Volume 35 Number 3 Reports from the Committee on Climate Change House of Lords Annual Dinner sponsored by Arup & Cadent December 2018 IPCC Special Report 1.5oC – a short summary Cryodiesel: Low carbon transport – Dolphin N2 ENERGY FOCUS

This is not an official publication of the House of Commons or the House of Lords. It has not been approved by either House or its committees. All-Party Parliamentary Groups are informal groups of Members of both Houses with a common interest in particular issues. The views expressed in Energy Focus are those of the individual organisations and contributors and do not necessarily represent the views held by the All-Party Parlia- mentary Group for Energy Studies. The journal of The All-Party Parliamentary Group for Energy Studies Established in 1980, the Parliamentary Group for Energy Studies remains the only All-Party Parliamentary Group representing the entire energy industry. We champion cross-sector energy research and development. The Group’s membership is comprised of over 100 parliamentarians, 100 associate bodies from the private, public and charity sectors and a range of individual members. CHAIRMAN’S

Published three times a year, Energy Focus records the Group’s activities, tracks key energy and environmental developments through parliament, presents articles from leading industry contributors and provides insight into the views and interests of both parliamentarians and officials. FOREWORD

Executive Council

Chairman Ian Liddell-Grainger MP Officers MP | MP | Rt Hon Lord Hunt of Kings Heath OBE | MP Lord O’Neill of Clackmannan | Lord Oxburgh | MP | Lord Redesdale Membership Lead Robert Lane CBE Executive Council OBE MP | Julie Elliott MP | Martin Fry | Ian Graves Dr Simon Harrison | Louise Kingham OBE | Joan MacNaughton CB | Paul Needley | Albert Owen MP | Michael Roberts OBE Ruth Thompson OBE | Stephen Vaughan | Barbara Vest | Simon Virley | Graham Ward CBE | John Wybrew OBE In the run up to the Christmas recess, we are in the throes of the agreement that was Disclaimer: The views expressed in Energy Focus are those of individual organisations and contributors and do not necessarily represent the views held by members of the All-Party Parliamentary Group for Energy Studies. brought back from Brussels on 13th November. The initial clamour has not died down, not even a little bit, but the serious work is underway. We have had a privilege debate on contempt of parliament and five days of debate on the issues themselves, all in preparation for the meaningful Contents vote in January in Parliament.

Foreword 3 Noise around the Brexit debate will, of course, continue to run throughout the next session with Ian Liddell–Grainger MP, Chairman of PGES ever increasing intensity up to the end of March.

CCC Reports 4 Almost unnoticed, the European Court of Justice issued its ruling on an appeal into the Capacity Chris Stark - CEO of the Committee on Climate Change Mechanism. The European Court of Justice annulled the European Commission’s decision not to House of Lords Annual Dinner 8 object to the scheme. The ruling essentially prevents the government from holding future auctions 30th October 2018 - Sponsored by Arup & Cadent and making payments under existing agreements.

IPCC Special Report 1.5oC – a short summary 10 However, the Department for Business, Energy and Industrial Strategy has said it intends to work closely with the European Commission to reinstate the scheme as soon as possible. There are at Sponsored Article - Cryodiesel 12 Simon Brewster, CEO, Dolphin N2 explains a low carbon transport development least six other capacity markets within the EU, it is unclear what action is being taken in these.

Obituary - Lord Skelmersdale 14 The Parliamentary calendar has been drained of ability to do anything whilst the Brexit issue dominates, however, our Minister of State for Energy & Climate Change, the Rt Hon Claire Perry European Court of Justice ruling on the Capacity Mechanism 15 MP has held a Global CCUS Summit in Edinburgh and signed several accords contributing towards reducing global emission. Parliamentary Record Select Committee Statements, Reports And Inquiries 16 As we go to press, there is plenty to look forward to in the new year, when we expect to hear from Oral Questions 18 the new Chairman of Ofgem, the Energy Research Accelerator and the Durham Energy Institute. We will also have speaker meetings on transport and heat. Legislation 19 PGES is growing in stature, leading with expertise on issues as they arise. Our Associate and Academic Membership is increasing in strength. Our Parliamentary Members, despite the

Cover image original work, drawn by annietheillustrator.co.uk. ©PGES 2018, prints available. pressures of political life, still attend meetings, although we would always welcome more!

ISSN 0265-1734 For non-members, annual subscription rate is £65.00, single copies £27.00 Members receive a complimentary copy as part of membership to the Group Ian Liddell-Grainger MP

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2 3

CCC REPORTS

Chris Stark CEO of the Committee on Climate Change

DECEMBER SPEAKER MEETING

When speaking to the Group, four • could replace natural gas in • A strategy should be developed reports had just been issued and parts of the energy system, for low-carbon heavy goods are summarised below. These give where electrification is not vehicles (HGVs) which a good overview of the thinking feasible or is prohibitively encourages a move away from behind the advice that will be given expensive, for example in fossil fuels and biofuels to zero- to BEIS following the recent IPPC providing heat on colder winter emission solutions by 2050 Report on 1½o on the UK days, industrial heat processes and actions to meet zero carbon. and back-up power generation See the infographic opposite.

• is not a ‘silver bullet’ solution; the Hydrogen in a low-carbon economy report explores some commonly- Public acceptability of hydrogen held misconceptions, highlighting in the home Report issued 22nd November 2018 the need for careful planning Report issued 22nd November 2018 The report by the Committee on The report’s key recommendations are: Climate Change (CCC) assesses the This report for the CCC by Madano potential role of hydrogen in the • Government must commit to and Element Energy assesses UK’s low-carbon economy and finds developing a low-carbon heat the public acceptability of two that hydrogen: strategy within the next three years alternative low-carbon technologies for heating the home: hydrogen • is a credible option to help • Significant volumes of low-carbon heating and heat pumps. decarbonise the UK energy hydrogen should be produced system but its role depends on in a carbon capture and storage These technologies could early Government commitment (CCS) ‘cluster’ by 2030 to help the potentially replace natural gas in and improved support to develop industry grow many UK households as part of the the UK’s industrial capability government’s efforts to decrease • Government must support the carbon emissions in the UK. • can make an important early demonstration of the contribution to long-term everyday uses of hydrogen in The report’s key findings are: decarbonisation if combined with order to establish the practicality greater energy efficiency, cheap of switching from natural gas • carbon emissions reduction is low-carbon power generation, to hydrogen viewed as an important issue, electrified transport and new but there is limited awareness of ‘hybrid’ heat pump systems, • There is low awareness amongst the need to decarbonise which have been successfully the general public of reasons household heating or the trialled in the UK to move away from natural gas implications of switching over to heating to low-carbon alternatives low-carbon heating technologies

