Andrew Bowie

The Official Receiver (OR) decided to cease refining operations at Prax Lindsey Oil Refinery on 21 July 2025. However, the sales process continued to be run in parallel, and the OR has received a range of proposals - from specific asset acquisition to acquisition of the entire Immingham site to purchasing the refinery as a going concern. The OR has progressed a small number of parties to the next phase of the sales process. This is based on an assessment of their proposals with regard to providing the best outcome for the Company’s creditors in line with the liquidator’s statutory duties. The OR aims to conclude negotiations with interested parties by mid-October.

The Government is providing the OR with short-term funding to cover the essential operating costs of the site. The final operating cost will depend on market conditions and the strategy adopted by the OR. Parliament will be kept informed of the associated costs through the usual budgetary and reporting mechanisms.

Ministers have held several meetings with the OR since the insolvency was announced. Insolvency legislation clearly determines the actions that are undertaken by the liquidator, which is the OR. The OR must act independent of Government, in accordance with statute, and they are accountable to the court. As an independent office holder, the OR cannot be directed by Government.

The Official Receiver (OR) decided to cease refining operations at Prax Lindsey Oil Refinery on 21 July 2025. However, the sales process continued to be run in parallel, and the OR has received a range of proposals - from specific asset acquisition to acquisition of the entire Immingham site to purchasing the refinery as a going concern. The OR has progressed a small number of parties to the next phase of the sales process. This is based on an assessment of their proposals with regard to providing the best outcome for the Company’s creditors in line with the liquidator’s statutory duties. The OR aims to conclude negotiations with interested parties by mid-October.

The Government is providing the OR with short-term funding to cover the essential operating costs of the site. The final operating cost will depend on market conditions and the strategy adopted by the OR. Parliament will be kept informed of the associated costs through the usual budgetary and reporting mechanisms.

Ministers have held several meetings with the OR since the insolvency was announced. Insolvency legislation clearly determines the actions that are undertaken by the liquidator, which is the OR. The OR must act independent of Government, in accordance with statute, and they are accountable to the court. As an independent office holder, the OR cannot be directed by Government.

The Government continually monitors fuel supplies across the country and has robust, tried and tested plans in place to ensure these supplies are maintained at all times. We continue to work closely with industry to monitor the situation.

The prices of fuel are influenced by (i) fluctuations in crude oil prices and (ii) refining margins, both of which are affected by global market conditions. We do not expect the closure of Prax Lindsey oil refinery to impact prices.

DESNZ is unable to comment on the specifics of any individual project or the investment decisions of individual operators while the regulatory process is underway. This is a matter for the North Sea Transition Authority.

DESNZ is unable to comment on the specifics of any individual project or the investment decisions of individual operators while the regulatory process is underway. This is a matter for the North Sea Transition Authority.

Recognising the importance of renewable and smart energy systems for flexibility and decarbonisation, the Department is working to ensure these systems are developed in a way that is secure by design, protecting energy supply, infrastructure and consumers, as well as national security. As part of this work, Government has published two consultation packages which set out proposals for minimum security and grid stability requirements, including for organisations remotely controlling electrical load.

The Department collaborates with other government departments, agencies, Ofgem and industry partners to understand and mitigate threats to energy infrastructure, setting robust regulatory standards for cyber security through the Network and Information Systems Regulations. This includes working with regulators to ensure these regulations cover critical operators as the sector evolves.

Recognising the importance of renewable and smart energy systems for flexibility and decarbonisation, the department is working to ensure the system continues to be secure by design, and protects energy supply, infrastructure and consumers. As part of this work, Government has published two consultation packages which sets out proposals for minimum security and grid stability requirements, including for organisations remotely controlling electrical load.

Maintaining security of energy supplies is a key priority and critical energy operators are required to meet a minimum standard of cyber security and resilience, through the Network and Information Systems Regulations 2018. Distributed and smaller-scale generation are key components of a smart and resilient energy system.

As an open economy the UK welcomes foreign trade and investment where it supports growth, meets our regulatory requirements, and does not compromise our national security. The protection and security of the energy sector is a priority of this Government.

