An “unprecedented fleet” of offshore wind projects will be established in the North Sea to supply energy to several countries under a pact to be signed today.
The Hamburg Declaration, which includes the UK, Germany, Norway, France and Denmark, aims to “escape the fossil fuel roller coaster” and power homes and businesses across the continent, the UK’s Department for Energy Security said.
It will be signed at a summit in the German port city – three years after countries pledged to build 300GW of offshore wind in the North Sea by 2050, in the wake of Russia’s invasion of Ukraine and the “weaponisation” of European energy supplies. North Sea countries will agree to deliver 100GW of that offshore wind power through joint clean energy projects, including wind farms at sea.
The summit comes days after US President Donald Trump criticised the UK for failing to make the most of oil reserves in the North Sea and relying on wind power instead. He claimed UK government policy made it “impossible” for oil companies to operate in the area because they were taxed so highly, while saying that “windmills all over Europe” were “losers”.
Mr Trump told the World Economic Forum in Davos that the North Sea had 500 years of oil and gas reserves left. “The UK produces just one third of the total energy from all sources that it did in 1999," he said. "And they’re sitting on top of the North Sea, one of the greatest reserves anywhere in the world, but they don’t use it, and that’s one reason why their energy has reached catastrophically low levels, with equally high prices."
British Energy Secretary Ed Miliband said in a statement before Monday’s summit that the country was "standing up for our national interest by driving for clean energy, which can get the UK off the fossil fuel roller coaster and give us energy sovereignty and abundance".
“After our record renewables auction, we today go further by signing a clean energy security pact with European allies to ensure we maximise the clean energy potential for the North Sea," he added.
The government expects industry will respond by unveiling new projects to end Europe’s “reliance on volatile fossil fuel markets" controlled by individual states and "dictators”.
An agreement on connecting the offshore grid between Britain, Germany, Belgium, Denmark and the Netherlands is also expected to be signed at the Future of the North Seas Summit. The statement of intent is to focus on speeding up delivery by joint planning, cost sharing and market arrangements.
A framework to deepen German and UK collaboration on subsea energy infrastructure is also to be agreed on. The partnership will “put UK firms at the forefront of grid technology”, the government said.
Deals will also be made between Nato and Europe, particularly on cyber security co-operation in the North Sea.
“The North Sea is a strategic key area for Europe’s energy and supply security," said Katherina Reiche, German Minister of Economic Affairs and Energy. “By planning expansion, grids and industry together and implementing them across borders, we are creating clean and affordable energy, strengthening our industrial base and increasing Europe’s strategic sovereignty.
“Today’s investment pact provides reliable perspectives for the offshore sector, secures creation of value in Europe and brings future-proof jobs.”
The head of trade policy at the British Chambers of Commerce, which represents thousands of UK companies, welcomed the co-operation with European allies. “The commitments set out in the Hamburg Declaration will deliver on that, allowing our businesses to work on joint projects on renewables, interconnectors and other vital energy infrastructure," William Bain said.
“But we must not stop there. Action is also needed to ensure the competitiveness of oil and gas extraction and refining in the UK. This is a vital part of our energy mix in an uncertain world where we face multiple geopolitical and security threats.”
He said the current tax regime remained unsustainable and that the energy profits levy – the windfall tax on oil and gas companies – would have a negative effect on jobs and investment if it was not changed. “The government must move to the recently announced oil and gas price mechanism as soon as possible – 2030 will be too late," Mr Bain said.
Offshore hydrogen exports from the UK, as well as carbon capture and storage, need to be explored too, he said. European partners have focused on those aspects for energy security, he added.