4 5 • acceptability of both heating the land’s ability to provide critical Biomass in a low-carbon economy technologies is limited by a lack services including clean water, of perceived tangible consumer healthy soils and timber, and ensure Report issued 15th November 2018 benefit, which has the potential to sufficient food production for an drive scepticism towards the increasing population and space for This report by the Committee on switch over more generally new homes. Climate Change assesses the role of biomass – wood, plants • heating technology preferences Overall, the report finds that and organic waste – in the global are not fixed at this stage, fundamental reform is required strategy to tackle climate change. although heat pumps appear to ensure land becomes a more to be the favoured option in this effective carbon store, whilst early Biomass can play an important research study action is needed to maximise the role in meeting the UK’s long- benefits from changing how land term (2050) emissions targets, • three overarching factors were is used. and moving towards net-zero identified as influencing emissions, but only with stricter preferences for heating The report’s key recommendations governance to ensure sustainable technologies. These factors are: supplies. manifested differently for different • New land use policy should people, meaning that the same promote transformational land The report’s key findings are: factor could lead one person to uses and reward landowners for prefer heat pumps and another to public goods that deliver climate • Managing biomass stocks is an prefer hydrogen, depending on mitigation and adaptation important component of global their overall heating preferences objectives. New policies should climate mitigation strategies and understanding of the two also reflect better the value of technologies. The factors are: the goods and services that • Sustainably harvested biomass land provides can play a significant role in • perceptions of the negative meeting long-term climate installation burden • Support should be provided to targets, provided it is prioritised help land managers transition to for the most valuable end-uses • familiarity with the lived alternative land uses experience of using the The key recommendations of the technologies for heating The key findings from the report report are: are: • perceptions of how well the • The UK should aim to increase technologies would meet • Climate change impacts are the volume of carbon stored in modern heating needs already altering the land’s use, our forests and land while the services provided by • both hydrogen heating and heat the natural environment are • Food and biodegradable waste pumps face significant challenges being degraded must be collected separately to secure public acceptability from other refuse in all areas • Land is a critical natural resource, across the UK but past policies governing Land use: Reducing emissions the use of UK land have been • Rules governing the supply of and preparing for climate change fragmented and incomplete sustainable sources of biomass for energy need to be improved Report issued 15th November 2018 • New land-use policy must promote radically different uses • Biomass must be used in the This report by the Committee on of UK land most effective way. Uses that Climate Change assesses the role enable long-term carbon storage of land use change in meeting • Alternative uses of land can be should be prioritised climate change mitigation and economic for farmers and land adaptation objectives. managers, but Government must The infographic opposite shows the provide help for them to transition key messages from the report. The Government needs to address climate change, which threatens

6 7 HOUSE OF LORDS ANNUAL DINNER 30th October 2018 Hosted by The Lord Redesdale Sponsored by Arup & Cadent Guest of Honour, Claire Perry MP, Lord Redesdale welcomes us Claire Perry takes questions Chris Train, Ian Gardner, Minister of State for Energy and Clean Growth chaired by Ian Liddell-Grainger MP Cadent Arup

Prof Martin Fry, ESTA John Holland, Jennifer Baskill, Mike Davis, ICE Futures Simon Brewster, Vicky Ford, MP Ann Robinson Jeff House, Baxi Lord Oxburgh Cambridge HOK Elaine New, Welcome Chinese Dolphin N2 Simon Virley, KPMG , MP Arjan Geveke, BEIS

Tony Glover, ENA; Paul Needley, Enertek International; Mark Taylor, BEIS Steven Edwards, WWU Claire Perry meets Joanna Whittington, BEIS; Julian Critchlow, BEIS Richard Court, Cadent John Saltmarsh, BEIS Lord Broers Laura Sandys, Challenging Ideas David Duguid, MP; Mary Stark, Ofgem Angela Hepworth, EdF Janet Wood, New Power