As well as the Electricity Act 1989, we have a range of effective measures in place which give the Government powers to balance an open investment environment to facilitate growth with protecting the parts of our economy that are the most sensitive to national security.

The protection and security of the energy sector is a priority for this Government, including manging risks from supply chains. DESNZ will continue to work closely with cross-government counterparts alongside industry to explore what further proportionate action can be taken to reduce the risks to energy infrastructure.

Ofgem and DESNZ have robust market monitoring schemes to assess electricity generation licence applications. Ofgem’s principal objective is to protect the interests of existing and future consumers, including the reduction of greenhouse gas emissions and security of supply.

Maintaining security of energy supplies is a key priority and critical energy operators are required to meet a minimum standard of cyber security and resilience, through the Network and Information Systems Regulations 2018.

The Department works continually with Ofgem and the National Cyber Security Centre to ensure that these regulations continue to capture all the most critical operators of energy generation systems. Distributed and smaller-scale generation are key components of a smart and resilient energy system. We are working to ensure that the system is developed in a way which is secure by design.

Solar goods and services are global commodities, and it is likely that we will continue to require imports in the short to medium term.

The UK has a strong electrical manufacturing sector and there is an opportunity to scale this up through our ambitious Industrial Strategy, which has identified advanced manufacturing and clean energy industries as priority growth sectors, providing benefits for the manufacture of balance of system components, which are essential to enabling solar installations.

The Solar Roadmap also commits government to consider the case to further support companies wishing to scale up production of solar technologies and processes, including inverters.

The Government recognises biomethane as a practical and cost-effective way of contributing to net zero greenhouse gas emissions. The UK Emissions Trading Scheme (ETS) applies a zero emissions factor to combustion of biomethane where supplied directly to ETS installations. Where biomethane is injected into the gas grid, there is not currently a mechanism to ensure biomethane is accounted for separately.

The UK Government and the EU commission have committed to work towards establishing a link between carbon markets, with the details of a potential link subject to negotiations.

Guidance on how Scope 3 emissions should be assessed as part of the Environmental Impact Assessment process has now been published. This provides clarity for the North Sea oil and gas industry. Developers can now resume the submission of environmental statements and each will be assessed on its own merits. As the projects to which these environmental statements relate will be subject to future regulatory decisions, it would be inappropriate to comment on the specifics of any individual cases.

The North Sea is a highly mature basin. Production of oil and gas has been declining since a peak in 1999 and around 80% of our oil is exported.

The UK benefits from a secure and diverse energy system, which allows us to draw on several sources, reducing our reliance on any single source.

The Government's Clean Energy Superpower Mission, supported by the largest investment in home-grown clean energy in British history, will enhance energy security by boosting our energy independence, protecting billpayers, and reducing exposure to global supply shocks.

Just under 12 per cent of UK oil imports originated in Kuwait (7.5 per cent), Saudi Arabia (2.5 per cent), and the United Arab Emirates (1.6 per cent) in January to April 2025 (Energy Trends, Table 3.14), similar to 2023 and 2024. The Strait of Hormuz is the primary export route for these countries. Imports were predominantly of jet fuel and white diesel.

No decision has yet been taken on whether to pursue a future large-scale project beyond Sizewell C or where such a project would be located. Therefore, the government has not carried out an assessment of the economic impact of any future project on the Welsh economy. However, by comparison, Hinkley Point C supports about 10,000 jobs during construction and will support approximately 900 permanent jobs during its 60 years of operation.

Data on UK gas reserves is published in Energy in Brief; data for 2024 will be published on 31st July 2025. The North Sea Transition Authority publish projected production between 2025 and 2050.

The Midstream Gas System: Update to the Market published on 30th June highlights the government's focus on ensuring the resilience of gas supply and infrastructure as domestic production declines.

Great British Energy–Nuclear acquired the Wylfa site last year and we will set out our plans in due course. No decision has yet been taken on whether to pursue a future large-scale project beyond Sizewell C, but all nuclear projects are subject to a detailed value for money assessment, including cost.

