An Irish power tycoon has revealed plans to construct a brand new fuel storage web site within the Irish Sea that will increase the UK’s capability by over 50 per cent.
Tony O’Reilly Jr’s Dcarbonx, which is backed by fuel infrastructure behemoth Snam, needs to redevelop a former fuel web site off the coast of Barrow-in-Furness as a part of an £830m megaproject that it claims would handle the “mounting nationwide safety danger”.
Spend money on Gold
O’Reilly, who’s the son of the billionaire former Heinz boss of the identical identify, stated the challenge would assist insulate the UK’s grid from the intermittency of renewables and sudden fluctuations in pure fuel costs.
“With out home fuel storage, the UK is uncovered to international fuel market volatility, particularly throughout winter,” he stated. “The query isn’t whether or not we’d like extra storage, it’s whether or not we’re severe about constructing it.”
The announcement precedes an anticipated authorities session on Britain’s ‘fuel system resilience’, which can search to look at the nation’s storage necessities with pure fuel more likely to stay an integral a part of the UK’s power combine.
It supplied 29 per cent of the UK’s power demand in 2024, a slight discount from its latest peak of 38 per cent in 2022.
Metropolis AM understands the proposal will search views on whether or not the federal government ought to assist prop up fuel storage tasks, which are inclined to incur huge repairs prices.
However in keeping with Dcarbonx, Britain can at present solely stockpile 12 days’ value of common winter fuel demand, the bottom fuel storage capability of any G7 economic system regardless of our outsized reliance on the gas. The typical throughout different main European nations is 90 days.
The agency’s proposed North Sea facility, which was run by British Gasoline as a extraction web site earlier than being decommissioned 2018, can be able to storing 1.4bn cubic metres of fuel, roughly sufficient to fulfill an additional six days of common demand, it stated.
O’Reilly added: “The UK doesn’t simply have a market hole – it has a strategic danger.
“Gasoline is now not only a commodity; it’s the key transition gas and an insurance coverage coverage for steady progress.”
Dcarbonx, which specialises in fuel and hydrogen power storage, stated the positioning might be operational inside 5 years, topic to regulatory approval and investor urge for food.
The proposal has additionally teed up a contemporary bout of competitors between O’Reilly’s little-known British-Irish group and British Gasoline-owner Centrica, which operates the Tough storage web site off the North Coastline.