8 9 Most adaptation needs will be lower for global warming ambitions would not limit global warming to 1.5°C, The Intergovernmental Panel on Climate Change (IPCC) of 1.5°C compared to 2°C (high confidence). There are even if supplemented by very challenging increases in a wide range of adaptation options that can reduce the the scale and ambition of emissions reductions after - the United Nations body for assessing the science related risks of climate change (high confidence). There are 2030 (high confidence). Avoiding overshoot and reliance to climate change. limits to adaptation and adaptive capacity for some on future large-scale deployment of carbon dioxide human and natural systems at global warming of removal (CDR) can only be achieved if global CO² 1.5°C, with associated losses (medium confidence). The emissions start to decline well before 2030 number and availability of adaptation options vary by (high confidence). sector (medium confidence). The avoided climate change impacts on sustainable IPCC SPECIAL REPORT development, eradication of poverty and reducing Emission Pathways and System Transitions inequalities would be greater if global warming were º Consistent with 1.5°C Global Warming limited to 1.5°C rather than 2°C, if mitigation and Global Warming of 1.5 C adaptation synergies are maximized while trade-offs In model pathways with no or limited overshoot of are minimized (high confidence). 1.5°C, global net anthropogenic CO² emissions decline by about 45% from 2010 levels by 2030 (40–60% Adaptation options specific to national contexts, if An IPCC special report on the impacts of global Projected Climate Change, Potential Impacts interquartile range), reaching net zero around 2050 carefully selected together with enabling conditions, warming of 1.5°C above pre-industrial levels and and Associated Risks (2045–2055 interquartile range). For limiting global will have benefits for sustainable development and related global greenhouse gas emission pathways, warming to below 2°C11 CO² emissions are projected poverty reduction with global warming of 1.5°C, in the context of strengthening the global response Climate models project robust7 differences in regional to decline by about 25% by 2030 in most pathways although trade-offs are possible (high confidence). to the threat of climate change, sustainable climate characteristics between present-day and global (10–30% interquartile range) and reach net zero development, and efforts to eradicate poverty. warming of 1.5°C and between 1.5°C and 2°C. These around 2070 (2065–2080 interquartile range). Non-CO² Mitigation options consistent with 1.5°C pathways differences include increases in: mean temperature in emissions in pathways that limit global warming to are associated with multiple synergies and tradeoffs This Report responds to the invitation for IPCC to most land and ocean regions (high confidence), hot 1.5°C show deep reductions that are similar to those in across the Sustainable Development Goals (SDGs). provide a Special Report in 2018 on the impacts of extremes in most inhabited regions (high confidence), pathways limiting warming to 2°C (high confidence). While the total number of possible synergies exceeds global warming of 1.5°C above pre-industrial levels heavy precipitation in several regions (medium confidence), the number of trade-offs, their net effect will depend and related global greenhouse gas emission pathways, and the probability of drought and precipitation deficits in Pathways limiting global warming to 1.5°C with no on the pace and magnitude of changes, the composition contained in the Decision of the 21st Conference of some regions (medium confidence). or limited overshoot would require rapid and far- of the mitigation portfolio and the management of the Parties of the United Nations Framework Convention reaching transitions in energy, land, urban and transition (high confidence). on Climate Change to adopt the Paris Agreement. By 2100, global mean sea level rise is projected to be infrastructure (including transport and buildings), and around 0.1 metre lower with global warming of 1.5°C industrial systems (high confidence). These systems Limiting the risks from global warming of 1.5°C in the In this heavily abridged note, we present some of compared to 2°C (medium confidence). Sea level will transitions are unprecedented in terms of scale, but context of sustainable development and poverty the key findings of the Special Report. The level of continue to rise well beyond 2100 (high confidence), not necessarily in terms of speed, and imply deep eradication implies system transitions that can be enabled confidence associated with each key finding is reported and the magnitude and rate of this rise depend on emissions reductions in all sectors, a wide portfolio by an increase of adaptation and mitigation investments, using the IPCC calibrated language. future emission pathways. A slower rate of sea level of mitigation options and a significant upscaling of policy instruments, the acceleration of technological rise enables greater opportunities for adaptation in the investments in those options (medium confidence). innovation and behaviour changes (high confidence). human and ecological systems of small islands, low- Understanding Global Warming of 1.5°C lying coastal areas and deltas (medium confidence). All pathways that limit global warming to 1.5°C with Sustainable development supports, and often enables, limited or no overshoot project the use of carbon the fundamental societal and systems transitions and Human activities are estimated to have caused On land, impacts on biodiversity and ecosystems, dioxide removal (CDR) on the order of 100–1000 transformations that help limit global warming to st approximately 1.0°C of global warming5 above pre- including species loss and extinction, are projected GtCO² over the 21 century. CDR would be used to 1.5°C. Such changes facilitate the pursuit of climate- industrial levels, with a likely range of 0.8°C to 1.2°C. to be lower at 1.5°C of global warming compared to compensate for residual emissions and, in most resilient development pathways that achieve ambitious Global warming is likely to reach 1.5°C between 2030 2°C. Limiting global warming to 1.5°C compared to cases, achieve net negative emissions to return global mitigation and adaptation in conjunction with poverty and 2052 if it continues to increase at the current rate 2°C is projected to lower the impacts on terrestrial, warming to 1.5°C following a peak (high confidence). eradication and efforts to reduce inequalities (high confidence). freshwater and coastal ecosystems and to retain more CDR deployment of several hundreds of GtCO² is (high confidence). of their services to humans (high confidence). subject to multiple feasibility and sustainability Warming from anthropogenic emissions from the constraints (high confidence). Significant near-term Strengthening the capacities for climate action of pre-industrial period to the present will persist for Limiting global warming to 1.5°C compared to 2°C is emissions reductions and measures to lower energy national and sub-national authorities, civil society, centuries to millennia and will continue to cause projected to reduce increases in ocean temperature and land demand can limit CDR deployment to a few the private sector, indigenous peoples and local further long-term changes in the climate system, as well as associated increases in ocean acidity and hundred GtCO² without reliance on bioenergy with communities can support the implementation of such as sea level rise, with associated impacts (high decreases in ocean oxygen levels (high confidence). carbon capture and storage (BECCS) (high confidence). ambitious actions implied by limiting global warming to confidence), but these emissions alone are unlikely to Consequently, limiting global warming to 1.5°C is 1.5°C (high confidence). International cooperation can cause global warming of 1.5°C (medium confidence). projected to reduce risks to marine biodiversity, provide an enabling environment for this to be achieved fisheries, and ecosystems, and their functions and Strengthening the Global Response in the in all countries and for all people, in the context of Climate-related risks for natural and human systems services to humans, as illustrated by recent changes to Context of Sustainable Development and Efforts sustainable development. International cooperation is a are higher for global warming of 1.5°C than at present, Arctic sea ice and warm-water coral reef ecosystems to Eradicate Poverty critical enabler for developing countries and vulnerable but lower than at 2°C (high confidence). These risks (high confidence). regions (high confidence). depend on the magnitude and rate of warming, Estimates of the global emissions outcome of current geographic location, levels of development and Climate-related risks to health, livelihoods, food nationally stated mitigation ambitions as submitted vulnerability, and on the choices and implementation of security, water supply, human security, and economic under the Paris Agreement would lead to global adaptation and mitigation options (high confidence). growth are projected to increase with global warming greenhouse gas emissions18 in 2030 of 52–58 GtCO²eq of 1.5°C and increase further with 2°C. yr−1 (medium confidence). Pathways reflecting these

10 11 necessarily met with sufficient wind or tidal power and conversely the energy potential of a late evening or Energy Focus Sponsored Article night time breeze is of little use unless it can be stored. Addressing the storage of this power is a key enabler in reducing dependency on fossil fuels and reducing emissions. Whilst 99% (1) of the global electricity storage uses pumped hydro electric storage, increasing capacity with this system is not an option for most countries as it requires large dams, that have a significant impact on the local area. Storing energy by creating E-fuels is a system that is gaining popularity. Liquid fuels can be produced with ‘wrong time’ energy that can be utilised at a AN OVERVIEW later time. Compressed or liquid air (2) and liquid nitrogen are two of the zero impact Energy vectors that can be used in this way.

