Energy & the global game

First came BASF chairman Kurt Bock, who over lunch told me his preference for building new chemical plants in the US due to its low energy costs resulting from the shale gas boom (a full interview with Bock will appear in January’s issue of Process Engineering).

Now this week Ineos chairman Jim Ratcliffe has also pointed out that from all the countries his firm operates in, energy consumed in the UK is the most expensive. See his interview with the BBC above.

The state of European energy markets seriously threatens the ability of energy intensive manufacturing companies to compete on the world stage

TCE managing director Martin Ashcroft

Ratcliffe’s and Bock’s complaints are not idle threats. Earlier this month Tata Chemicals Europe (TCE) announced the closure of its Winnington soda ash and calcium chloride plants in Cheshire and a loss of 220 jobs, with TCE managing director Martin Ashcroft blaming the closure on energy prices.

“The energy challenge that TCE has faced is an example of how the state of European energy markets seriously threatens the ability of energy intensive manufacturing companies to compete on the world stage,” said Ashcroft when announcing the closure on December 9th.

What is the solution? How can we bring down energy costs so that our chemical companies can compete against low energy costs in the US and low labour costs in Asia?

The solution for both Bock and Ratcliffe is to bring costs down by both repealing subsidy support for renewable and nuclear energy generation while allowing shale gas development to sweep the continent.

Amec yesterday reported to the government that shale development in the UK could produce 0.12 to 0.24 trillion m3 of gas, more than twice the approximate 0.1 trillion m3 of gas consumed in the UK each year.

While nowhere near the quantities coming out of the US, it is easy to see why Ratcliffe is considering Ineos entering into not only shale import but shale production in the UK – direct access to these resources could prove a lifeline to many process industries in the UK, just as it has resurrected many struggling manufacturing sectors in the US.

A Christmas Appeal

This is my last comment article before Christmas, and I wanted to take the time to wish you a merry Christmas and a happy new year.

As it is a time of spreading peace and goodwill to all men (and women), I wanted to ask your support for a cause close to my heart.

You may have noticed in the news this week that a modern anti-slavery bill was debated in Parliament. This bill recognises the fact that through human trafficking as many as 10,000 people are believed to be living as virtual slaves in Britain, mostly working in the sex trade, but also in areas that touch on the process industries, such as agriculture and food processing.

The British Red Cross has confirmed that The Catholic Worker Farm is the only place in the South East where they can refer mothers and their babies together

One charity near Process Engineering’s headquarters in Hertfordshire regularly cares for women and child victims of human trafficking. These women have often been brought into the UK illegally and forced into prostitution. When they escape their terrible situations they usually find themselves homeless and destitute, without any form of government support because of their immigration status. If these women have children, they often face being left on the street while their child is taken from them and put into care.

The British Red Cross has confirmed that for these women, The Catholic Worker Farm is the only place in the South East where they can refer mothers and their babies together.

This wonderful charity is in desperate need of financial support, and in particular £16,200 to renew the lease on their property, buy heating oil for the winter, and repair damp damage to their kitchen.

Please go to The Catholic Worker Farm’s crowdfunder page to watch a video with more information, and to donate.

Thank you for you generosity, and merry Christmas.