CBI Energy Conference 2011 - Tim Morris

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Tim Morris, head of climate change, Tata Steel Europe at the CBI's energy conference. London, June 2011.

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CBI Energy Conference 2011 - Tim Morris

  1. 1. CBI Energy Conference – supporting energy users June 2011 Tim Morris Head of Climate Change Tata Steel Europe [email_address] +44-207-717-4598
  2. 2. CBI Energy Conference – supporting energy users We take energy very, very seriously <ul><li>2 nd largest steel maker in Europe </li></ul><ul><li>20,000 employed directly in the UK, ~100,000 indirectly </li></ul><ul><li>Global leadership positions in supplying steel to the energy sector </li></ul><ul><li>Recycle, reuse and generate energy </li></ul><ul><li>Major energy consumer </li></ul><ul><li>Major innovator in products and processes for a low carbon economy </li></ul><ul><li>High energy & emissions efficiency vs global competitors </li></ul><ul><li>Energy and emissions targets core in vision, monitoring and reporting </li></ul>
  3. 3. CBI Energy Conference – supporting energy users UK industry bearing a significant cost We’re starting behind… … and it looks like it might get worse Scenario for Tata Steel UK-only electricity ‘green costs’ exposure** (Aggregate spend, rebased to 2010) Average UK, German and French wholesale power prices* (£/MWh) Sources: Reuters, Waters Wye study for EIUG / TUC, March 2011 * Average daily year ahead baseload price, February 2003 to date , translated at daily £/€ FX rate ** UK only green costs cover estimated impacts of RO / FITs, CCL including rebate, CCS/EPS, Capacity market costs, CFP impact. Excludes EU ETS impact and additional transport & distribution investment costs 17% 14% 5x
  4. 4. CBI Energy Conference – supporting energy users Where should the policy priorities be? <ul><li>Procurement policies & regulatory standards </li></ul><ul><li>Labelling? </li></ul><ul><li>Supporting UK supply chains – offshoring CO2 doesn’t solve the global problem! </li></ul><ul><li>Balanced, cost effective energy mix </li></ul><ul><li>Alternatives for providing ‘certainty’ e.g. offtake consortium </li></ul><ul><li>Right approach to demand response and market signals </li></ul><ul><li>EII strategy – end of the year? </li></ul><ul><li>Gas storage </li></ul><ul><li>Industrial as well as power sector CCS demonstration and infrastructure </li></ul><ul><li>Human and intellectual capital – skills, education, R&D </li></ul><ul><li>Innovative financing and structuring (GIB?) </li></ul>There is a winning solution for the UK with foundation industries having a crucial role Shaping the demand side landscape Investing in infrastructure Competitive cost of energy

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