Energy Focus Sponsored Article It is tempting to see any internal combustion engine as a “transition technology”. However, combustible OF CRYOPOWER fuels remain by far the most energy-dense in comparison to batteries or fuel cells / hydrogen; they can be An overview of CryoPower manufactured sustainably from bio-mass or synthesised. The CryoPower system has been demonstrated on diesel By Simon Brewster, CEO, Dolphin N2. and natural gas, and it is compatible with naphthas, ethanol, hythane and hydrogen. The liquid nitrogen is already sustainable, as air-separation is a major player in electricity “demand-side management”; as use of renewables By Simon Brewster,Power generation CEO, and heavy Dolphin-duty trucks provide N2. the means of production and distribution that is rise, it has been shown to be an attractive way of balancing the grid. the lifeblood of the modern industrial economy. Air pollutants have been significantly abated with aftertreatment in both Currently non-renewable power generation uses a largely centralised generation model. Large power stations are cases and incremental Power generation and heavy-duty trucks provide 2017 UK emissions (MtCO2e) used because the scale means that they are more efficient and because the exhaust is easier to treat when coming efficiency improvements Cars and Vans the means of production and distributionhave reduced thethat fuel is 19% from one source. The negative side to this model is that the distribution infrastructure is expensive to build and the lifeblood of the modern industrial economy. Buses maintain and the energy lost in this transmission can be between 7 and 12% (3). CryoPower combines improved consumption. Batteries 1% Air pollutants have been significantly abated with thermal efficiency and emissions compared to large power stations and maintains these benefits down to a small have made an impact in Other transport aftertreatment in both cases andimproving incremental short term efficiency 3% scale high speed engines in the 500 kW to 3 MW range. The effect is that small scale power generation becomes electricity storage for the 2017 UK advantageous, not just in the conventional ‘off grid island’ situation but also for urban and inner-city sites offering improvements have reduced the fuel consumption. HGVs emissions total grid and as the energy 4% a step-change boost in efficiency, and a highly efficient model for heat and power Batteries have made an impact in improving short 456 (MtCO2e) term electricity storage for thestore grid for and light as-duty the energy Other sectors CCC exec 58% summary 2018 store for light-duty vehicles butvehicles the manufacture but the and Power(Gas)Generation manufacture and 10% charging of batteries only delivers reduced emissions Low temperature fuel oxidationthe technology:in place ThermoPower of combustion is a simplified system offering most of the air quality benefits and charging of batteries only efficiency advantage versus to the level of the electricity generation used. Other generation Power (Coal& Oil) delivers reduced 1% advanced diesel engines in Generation CryoPower uses relatively low-cost componentsadvanced anddiesel engines in emissions to the level of 4% manufacturing processes typically used inresearch; current CryoPower engines, the electricity generation yet aims to compete with zero-emission drivetrains.delivers ultimate There efficiency CryoPower has the potential to radicallyused. change the emissions of both power generation and HGV, addressing 18% and air quality by addition of are in fact two versions of the technology:and ThermoPower air quality by addition is of of the total carbon inventory. Adoption in rail and buses could see this being increased to 20% share of the emissions liquid nitrogen or air to its CryoPower has the potential to radically change the emissions of both power generation and HGV, a simplified system offering most of the air quality benefits or 91.2Mt CO2e. Under a projected take-up scenario, the deployment of CryoPower technology will lead to annual internal processes. addressing 18% of the total carbon inventory. Adoption in rail and buses could see this being savings of 12,507 tonnes of NOx, 229 tonnes of PM and 1.18 Mt CO2e by 2032. and efficiency advantage versus advanced diesel engines in increased to 20% share of the emissions or 91.2Mt CO2 e. Under a projected take-up scenario, the research; CryoPower delivers ultimate efficiencyCryoPower andand air quality deployment of CryoPower technology will lead to annual savings of 12,507 tonnes of NOx, 229 ThermoPower are Cumulatively by 2032 almost 80,000 tonnes of NOx; over 1,400 tonnes of particulate matter and almost 5.7 million by addition of liquid nitrogen or air to its internalThermoPower processes. are tonnes of PM and 1.18 Mt CO2e by 2032. Recuperated Split Cycle tonnes of CO2 may be saved through the introduction of the technology. Almost £661 million in economic damage costs Engines. The revolutionary Cumulatively by 2032 almost 80,000 tonnes of NOx; over 1,400 tonnes of particulate matter and CryoPower and ThermoPower are RecuperatedEngines. The Split revolutionary Cycle could be avoided in 2032 and cumulatively over £3.6 billion could be saved between 2022 and 2032. step is to separate the "cold" almost 5.7 million tonnes of CO2 may be saved through the introduction of the technology. Almost Engines. The revolutionary step is to separate the “cold” and "hot" parts of the £661 million in economic damage costs could be avoided in 2032 and cumulatively over £3.6 billion and “hot” parts of the traditional internal combustion traditional internal combustion engine so that each can be separately insulated. The cold could be saved between 2022 and 2032. engine so that each can be separately insulated. The cold compression cylinder delivers air to the hot combustion Environmentally friendly options and how they scale compression cylinder delivers air to the hot combustion cylinder via a heat exchanger or " recuperator cylinder via a heat exchanger or “ recuperator" that transfers “ that energy transfers from the energyhot cylinder from exhaust the, considered hot cylinder waste exhaust, in a conventional considered engine, to Whilst technological solutions suchEnvironmentally as battery-electric friendly and optionshybrid powertrains and how they have scale helped decarbonize the waste in a conventional engine, to the intakethe intake air. air. The The combustioncombustion process process was describ wased described in a paper delivered in a paper to leading delivered international to (4) academics (4) as a lower temperature oxidation process akin to that in a fuel cell rather than a passenger car and light-duty commercialWhilst technological vehicle solutions fleets, such the as batteryreduction-electric of and CO2 hybrid from