Liverpool City Region Combined Authority Overview and Scrutiny Committee Energy and Net Zero Carbon portfolio update Cllr Gillian Wood Deputy Portfolio Holder Low Carbon & Renewable Energy
AMBITIOUS, GREEN , FAIR, CONNECTED, TOGETHER
1 in 9 Homes ~£180M Fuel Poverty: High Cost Low Income £540M / year Domestic Fuel Bills Network 13,300 Jobs in energy, utilities and low carbon related businesses Charges ~£100M 400 firms in Energy & Environmental £370M /year Technologies and Services Sector Additional Business Energy Use 17% of local emissions Charges including (Not Energy Intensive Ind. Climate Levy & not transportation) Industries subject to EU ETS 15% of UK renewable energy capacity £950M ~£600M/y (Includes EfW, onshore and offshore wind) In Road Tax Petrol & Diesel 0.5% Small Scale UK Solar Installs Social cost of carbon £36M £180M / y Onshore, we have installed ~60 GWh * Local Authority Energy Spend generation vs. an estimated capacity of 2000 GWh *Sustainable Energy Action Plan
Net Zero Carbon 2040 • The Metro Mayor and Combined Authority has a stated ambition for LCR to be net zero carbon by 2040 • We believe this is difficult but feasible and we have greater options • We can envisage a pathway with today’s available and emerging technology – Electrify and convert to Hydrogen the majority of domestic heating – Electrify transport and shift from car to walking and cycling – Create and use hydrogen as a principle transport and process fuel and methane replacement – Create large-scale storage capacity including batteries and hydrogen – Clean electricity generation from local sources including Tidal, Offshore Wind and solar – Substantial energy efficiency in homes and businesses – Replace methane with hydrogen and carbon capture and storage for our energy intensive industries – Replace diesel HGV’s with highway electrification, hydrogen and during transition, CNG – Introduce ship to shore power and emissions restrictions on marine and aviation turnarounds
LCR Hydrogen
Why is Hydrogen important to Liverpool City Region? - Long History - Assets already in the ground and in production - Expertise in our companies, universities, regulators and government - Ability to scale and mainstream - Offshore Wind as a recent reference point
Two H2 Production facilities with pipeline networks
Home to leading H2 transport solutions
The LCR H2 Project Pipeline
Mersey Tidal
Current status Early work has been carried out to investigate the potential for tidal energy to deliver: • Clean and reliable energy for LCR carbon targets (net zero carbon by 2040) • Energy for transformational sustainable growth (local businesses and citizens) • Economic benefit through jobs, skills, employment prospects, fuel poverty alleviation • Harness the environmental assets of the River Mersey and Liverpool Bay • Social value through place-making and liveable environments • Value for money The work has shown that tidal energy is an opportunity worth investing further in.
Plans for development Development of a robust evidence-based Outline Business Case (OBC) to inform and explore viability and inform decision making - parallels with work to establish benefits of HS2 / Northern Powerhouse Rail to the LCR. The OBC will be developed in line with the Green Book Supplementary Guidance on Delivering Public Value from Spending Proposals ("Treasury Guidance"), following the proposed "Five Case Model“ which includes the: 1. Strategic Case 2. Economic Case 3. Financial Case 4. Commercial Case 5. Management Case.
Lessons we are learning - We need to create new partnerships and create common cause with our businesses and communities - We are all on a steep learning curve and at times leading the world - Leading the decarbonization agenda brings risks and rewards - We need to make zero carbon technologies visible and relevant to our communities – and be able to answer the ‘how will I benefit’ question - We need to deliver mainstreaming and scale rather than pilots
AMBITIOUS, GREEN , FAIR, CONNECTED, TOGETHER
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