of UK electricity was generated from renewables in 2005 compared with 1.8% in 1990.  Biofuels and waste – predominantly landfill gas - make up 83% of the UK’s total renewables used [2].    
• Growth prospects: The renewable energy sector is growing annually and is set to grow rapidly from $540 million in to $7 billion in 2010 and $14 billion by 2015.  The UK market in Energy Management is also set to grow from an estimated $5 billion in 2005 to $8 billion in 2010 and $13 billion by 2015 [3]. 
• Government commitment:  The UK is committed to renewable energy as one of the key policies within the Climate Change Programme.  Under the Renewables Obligation (RO), government aims to increase the contribution of electricity from renewables to 10% by 2010 rising to 15% by 2015 and 20% by 2025.
• 350 North Sea oilfields:  The government approved development of a further three oilfields in March 2007 to take the North Sea total to 350.  With 15 - 20 billion barrels remaining in reserves, the North Sea remains critical to the UK’s energy needs and also offers opportunities in carbon capture and storage.
• London leads the way:  London currently has the highest energy-efficiency standards of any city in the UK and is at the forefront of low- and zero-carbon developments.  The Mayor’s Climate Change Action Plan sets out strategies to stabilize London’s emissions at about 600 million tonnes - 60% below 1990 levels - by 2025.  In February 2007, the Mayor announced $148 million over three years to fund four programmes:
  • Green Homes Programme - By making homes more energy efficient annual domestic carbon dioxide emissions can be reduced by 7.7 million tonnes by 2025
  • Green Organisations Programme – potential savings to employers of up to 20% on their energy bills and a five million tonne reduction in emissions
  • Green Energy Programme – the plan is to decentralize energy by moving 25% of London’s energy supply off the National Grid and on to more efficient, local energy systems by 2025  
  • Green Transport Programme – to cut emissions by 4.3 million tonnes annually.
• Energy Action Areas: Four pilot Energy Action Areas (EAAs) have been designated in London to showcase the Mayor’s energy objectives. EEAs are neighbourhoods or regeneration areas that show what carbon reductions can be delivered on brownfield land in an urban environment.  These pilot projects are expected to deliver carbon savings of 40-75% [4]. 
• London Remade: Established in 2001 to create sustainability and environmental solutions through recycling.  In February the project ‘Leave No Footprint’ was launched aiming to divert 2.5 million tonnes of waste from landfill, reduce greenhouse gas emissions, create 1,000 new jobs and attract $379 million of investment into the waste and recycling industry [5]. 
• London Array: A 1GW wind farm being built in the outer Thames Estuary will displace nearly 2 million tonnes of CO2 a year and generate enough electricity to power 750,000 homes [6].  

We provide access to numerous industry bodies including London Remade, London Energy Partnership, the Association of British Independent Oil Exploration Companies, Association of British Offshore Industries, British Chemical Engineering Contractors Association, Energy Industries Council, International Marine Contractors Association and UK Offshore Operators Association.

Contact us to find out how we can help your company grow.

[1] UK energy in brief, July 2006, DTI
[2] Ibid
[3] Emerging markets in the environmental sector, November 2006, UK CEED
[4] London Energy Partnership
[5] London Remade 
[6] London Array