powertrains heavy freight have helped applications is leading international academics as aacademics lower temperature (4) as a lower temperature oxidation oxidation process process akin to that in a fuel cell rather than a combustion process that occurs at higher temperatures. a far harder task. The limitationsdecarbonize of batteries the passenger become car evident and light -asduty they commercial are scaled vehicle up. fleets, A batterythe reduction powered of CO2 from HGV has akin to that in a fuel cell rather than a combustioncombustion process process that occurs that at occurs higher temperature at highers. heavy freight applications is a far harder task. The limitations of batteries become evident as they The result is that the negative by-products of combustion - some significant challenges to overcome. temperatures. The result is that the negative by-products of combustion - are scaled up. A battery powered HGV has some significant challenges to overcome. nitrogen oxides and particulates - are avoidednitrogen oxides at source and particulates meaning - are that avoided this at system source meaning that this system can achieve at least the most can achieve at least the most stringentmeaning SULEV that emission this system standard can achieve and at least potentially the most The estimated battery mass requiredThe estimated for an batteryHGV with mass arequired conservative for an HGV 300 with mile a conservative range is 300 in themile regionrange is inof the 8.6 region Tonnes stringent SULEV emission standard and potentially lower lower using known “SCR” (Urea-based)stringent after-treatment. SULEV emission standard and potentially lower meaning a potential 28-30% reductionof 8.6 Tonnes in payload meaning and a potential vehicle 28 -utility.30% reduction The charging in payload andtime vehicle can utility.be reduced The charging by several time using known "SCR" (Urea-based) after-treatment. hours by using high powered chargerscan be reduced but charging by several efficiencyhours by using and high poweredbattery lifechargers at these but charging higher efficiency rates is and significanlty battery impaired and the demand on thelife local at these grid higher infrastructure rates is significanlty is beyond impaired current and the capabilities. demand on the local grid infrastructure is Split-cycle engines are known technology,Split- cycleand enginesrecuperation are known is technology, commonplace and recuperation beyond current capabilities. in industrial gas turbines. It is the specificis commonplace combination in industrial of these, gas turbines. plus liquid It is the specific combination of these, plus liquid nitrogen, that is innovative. Batteries have been sucessfully adopted on a local and domestic level to support the grid with frequency nitrogen, that is innovative. Ricardo’s workcombination on recuperated of these, plus liquidsplit nitrogen, cycle engines that is innovative. Ricardo's work on recuperated split cycle engines started in monitoring and to reduce TRIAD obligation. For power as in transport, the battery is less favourable as it is scaled started in 1992 in a project with the UK energy utility National Power, leading to two demonstrator units. The results of 1992the firstin a project running with the CryoPower UK energy utility engine National are Power, up with limited capacity and short discharge rates measured in hours rather than days. leading to two demonstrator units. The results of the first confirming the simulation and theory. leading to two demonstrator units. The results of the first running CryoPower engine are confirming the simulation and theory. The business case for the technology is based on much lower CapEx than low emission alternatives, and a rapid Alternative energy vectors payback versus conventional (usually diesel)The business technology. case for the On-cost technology for is basedthe ThermoPower on much lower CapEx engine than is low estimated emission alternatives, at The contribution of renewable energy sources to the grid plays a significant part to reduce the use of fossil fuels around +20% vs conventional Diesel, withand a rapidfuel savingpayback ofversus 10% conventional giving payback (usually diesel)in a year technology. or less; On- costfor forCryoPower, the ThermoPower engine is estimated at around +20% vs conventional Diesel, with a fuel saving of 10% giving payback but it introduces further instability in the supply side of a system that already has a volatile demand profile (which capital cost is estimated at around 50%engine of the is estimatedcost of aat commercial around +20% vs Diesel conventional engine; Diesel, fuel with cost a fuel savings saving of 10%of up giving to 20%payback in a year or less; for CryoPower, capital cost is estimated at around 50% of the cost of a commercial is further exacerbated by domestic plug-in EV). per year will again give a rapid payback on the extra cost. Diesel engine; fuel cost savings of up to 20% per year will again give a rapid payback on the extra cost. In Europe of the 450GW installed wind power predicted by 2035 only 22.5 GW (5%) is available as a pool resource (1) SBC Energy Institute Analysis based on 50Hertz data archive (Wind and Solar Actual In Feed 2012, Control Load 2012) that can be relied on (1).This problem is described as “wrong time” energy; the morning peak in demand is not (2) https://www.viridor.co.uk/our-operations/energy/new-technologies/energy-storage/(1) SBC Energy Institute Analysis based on 50Hertz data archive (Wind and Solar Actual In Feed (3) Time to Take a Fresh Look at CHP..., Simon Minett, director, DELTA Energy and Environment, October 2005 2012, Control Load 2012) (4) THIESEL 2018 Conference on Thermo- and Fluid (2)Dynamic https://www.viridor.co.uk/our Processes in Direct Injection-operations/energy/new Engines “Towards- technologies/energyzero -storage/ 12 emission engines through the adoption of combustion(2) https://www.viridor.co.uk/our lead engine design realised- operations/energy/newusing a split cycle topology-technologies/energy -storage/ 13 (3) Time to Take a Fresh Look at CHP..., Simon Minett, director, DELTA Energy and Environment, “ R. Morgan, F. Khalid, A. Atkins S. Harvey, Firmansyah,(3) Time D. to Mason, Take aK. Fresh Vogiatzaki Look andat CHP..., M Heikal Simon Minett, director, DELTA Energy and Environment, October 2005 (4) THIESEL 2018 Conference on Thermo- and Fluid Dynamic Processes in Direct Injection Engines “Towards zero emission engines through the adoption of combustion lead engine design realised OBITUARY CAPACITY MARKET SUSPENDED Roger Bootle-Wilbraham, FOLLOWING ECJ RULING 7th Baron Skelmersdale The Rt Hon. the Lord Skelmersdale, Judgment in Case T-793/14 born April 2 1945, died October 31 2018 Tempus Energy Ltd and Tempus Energy Technology Ltd v Commission