The deployment of heat networks is predicted to have a positive impact on economic growth in the UK, however a full assessment of the scale of growth has not yet been undertaken. We will set out our long-term plans for heat networks in the Warm Homes Plan later this year, including the important role that they will play in achieving net zero, and in promoting economic growth.

The Government recognises that to achieve net-zero we will need to ensure all technologies including heat networks are able to meet their potential. The 10 Year Infrastructure Strategy will reduce uncertainty by bringing together a long-term plan for the social, economic and housing infrastructure across the UK. This will include clean energy sectors, which include heat networks. We will set out our long-term plans for heat networks in the Warm Homes Plan later this year, including the important role that they will play in achieving net zero, and in promoting local economic growth.

The Government recognises that to achieve net-zero we will need to ensure all technologies including heat networks are able to meet their potential. The 10 Year Infrastructure Strategy will reduce uncertainty by bringing together a long-term plan for the social, economic and housing infrastructure across the UK. This will include clean energy sectors, which include heat networks. We will set out our long-term plans for heat networks in the Warm Homes Plan later this year, including the important role that they will play in achieving net zero, and in promoting local economic growth.

The government only supports the use of sustainable biomass, and generators only receive subsidies for biomass that meets our robust sustainability criteria. Domestically sourced and imported wood pellets, regardless of the country of origin, are subject to the sustainability requirements in the current subsidy arrangements for biomass generators, which include supply chain emission thresholds and land-use criteria.

The government sets robust supply chain emissions thresholds as part of the sustainability criteria for large-scale biomass generation. Shipping, and all other transport, emissions are included in that requirement. As announced on 10 February, the supply chain emissions threshold for eligible large scale biomass generators is proposed to be tightened further under proposed arrangements with Drax, from 55.6 gCO₂e/MJ to 36.6 gCO₂e/MJ.

It is for individual generators to determine how and where to source sufficient, eligible material to meet the requirements set out by government.

Existing sustainability requirements for current subsidy arrangements include robust land-use criteria to ensure biomass is sourced from sustainably managed forests. This includes requirements around sustainable harvesting and biodiversity protection. Ofgem, as the independent energy regulator, is responsible for monitoring profiling data on land criteria and enforcing wider sustainability standards.

To further reduce the risk of wood pellets being sourced from environmentally significant areas, we will be excluding material sourced from primary and old growth forest from being eligible for subsidy under the proposed Heads of Terms with Drax announced on the 10^th February.

All biomass pellets for UK generation, regardless of country of origin, must meet supply chain emissions thresholds; these have been tightened further to 36.6 gCO₂eq/MJ in the Heads of Terms agreed with Drax and announced on 10 February.

It is for generators to determine how and where to source compliant sustainable biomass pellets to meet the required volumes of generation.

Biomass generators are required to submit monthly sustainability data and annual audit reports from an independent verifier under existing subsidy arrangements. These data returns are scrutinised by Ofgem, and include compliance with land and GHG greenhouse gas (GHG) emission criteria, volume of biomass, fuel name, fuel type and voluntary certification scheme used. This applies to biomass sourced from the UK, US or any other nation.

At the announcement of the new Heads of Terms with Drax on 10 February, we made clear that sustainability assurance arrangements for future large-scale generation will be strengthened further. We are working closely with expert bodies including Ofgem, LCCC and SBP to enhance reporting, ensuring best practice in sustainability and land use.

The Government does not enter into agreements with other governments on the supply of biomass for UK power generation. Rather, it sets sustainability criteria which must be met for generation to be eligible for subsidy, and it is for individual generators to determine how and where to source material to meet these requirements.

My Rt. Hon. Friend the Secretary of State for Energy Security and Net Zero engages regularly with international counterparts on a number of issues.

My Rt. Hon. Friend the Secretary of State for Energy Security and Net Zero engages regularly with international counterparts on a number of issues.

The Department is responsible for the policy framework within which the North Sea Transition Authority (NSTA) operates. The OGA Strategy outlines how the NSTA’s principal objective will be met. The NSTA does so in several ways – for example, facilitating collaboration across the basin.

