The Chemical Industries Association welcomes the UK Government’s decision to approve the Jackdaw gas field in the North Sea, describing it as a positive step towards strengthening the country’s energy security and supporting the future of energy-intensive manufacturing.
The decision comes at a critical time for the UK chemical industry, which continues to face intense international competition, high energy costs and growing pressure on domestic manufacturing capacity.
Natural gas is an essential feedstock for parts of the chemical industry and a major source of energy for manufacturing processes. A secure, reliable and competitively priced supply of gas is therefore fundamental to maintaining the UK’s industrial capability and reducing vulnerability to international supply disruptions.
Jackdaw, operated by Adura, the Shell and Equinor joint venture, is expected to contribute around 6% of UK North Sea gas production at peak output. Its development represents an opportunity to make greater use of domestic resources while supporting skilled employment and activity across the wider industrial supply chain.
Steve Elliott – Chief Executive of the Chemical Industries Association, said:
“We welcome the Government’s decision on Jackdaw. A resilient UK economy needs a resilient manufacturing base, and that means recognising the essential role that reliable and affordable energy supplies play in keeping British industry competitive. Chemistry is at the heart of modern manufacturing. Our industry supplies the materials and essential chemicals needed by sectors ranging from pharmaceuticals and healthcare to food production, construction, automotive manufacturing and clean energy technologies. Yet UK chemical manufacturers face some of the highest industrial energy costs among competing economies. Without urgent action to address this disadvantage, we risk losing further investment, production capacity and strategically important manufacturing capabilities to overseas competitors. Developing domestic gas resources will not, on its own, solve the UK’s industrial energy cost problem. However, decisions that support the resilience of domestic supply are an important part of a wider, pragmatic approach to energy security. The Government must now match this decision with a comprehensive plan to restore the competitiveness of UK manufacturing — including action on industrial electricity and gas costs, support for energy-intensive industries, and investment in the infrastructure needed for the transition to a lower-carbon economy.”
He stressed that “energy security and decarbonisation must be pursued together. Chemical manufacturers are central to developing and producing the materials required for the transition to net zero, including technologies used in batteries, renewable energy, insulation and hydrogen”.
However, the Association warned that the transition must be managed in a way that enables UK businesses to continue manufacturing competitively at home, rather than increasing reliance on imported chemicals and materials produced elsewhere.
The Association called on the Government to build on the Jackdaw decision by delivering a clear, long-term industrial energy strategy that recognises the strategic importance of chemicals to the UK economy, national resilience and downstream manufacturing.
ENDS
NOTES TO EDITOR
For any further information and/or to speak to Steve please contact Simon Marsh at MarshS@cia.org.uk, 07951 389197.
- Businesses who make chemical products and solutions are integral to something like 96% of all manufactured goods. Whether it is ingredients for food and medicines; paints and coatings for cars and planes or materials for mobile phones and electric vehicle batteries or defence equipment, the chemical industry is truly the “industry of industries”
- The Government’s 2025 industrial strategy said “at the core of Advanced Manufacturing underpinning all domestic manufacturing.”
- Chemical businesses are located throughout the UK, with many of them clustered together in the North East of England, North West of England and Central Scotland. These factories and laboratories, operated by a highly trained and skilled workforce, make a significant contribution towards the UK’s productivity performance.
- Roughly 135 thousand people are employed in the sector and nearly half a million have roles that are dependent on the sector. Chemical workers typically earn around 25% more than other manufacturing industries and almost 40% more than the average worker.
- From Runcorn to the Humber Bank; from Teesside to Grangemouth, chemical businesses and their employees right across the country are essential to the Government’s levelling-up agenda.
- We are the country’s second biggest manufacturing exporters, sending goods to the value of more than £70 billion to other countries. The EU represents our biggest market, but we continue to work closely with Government to inform and secure UK trade deals with other key chemical markets such as India and the USA.
