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Government to grant fracking licenses

The bidding process for licences for the extraction of shale gas is to be opened by government for the first time in 6 years.

Companies granted a licence to begin test drilling will also need planning permission and environmental permits, and file an environmental impact report.

Around half of the UK, largely in the North, is available for licensing, including (though resticted on) National Parks.

The government has aimed to promote fracking in the UK, and has already announced a number of incentives to help kick-start the industry, including tax breaks, payments of £100,000 per site plus a 1% share of revenue to local communities.

It has also proposed new rules regarding rights to access land to speed up drilling.

The government argues that shale gas could bridge be used in the interim until renewable energy output is increased.

Opponents argue that it still emits CO2 linked to global warming, and has also been linked to water contamination and small earthquakes.

In the US, shale gas has seen energy costs tumble, but questions remain about whether the American shale revolution can be replicated in the UK and elsewhere.

In announcing the so-called 14th onshore licensing round, Business and Energy Minister Matthew Hancock said: “Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth.

“We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy.”

Photo: © Copyright K A and licensed for reuse under thisCreative Commons Licence.

This was posted in Bdaily's Members' News section by Clare Burnett .