The chemical industry welcomes the bold ambitions set out in the Government’s new Energy Security Strategy, which aims to produce clean and affordable energy in the UK and support the country’s longer-term energy independence.
It is good to see a doubling ambition to up to 10GW of low carbon hydrogen production capacity by 2030 for which our industry not only plays a key role in delivering; but is a key transition fuel for our sector’s net zero ambition.
However, we will need to go beyond ambition and forward to action, with a clear plan on how a Government-industry partnership can help deliver cleaner, affordable energy to all consumers, (including industrial), in the UK.
Importantly, in the short term Government action to extend the Energy Intensive Industry Compensation Scheme for a further 3 years is welcome, providing some relief to some businesses. Over the coming weeks and months we urge Government to consider and work with industry on other measures to help level the playing field against our international competitors, who are now benefitting from increased support.
For more information please contact Simon Marsh at [email protected] or 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, the chemical industry is truly the “industry of industries” – also playing a critical role in the nation’s response to Covid-19 through its supply of hand sanitiser, PPE and vaccine ingredients.
- 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 – double that of any other manufacturing industry and triple that of any part of the UK economy.
- Nearly half a million people are employed in the sector or have roles that are dependent on the sector. Chemical workers typically earn 35% more than other manufacturing industries and 54% 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 biggest manufacturing exporter, sending goods to the value of more than £57 billion to other countries. The EU represents our most important market, but we continue to work closely with Government to inform and secure UK trade deals with other key chemical markets such as Japan and the USA.