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is offering qualifying investors an opportunity to invest in a new and revolutionary technology which will produce reliable, low cost electricity from the earth’s natural tidal systems’

 

 

UK Gas Production

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ENVIRONMENT

ENERGY DEMAND - THE CASE FOR SUSTAINABILITY

Current thinking suggests that total energy demand is likely to grow over the next 20 years at a rate of 1.6% per year. Global living standards will improve but to do this more & more energy will have to be made available. The political case for renewable/sustainable energy is already making itself felt. Politicians are beginning to recognise that in order to square the circle of increased energy demand and the need to tackle the problem of climate change they will have to get behind the drive for sustainable sources of energy. Added to this, but no less important, is the harsh truth that traditional sources of oil & gas no longer offer security of supply with the bulk of UK supplies emanating from the Middle East and Russia.

The UK government is providing robust and continued support to the renewable energy sector as demonstrated in its 2003 Energy White Paper targets. The ongoing government commitment set out in both the July 2005 and May 2007 Energy White Paper updates has reinforced these aims (see full documentation in the downloads section). The UK Government leads the world with its stated aim of providing 10% of the nations electricity from renewable sources by 2010 - and reaching 20% by 2020. The recent Carbon Trust Report(www.carbontrust.co.uk) states that

‘Marine energy has the potential to supply up to 20% of UK electricity needs…’

Climate change caused by the build up of carbon emissions arising primarily from the burning of fossil fuels has to be seriously addressed.

‘Carbon dioxide and other gases warm the surface of the planet naturally by trapping solar heat in the atmosphere. This is a good thing because it keeps our planet habitable. However by burning fossil fuels such as coal, gas and oil and clearing forests we have dramatically increased the amount of carbon dioxide in the Earth’s atmosphere and temperatures are rising. The vast majority of scientists agree that global warming is real, it’s already happening and that it is a result of our activities and not a natural occurrence. The evidence is overwhelming and undeniable.’
Taken from ‘An Inconvenient Truth’ – Al Gore

The Kyoto Protocol and its bearing on global warming are new factors affecting commercial decisions relating to energy. Europe's Emissions Trading Scheme unites the 27 states of the European Union in an attempt to cut emissions of the gases fuelling climate change. Under the UN Kyoto Protocol, a legally binding global agreement to reduce greenhouse gas emissions, industrialised nations are obliged to reduce the amount of greenhouse gases being released into the atmosphere. The EU is required to cut its emissions by 8% from 1990 levels by 2012. In addition individual member states have varying targets for renewable energy use which have to be achieved by 2020 and vary from as low as 10% for Malta to 49% for Sweden. The UK has a target of 15% and the EU as a whole expects to reach 20% As the social costs of fossil fuels are factored into energy costs then renewable/sustainable will become increasingly attractive to long term growth investors. In addition economies of scale with regard to energy projects will see increasing returns on capital invested over time. This is a new growth platform in a defensive stock.

Predictable, Invisable, Economic Text