Lord Skelmersdale, long serving member of the PGES The European Court of Justice has annulled the decision of the European Commission to grant state aid Executive Council and former government minister, died authorisation for the UK’s capacity market scheme, stating that the Commission should have had doubts suddenly aged 73. This was just after our Annual House in respect of certain aspects of the planned aid scheme and should have initiated a formal investigation of Lords Dinner and the first event that he had failed to procedure in order better to assess its compatibility. attend without notice.

He was one of most supportive members from the upper On 23 July 2014, the Commission decided not to raise objections to the aid scheme establishing a capacity house and was active within the Group, regularly attending market in the UK, on the ground that that scheme was compatible with the EU rules on State aid. The ECJ meetings and events. He hosted and chaired the first ever has found that the Commission had granted approval after only a one month long preliminary examination PGES Policy Forum to decide on energy policy priorities and had failed to take full account of objections raised. The Court found that the Commission should have following the Brexit Referendum and hosted our House of concluded that there were doubts, which should have led it to initiate the formal investigation procedure, Lords Annual Dinner in December 2016. in order to allow interested parties to submit their observations and to put at its disposal the relevant A keen bridge player, he was also a member of the All- information in order better to assess the compatibility of the planned capacity market. Party Parliamentary Bridge Group and captained the Lords’ bridge team for several years. He was helpful with aspects The Commission must now undertake a full investigation of the scheme before granting state aid approval. It of junior bridge, visited a number of schools and was always may emerge that changes to the scheme are required, or that the scheme can remain unchanged. The ruling present when pupils visited Parliament. He was due to came from a challenge brought by clean technology company Tempus Energy. Tempus claimed that the play in the annual Lords v Commons bridge match the day before he died. scheme unfairly favoured fossil fuel generators over Demand-Side-Response and battery storage projects.

In 1999, after the hereditary peers lost their automatic right The ECJ ruled that the European Commission had been wrong to authorise the scheme without properly Lord Skelmersdale at one of the to sit in the House of Lords, he was “thrilled” to come fifth investigating technological neutrality. The judgment suspends state aid approval for the scheme. It therefore on the ballot for the group of 92 hereditaries allowed to many PGES functions he attended. imposes a ‘standstill period’ in which the granting of aid through the scheme will not be lawful. During this stay on pending completion of House of Lords reform, for time the government cannot hold capacity auctions, make any capacity payments or take any other action which the more than 200 hopefuls had to submit personal He was an active member of PGES that could be perceived as granting state aid. manifestos of not more than 75 words. “I am sure my CV and served on Executive Council was by far the most boring,” Skelmersdale said, “but I very much enjoy my work here.” for many years. The Department for Business, Energy & Industrial Strategy has released a statement advising that it is already working closely with the Commission and is doing everything to re-obtain state aid approval as soon Lord Skelmersdale served in junior ministerial posts under as possible. It is unclear when the standstill period will end. In the meantime, activities that do not involve in the departments of the Environment granting aid - such as completing the Prequalification process for 2019, will continue. and Health and Social Security and in the Office and was Deputy Speaker in the House of Lords twice. He was a horticulturalist by trade, a keen bridge player National Grid has issued advice for affected capacity agreement holders and capacity market applicants. and a longstanding president of the British Naturalists’ Further guidance from BEIS and National Grid on the implications is expected. Association. Quietly spoken, Skelmersdale seldom made headlines, but could be relied upon for loyal service answering questions in the House of Lords and serving on committees.

Keen to encourage, taking time to offer help and assistance, Lord Skelmersdale was much respected figure in energy.

He will be sorely missed by the Group.

14 15 more widely. This will require support for high growth Evidence was given on 31st October by Duncan Burt, PARLIAMENTARY RECORD scale-ups at the dynamic end of the economy but also for Director of Operations, National Grid; Oliver Rix, Partner those at the less productive tail end, and in between. All (Energy and Resources), Baringa; Dr Laura Cohen, Gas types of SME can benefit from increasing their productivity Security Group and CEO, British Ceramic Confederation; SELECT COMMITTEE STATEMENTS, and the Government needs to make this case more Roddy Monroe, Chair, Gas Storage Operators Group; and strongly to small businesses. by Dan Monzani, Director for Energy Security, Networks REPORTS AND INQUIRIES and Markets, Department for Business, Energy and There is a wide range of support for SMEs to help them Industrial Strategy; Dave Buttery: Deputy Director for st st 1 September 2018 - 21 December 2018 become more productive and scale-up, ranging from Energy Security, Department for Business, Energy and improving management skills and digital capacity to Industrial Strategy House of Commons helping SMEs innovate and export. However, to be taken Business, Energy and Industrial Strategy Committee up and effective this support needs to be better tailored Energy Efficiency. to the different needs of our varied small businesses and Inquiry launched on 19th November.

