THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!

1. East of England the energy region Meeting the Big Energy Challenges – the role of all sectors of the region’s energy industry Stuart Thornton Operations Manager 12th January 2010 THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!

2. Who are we… EEEGR is a business led, business driven regional energy industry association. Our vision is simply: “the sustainable production and wise use of energy” Representing over 335 member companies and working across all six counties…

3. Presentation Overview Meeting the big energy challenges – in 15 minutes! Key drivers for the immediate future: • Climate Change and the Low Carbon Economy • The increasing demand for energy from increased economic and social prosperity! Seemingly incompatible or mutually achievable? Part One: The Bigger Energy Picture Part Two: What does this mean for our region? Part Three: The Challenges - Forward Strategy… Part Four: Conclusions…

4. Part One: The Bigger Energy Picture Where are we now? Top tip No. 1 - www.eia.doe.gov

5. PJ Part One: The Bigger Energy Picture Where we need to be? (UK electricity generation, 80% CO2 reduction)

6. Top Tip No. 2 – By the Minute Reports www.bmreports.com

7. Part Two: What does this mean for our region?

8. Part Two: What does this mean for our region? Sub Sea Coal???

9. Our Current Most Significant Resource This map of the Southern North Sea shows Bacton at its heart

10. Potential for Re-use with CCTS • Pipelines in Southern North Sea (SNS) particularly suitable • Some gas fields early candidates for decommissioning • Connected to onshore terminals • Multiple pipelines • Short distances to geological structures • Why would we build ones when we could use the existing ones?

11. The Wind is in the East Scroby Sands Greater Wash East of England poised to become the world’s largest offshore wind market • 18 regional projects due online prior to 2012 • 60 - 1,200 MW developments using 2 - 5 MW turbines • In water depths of 2 - 28 metres • Region’s first operational project • The UK’s 2nd offshore wind farm • 30 x 2 MW turbines • £80m (including initial 5 years O&M) • Commercially complete - Dec 2004 • Formally opened - May 2005 And then there is Round 3… Thames Estuary THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!

12. The Crown Estates Round Three Offshore Wind Allocations 7,200 MW & most commercially viable 3.6 MW Turbines = 2000 in total Loading capacity approximately 33% = total output of 2,376 MW Maintenance interval of about 500 hours or 21 days with minimum two people per crew 9000 MW Dogger Bank 4000 MW Hornsea 7,200 MW Norfolk Images courtesy of Alan O’Neil

13. Onshore Wind? Contrary to popular belief, there is no real issues with the technology… Economically more commercially viable than offshore wind… Globally more publically accepted than offshore wind… Ideally suited to the UK and this region… NIMBY to IMBY…

14. Nuclear … past, present and future • An integral part of the region’s energy mix • Bradwell – closed, currently defuelling • Sizewell A – 420MW • Closed Dec 2006 • Sizewell B – 1,188MW • Operating until 2035 • Sizewell C – 1,600 MW 2018 • B + C = 11% of UK power • Employing over 1200 local people directly • Consultation under way on delivery of New Nuclear Build THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!

15. Sizewell B + C = 2,788 MW Great Yarmouth (CCGT) = 420 MW Peterborough (CCGT) = 405 MW King’s Lynn (CCGT) = 340 MW Thetford, Ely, Eye (Bio) = 90 MW Norfolk, GG, SS, ScS = 2,665 MW TOTAL = 6,708 MW Approximately 14% of total UK power…

16. Part Three: The Challenges - Forward Strategy… A useful way to order our thoughts… EEEGRs five strategic themes: • raise the profile and promote global awareness of regional industry, • strengthening the region’s ability todo business internationally, • encouraging innovation, knowledge transfer and technology acceleration, • stimulating supply chain improvement,and diversification, • developing skilled people for the future of the industry. THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!

17. Industry Promotion – Make the public aware of our natural assets and our contribution to the whole… • International Business – We have World-Class Gas, Offshore Wind and Clean-Tech industries here in the EoE. We need to support and sustain it… • Innovation and New Technology - We have the brains and the ideas, we have business support, we could do with more finances… Most of all we need the political will to make progress happen and fast… Planning for onshore wind is vital… • Supply chain development and improvement – There is no such thing as “A Renewable Supply Chain”… • developing skilled people for the future of the industry – We need locally grown engineers. We need a regional straight forward engineering degree. We need to attract people in to all aspects of the energy industry…

18. PJ Part Four: Conclusions… The Drivers:

19. The Low Carbon Transition Plan… Page 53: The importance of New Nuclear, Offshore Wind, CCS and electric vehicles Page 73: We’re all DOOMED! Page 103: Gas is an important factor in the transition to a Low Carbon UK

20. Some things we can be sure of: Demand for energy is only going to go up… The price of energy is only going to go up… Energy resources are only ever going to get more political… In order to meet our future energy needs, the UK will increasingly look towards this region for both a sustainable and low-carbon solution… If there is one industry that has the ability to pull this region out of the current economic recession and ensure a sustainable future, it’s the energy industry… Sustainable Regional Prosperity through Sustainable Regional Energy… The later we leave the decisions, the lesser part we will play…

21. Contact us: Tel: 01493 446535 Email: st@eeegr.com Web: www.eeegr.com THE VOICE FOR ENERGY IN THE EAST OF ENGLAND!