Shell, a group of energy and petrochemicals companies, will not take David Cameron’s side in attracting private sector investment into the North Sea wind revolution, reported Guardian.
The company said that the current economics of wind power did not pile up. The company’s finance director Simon Henry said that his company was spending USD 6 billion on alternative energy including biofuels. He also warned the government that it must be careful that an immense amount of the public renewable energy subsidies did not end up all going to “Asian manufacturers”.
Henry said that the British government should support a successful industry, such as oil and gas, as much as the renewable power sector that is still trying to become profitable. Shell “can’t make the numbers” add up to justify building offshore wind farms, what contrasts with onshore turbines in the USA where it controls almost 1 GW of wind power.
The prime minister described renewables as the fastest growing energy source on the planet, and that the North Sea area holds the biggest opportunity for the UK. He added that the government and business together could enable the UK to lead the world in both wind power and carbon capture and storage.
Oil companies assigned on North Sea area won tax concessions from the government in March. Shell is looking at the potential for onshore shale gas production in Britain and wider Europe but has doubts that the progress in the sector will be slow.
[mappress]
Offshore WIND staff, May 01, 2012; Image: Shell