Carbon Capture, Usage and Storage (CCUS). it fits in with the Government’s Industrial Strategy and their capacity to take advantage of it. SMEs are more likely Inquiry announced 29th May 2018 emphasis on regional growth. to do this when they can access support locally, digitally This inquiry is open and accepting written submissions. and through support networks which can endorse what The deadline for submissions is 17th January 2019. This inquiry remains open and examines the Government’s works. This makes LEPs, Growth Hubs and local networks commitment to deploying CCUS technology and whether No further action has been taken since Summer recess. crucial and it is important that they are properly resourced This inquiry will examine whether the Government’s it has a “Plan B” to meet the UK’s climate change targets and periodically assessed for their effectiveness. current delivery of energy efficiency improvements within should desired cost reductions not materialise. Swansea Bay Tidal Lagoon inquiry. Inquiry announced 9th May 2018. residential, commercial and public-sector buildings While SMEs need support and help accessing support is consistent with meeting targets set out in the Clean Carbon capture, usage and storage (CCUS) is a set of The Committee will not be calling for written evidence. they also need a level playing field on which they can Growth Strategy, and our fourth and fifth carbon budgets. technologies which can together capture carbon dioxide The BEIS Committee and the Welsh Affairs Committee compete. This means that our small businesses need from waste gases, and either ‘lock up’ this carbon dioxide will be looking at the Swansea Bay Tidal Lagoon and to be paid on time and on fair terms. For too long, SMEs This inquiry is also likely to focus on action to upgrade in long-term storage or use it in industrial processes. investigating delays and obstacles in the decision-making have been treated disgracefully by many larger companies the energy efficiency of fuel-poor homes and the process. Oral evidence only was considered on 25 June. who have deliberately paid late, as part of their business Government’s work to drive demand for energy efficiency Ahead of the first evidence session, the Business, Energy model based on taking advantage of their supply chains. measures within able to pay households. and Industrial Strategy Committee has published 51 No further action has been taken since the Sumer Recess. Poor payment practices need to be addressed as part written evidence submissions for its inquiry on carbon of a wider effort to improve corporate behaviour and capture, usage and storage (CCUS), received from business because they will help avoid more big business collapses Science and Technology Committee organisations, local authorities, academics and others. Small businesses and productivity inquiry. with the devastating impact they visit upon SMEs and Inquiry announced 31st January 2018 other stakeholders. They also need to be addressed so Technologies for meeting Clean Growth emissions Evidence was given on 6 November by Luke Warren, as not to undermine the Government’s efforts to support reduction targets inquiry. CEO, Carbon Capture and Storage Association; Professor The first evidence session was on 19 June. Further improvements in SME productivity. Better management, Inquiry launched on 23rd October Stuart Haszeldine, Director, Scottish Carbon Capture evidence was given on 9 October by Paul Antino, digital capacity, innovation and exporting capability are all and Storage; Kristofer Hetland, Senior Adviser, Project Managing Director, NRT Building Services Group Ltd; Tim instrumental in improving SME productivity. Without fair The Science and Technology Committee is undertaking an Management, Equinor and Nick Sturgeon, Energy and Hopkinson, Director, Poppleton; Tony Davis, Managing and prompt payment to provide financial stability, the UK’s inquiry into the technologies needed to meet Clean Growth Competitiveness Director, Chemicals Industry Association Director, AMD Electrical; Martin Burton, Contracts SMEs will not be able to pursue growth. emissions reduction targets. The Committee is still Director, Arnold James Ltd; then by MP, excepting written submissions. Further evidence given on 21 November by Claire Perry Parliamentary Under-Secretary of State, Minister for Electric vehicles: developing the market MP, Minister of State for Climate Change and Industry, Small Business, Consumers and Corporate Responsibility; and infrastructure inquiry. Inquiry status: open - accepting written submissions Department for Business, Energy and Industrial Strategy, Rannia Leontaridi, Director, Business Growth, Department Inquiry launched on 17th September 2017. Ashley Ibbett, Director for Clean Electricity, Department for Business, Energy and Industrial Strategy. for Business, Energy and Industrial Strategy, Tim Lord, Report published. Awaiting Government Response. House of Lords Director for Clean Growth, Department for Business, The Fifteenth Report of Session 2017–19, Energy and Industrial Strategy Small businesses and productivity Gas Storage. EU Energy and Environment Sub- was published on 5th December 2018. Inquiry launched on 17th October Committee Draft National Policy Statement for Geological Disposal Infrastructure inquiry. Inquiry announced 25th May 2018. Conclusions: The BEIS Committee will be examining issues around UK The Office of Nuclear Regulation’s Brexit preparedness The inquiry examines draft guidance on the determination gas security and gas storage, the Government’s approach SMEs are crucial to the economic success of the UK and to of nuclear waste disposal planning applications. The to diversity of supply, and what action the Government is Since the Summer Recess, Oral evidence is concluded. delivering the Government’s Industrial Strategy, improving inquiry will also examine the scope of the guidance for taking to ensure the supply system is robust and secure. Ministerial correspondence on-going. productivity, rebalancing the UK economy and delivering those considering applications and the framework for Oral evidence sessions announced. granting development consents. It will also consider how on the Prime Minister’s promise to spread prosperity

16 17 PARLIAMENTARY RECORD PARLIAMENTARY RECORD ORAL QUESTIONS 25th July 2018 – 14th December 2018 LEGISLATION 1st September 2018 – 21st December 2018 HOUSE OF COMMONS

