UK-US Energy Security and Affordability Partnership Announced.

The Prime Minister of the United Kingdom, Rishi Sunak, and the President of the United States, Joe Biden, announced the “UK-US Energy Security and Affordability Partnership” on December 7, 2022. The objective of this partnership is to work towards stabilizing energy markets and reducing the world’s dependence on Russian energy exports. The two nations aim to increase energy security and drive down energy prices.

A new “UK-US Joint Action Group” will be established to lead this initiative, with senior officials from both the UK government and the White House at the helm. The partnership is a follow-up to the meeting between the Prime Minister and President Biden at the G20 summit in Indonesia where they agreed to address the UK’s short-term energy needs and hasten its energy transition.

To tackle the increase in energy prices caused by the conflict in Ukraine, the partnership will work towards ensuring a steady supply of Liquified Natural Gas (LNG) to UK terminals from the US. The US aims to export at least 9-10 billion cubic meters of LNG over the next year through UK terminals, which is more than double the amount exported in 2021.

The Joint Action Group will also focus on reducing the world’s reliance on Russian energy by promoting energy efficiency, clean hydrogen, and civil nuclear power. The partnership will be based on the work of the existing UK-US Strategic Energy Dialogue and will focus on gas supply, energy efficiency, civil nuclear, and clean energy. The partnership will also drive international investment in clean energy technologies, such as offshore wind and carbon capture.

In addition to securing the energy supply, the group will exchange best practices for increasing energy efficiency and reducing the demand for gas. It is estimated that there could be an 8% decrease in gas demand in the UK this winter, and the Joint Action Group will explore policy solutions to enhance energy efficiency. The initiative will also pursue innovative energy solutions, such as decarbonizing the aerospace industry and developing sustainable aviation fuels.

The statement concluded by saying that the UK and US will continue their close collaboration on Carbon Capture Usage and Storage and further the Clean Hydrogen Mission. The two countries are already co-leads of the Hydrogen Breakthrough Agenda, which is a flagship initiative to promote clean hydrogen globally.