PM ‘not happy’ with PM’s statement about the BHP deal

PM ‘not happy’ with PM’s statement about the BHP deal

October 15, 2021 Comments Off on PM ‘not happy’ with PM’s statement about the BHP deal By admin

Theresa May has said it is “not good enough” to comment on the controversial $15bn deal between BHP and Royal Dutch Shell over the production of BHP’s new coal-fired power plant.

The Prime Minister’s official spokesman said in a statement that while she was “not happy” with the deal, it would not affect the UK’s commitment to fighting climate change.

The announcement, announced on Tuesday, comes amid growing concern about the impact of rising temperatures on the UK economy. 

It comes at a time of economic uncertainty over the future of the country’s coal industry and its impact on the carbon market.

“This deal has the potential to undermine our commitment to tackling climate change,” Ms May said.

“The Government will continue to lead on tackling climate and supporting renewable energy sources to keep the UK a global leader in climate action.”BHP boss BHP Billiton and Shell’s Chief Executive Shell James met last week to discuss a deal that would see BHP take over the operation of the B&H coal plant at Loughborough, near Wigan.

Ms May’s announcement is likely to further complicate the UK government’s relationship with Shell and the coal industry. 

BHP, based in South Africa, and Shell, based near Dubai, have been in a bitter dispute with the UK over their use of coal-burning power stations in the UK.BHP was initially awarded the contract to build the new plant in 2020 and was due to receive $15.3bn (£9.6bn) in upfront payments in 2018.

Shell and BHP have argued the payment was too high and in 2016 the UK Court of Appeal ruled that the company should be given the opportunity to raise more money.

The UK government, which has long been a major coal buyer, has been in talks with the two companies about their future plans. 

On Tuesday, the government said it would work with BHP on a new deal to supply the new coal plant.

“We are not satisfied with the current arrangement,” Ms Mills said. 

“We will continue with our discussions with Shell on a long-term plan to support British coal industry, including through a new B&A (coal) plant.”

The deal, which is expected to be approved by the Government’s National Energy Strategy Committee, will allow BHP to use its existing assets in Loughboro and the Isle of Wight to produce up to 800MW of electricity.

The company said it expects to be able to increase its coal capacity to about 800MW from the current 100MW. 

Shell, which also owns a majority stake in the Loughboaks plant, has said that it will not invest more than 5 per cent of its output in Lroughborough, which Shell has described as “not viable”.

The UK’s new power plant, known as Loughborrow, was the first in the country to be built with a combined capacity of 800MW, but has struggled to meet the countrys demand.

The government has pledged to cut carbon emissions by at least 80 per cent by 2050 and by 70 per cent from 2030.