The Building the North Sea’s Energy Future consultation, which closed on 30 April 2025, sought views on whether the NSTA’s principal objective of maximising economic recovery adequately reflects the current context in the North Sea and supports the Government’s strategic objectives. The Government will respond in due course.

Carbon savings through fuel switching from fossil fuels to low carbon alternatives and improvements in resource and energy efficiency are needed for the industrial sector to transition to net zero. We are developing a suite of policies to enable industry to deliver these savings. As we do so, we are closely engaging with industry, both with sector trade associations as well as with manufacturers directly, to identify and understand the challenges, barriers and costs of their decarbonisation pathways.

CCUS requires significant resources, and it is right that it is considered within the Spending Review. We continue to engage at both working and ministerial level with all future projects, including Track-2, and further decisions for future CCUS deployment will be taken in due course.

Regulation plays a critical role in supporting the low-carbon technologies of the future, whether in electric vehicles or sustainable aviation fuel. DESNZ is taking steps to review the compliance costs of regulation as part of the Government’s Regulation Action Plan. For example, the Department has started a review of the energy and emissions reporting landscape to identify opportunities to reduce undue administrative burden, and has launched its Review of Ofgem.

The Government recognises biomethane as a practical and cost-effective way of contributing to net zero greenhouse gas emissions. The UK Emissions Trading Scheme (ETS) applies a zero emissions factor to combustion of biomethane where supplied directly to ETS installations. Where biomethane is injected into the gas grid, there is not currently a mechanism to ensure biomethane is accounted for separately.

As outlined in the future policy framework for biomethane production call for evidence, the Government is working with the ETS Authority to consider whether the ETS could account for biomethane injected into the gas grid and will provide an update on this in due course.

Since July last year, we have provided a host of support and guidance to industry. This has included: guidance to SMEs through our Business Energy Advice Service (BEAS) pilot and to local clusters through our Local Industrial Decarbonisation Plans scheme; funding for further studies and projects supporting industrial decarbonisation under the Industrial Energy Transformation Fund; and providing updates to the market on our hydrogen and carbon capture business models and support, as well as confirming £21.7bn funding to launch the UK’s first carbon capture sites.

To give longer-term confidence for industry to decarbonise, we will publish an Industrial Decarbonisation Strategy ensuring growth opportunities are captured in tandem with emissions reductions.

In February 2024, the Department issued a Call for Evidence (CfE) on a future policy framework for biomethane production, which included consideration of a national target.

We are considering the responses to the CfE as part of policy development and will set out further details in due course.”

Guidance on recommended home energy efficiency improvements is devolved. In Scotland, constituents can visit the Home Energy Scotland webpage for advice.

The Warm Homes Plan will help people find ways to save money on energy bills and transform our ageing building stock into comfortable, low-carbon homes that are fit for the future. We will upgrade up to 5 million homes across the country by accelerating the installation of efficient new technologies like heat pumps, solar, batteries and insulation.

We will partner with combined authorities and local and devolved governments to roll out this plan. Further details on the Warm Homes Plan will be set out in due course.

Yes, Great British Energy (GBE) will be considered a “public authority”, and thereby a “contracting authority”, where it is not operating on a commercial basis.

Under the Procurement Act 2023, GBE can reject bids and terminate contracts with suppliers that are known to use forced labour themselves or anywhere in their supply chain. In addition, GBE will utilise the debarment list to ensure that suppliers with unethical supply chains cannot participate in procurement or be awarded contracts. The company will appoint a senior individual in the organisation to lead on ethical supply chains and modern slavery.

The government has inherited a fragmented consumer protection framework for installation of measures that improve the energy efficiency of homes. This will be reviewed and reforms brought forward in the Warm Homes Plan, so that people can be confident of the quality of upgrading and insulating homes, which could help save money on their bills.

Dan McGrail, the interim CEO, will work from Great British Energy’s (GBE) Aberdeen HQ, and we have recently launched the recruitment campaign for the permanent CEO, which is also advertised as Aberdeen-based.

The first recruitment campaigns for the senior team have been launched, and of the three permanent Director-level positions advertised up to this point, two will be based in Aberdeen.