Green car challenge Renewable Energy Energy Questions – 20th November 2018 Domestic Gas and Electricity (Tariff Cap) Act Domestic Properties Mr Philip Dunne (Ludlow) (Con) ( West) (Lab) A Bill to make provision for the imposition of a cap on (Minimum Energy Performance) Bill 10th September Column 453 Column 487 Solar Generation rates charged to domestic customers for the supply of A Bill to require the Secretary of State to ensure Kevin Hollinrake (Thirsk and Malton) (Con) gas and electricity; and for connected purposes. Green Finance Solar Industry Daniel Kawczynski that domestic properties have a minimum energy (Taunton Deane) (Con) Jeff Smith (Manchester, Withington) (Lab) (Shrewsbury and Atcham) (Con) performance rating of C on an Energy Performance Mr Philip Dunne (Ludlow) (Con) Column 487 Richard Graham (Gloucester) (Con) The Bill was introduced to the House of Commons by Certificate; and for connected purposes. Douglas Chapman David Hanson (Delyn) (Lab) the Government and given its First Reading on Monday (Dunfermline and West Fife) (SNP) Climate Change Mr Philip Hollobone (Kettering) (Con) 26 February 2018 and Second Reading on Tuesday 6 th This Bill is a Private Member’s Bill sponsored by Sir 11 September Column 596 Barry Gardiner (Brent North) (Lab) Sir Edward Davey (Kingston and Surbiton) (LD) March 2018. Committee debates were held on 13 and David Amess MP (Southend), introduced on Tuesday 6 Column 487 Carol Monaghan (Glasgow North West) (SNP) 15 March. Third Reading was 4 July, no amendments Investment in Renewable Energy February 2018 under the . This Bill was Dr Alan Whitehead (Southampton, Test) (Lab) were made at third reading. Following “Ping Pong” on Paul Blomfield (Sheffield Central) (Lab) Greenhouse Gas Emissions Column 701 – 704 expected to have its second reading debate on Friday 12th September Column 749 Daniel Zeichner (Cambridge) (Lab) 18 July, the Bill received Royal Assent on 19 July before 16 March 2018. However, it was objected to and second Column 493 Nuclear Power the House rose. reading was then scheduled to take place on Friday 15 Fracking (Copeland) (Con) June 2018. No date has been set for second reading. Justin Madders R & D Funding for Geothermal Energy (Plymouth, Sutton and Private Member’s Bills (Ellesmere Port and Neston) (Lab) Chris Elmore (Ogmore) (Lab) Devonport) (Lab/Co-op) th Electric Vehicles 12 September Column 750 Column 495 John Stevenson (Carlisle) (Con) Carbon Emission Reductions Bill Meg Hillier (Hackney South and (Standardised Recharging) Bill 2017-19 Funding of Fossil Fuel Use Nuclear Power A Bill to amend the target for reducing net carbon Shoreditch) (Lab/Co-op) A Bill to make provision about standardised Chris Law (Dundee West) (SNP) Trudy Harrison (Copeland) (Con) Column 704 - 705 emissions in the UK to 100% by 2050. 10th October Column 124 Mrs Anne-Marie Trevelyan requirements for electric vehicle charge points; and for connected purposes. (Berwick-upon-Tweed) (Con) Nuclear Power Stations This Bill is a Private Member’s Bill sponsored by Battery technology Chris Williamson (Derby North) (Lab) Alan Brown (Kilmarnock and Loudoun) (SNP) Baroness Featherstone, first reading took place on Mark Pawsey (Rugby) (Con) Column 496 Column 713 - 714 This Bill is a Private Member’s Bill sponsored by th 18 July, its second reading is yet to be scheduled. 11 October Column 262 Bill Wiggin MP (North Herefordshire), introduced to Topical Questions Hydraulic Fracturing Parliament on 20 November 2018 under the Ten Minute Low-Carbon Transition in Scotland Colin Clark (Gordon) (Con) Clean Air Bill Mr Jim Cunningham (Coventry South) (Lab) Rule and expected to have its second reading on Friday Alan Brown (Kilmarnock and Loudoun) (SNP) (Sheffield, Heeley) (Lab) Sir (New Forest West) (Con) A Bill to require the Secretary of State to set, measure, 11th October Column 262 David Duguid (Banff and Buchan) (Con) 8 March 2019. Barry Gardiner (Brent North) (Lab) enforce and report on air quality targets; to make Column 498 - 501 Column 714 - 715 Climate Change Report provision about mitigating air pollution, including Energy Consumption Andy McDonald (Middlesbrough) (Lab) Fracking within vision of Green Brexit Topical Questions through the use of clean air zones; to make provision (Innovative Technologies) Bill 2017-19 11th October Column 274 (Blaydon) (Lab) Melanie Onn (Great Grimsby) (Lab) about vehicle emissions testing; to restrict the approval 18th October Column 774 (Harrow East) (Con) and sale of vehicles with certain engine types; and for A Bill to require the Secretary of State to undertake E10 Fuel Steve McCabe (Birmingham, Selly Oak) (Lab) connected purposes. a public consultation on innovative technologies and Nic Dakin (Scunthorpe) (Lab) Carbon Tax Andrew Bowie energy consumption in households and commercial th 11 October Column 284 (Stockton North) (Lab) (West Aberdeenshire and Kincardine) (Con) properties and to report on responses to that Mr Gregory Campbell (East Londonderry) (DUP) Column 714 - 721 This Bill is a Private Member’s Bill sponsored by Energy Questions – 16th October 2018 25th October Column 419 Geraint Davies MP (Swansea West), presented to consultation and steps to be taken to encourage the UK Aid Parliament on 22 November 2017 and order for second development of innovative technologies to reduce Internal Energy Market Environmental Protection Dan Carden (Liverpool, Walton) (Lab) reading was read and discharged on Friday 15 June energy consumption; and for connected purposes. James Heappey (Wells) (Con) Karen Lee (Lincoln) (Lab) 21st November Column 850 2018. The Bill is now scheduled to be read a second Column 480 Mr Peter Bone (Wellingborough) (Con) This Bill is a Private Member’s Bill sponsored by th time on Friday 25 January 2019 25 October Column 421 Climate change Rebecca Pow MP (Taunton Deane), introduced to Energy Prices Stephen Gethins (North East Fife) (SNP) Parliament on 12 September 2018 under the Ten John Stevenson (Carlisle) (Con) Budget Speech and Climate Change Domestic Energy (Value Added Tax) Bill Minute Rule and expected to have its second reading on (Redcar) (Lab/Co-op) (Norwich South) (Lab) (Manchester Central) (Lab/Co-op) A Bill to reduce Value Added Tax on domestic energy th th Friday 8 February 2019. Sir Desmond Swayne (New Forest West) (Con) 6 November Column 1365 4 December Column 641 & 645 bills; and for connected purposes. Seema Malhotra (Feltham and Heston) (Lab/Co-op) Renewable Energy Accelerating Renewable Energy Local Electricity Bill 2017-19 Drew Hendry (Inverness, Nairn, Badenoch Seema Malhotra This Bill is a Private Member’s Bill sponsored by Sir Rebecca Pow (Taunton Deane) (Con) A Bill to extend the period for the Secretary of State and Strathspey) (SNP) (Feltham and Heston) (Lab/Co-op) 4th December Column 657 Christopher Chope MP (Christchurch), presented to Column 484 - 486 6th November Column 1368 Parliament on 5 September 2017 and scheduled to have to exercise powers relating to smart metering and to Carbon-neutral Housing its second reading debate on Friday 23 November 2018. provide for a special administration regime for a smart Emissions Renewable Energy Developers Mr (Tewkesbury) (Con) meter communication licensee. Henry Smith (Crawley) (Con) Mr Alistair Carmichael Mr Barry Sheerman Jeff Smith (Manchester, Withington) (Lab) (Orkney and Shetland) (LD) (Huddersfield) (Lab/Co-op) This Bill is a Private Member’s Bill sponsored by Jeremy Thangam Debbonaire (Bristol West) (Lab) 6th November Column 1374 10th December Column 9 Column 486 - 487 Lefroy MP (Stafford), introduced to Parliament on 6 Fuel Poverty September 2018 under the Ten Minute Rule and expected James Heappey (Wells) (Con) to have its second reading on Friday 25 January 2019. 11th December Column 147

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