• UKEF bond support enables Scottish firm First Subsea Ltd to land multi-million pound export opportunities with offshore wind farms overseas.
• First Subsea Ltd transitions away from oil and gas to the renewables market with £12 million of export orders.
• UKEF is actively seeking out renewable energy projects overseas, with a huge pipeline identified, and £2bn of direct lending dedicated to financing clean growth projects, aligning with the PM’s 10 point plan.

First Subsea Ltd, leading designers and manufacturers of Cable Protection Systems for fixed and floating offshore wind farms, has won major contracts to supply several offshore wind projects in overseas markets thanks to financial support from UKEF.

First Subsea, part of the First Tech Ltd group headquartered in Aberdeen, has recently shifted away from fossil fuels to operating almost exclusively in renewables. Its cable protection systems are designed specifically for the challenging environmental conditions associated with offshore wind farms.

The UK government is helping UK companies export the country’s world leading expertise in the offshore wind sector, and estimates export opportunities for the UK’s low-carbon sector will be more than £60 billion by 2030. Recognising this, First Subsea radically changed its business model to seize these opportunities and now has over £12 million of export orders to supply offshore wind farms.

To help First Subsea fulfil these orders, UKEF, the government’s export credit agency, provided Virgin Money with an 80% guarantee on bonds required by First Subsea Ltd to fulfil several export contracts, together worth millions of pounds, in the offshore wind sector across Europe and Asia-Pacific. First Subsea is now growing its renewables-focused strategy, expanding its UK operations in both Lancaster and Aberdeen.

Steven Brown, Group Finance Director – First Tech Ltd, said:

The support from UKEF and Virgin Money has enabled us to not only complete vital projects but will enable First Subsea Ltd to execute far more projects concurrently. The process in getting the facility in place was exceptionally well managed and we look forward to working with both teams moving forwards. The First Subsea Ltd business continues to grow at a rapid pace and certainly the support from UKEF and Virgin Money will help facilitate the execution of our ambitious growth strategy.

Minister for Exports, Graham Stuart MP, said:

We are lucky to have the best credit agency in the world, and UKEF stands ready to help more Scottish exporters like First Subsea win big contracts overseas. UKEF is helping us accelerate the transition to clean energy, which will bring prosperity and a wide range of sustainable jobs to Scotland.

The recently-published Green Trade report from the Board of Trade highlights how vital free trade will be in helping the UK and the world build back greener from the pandemic, and this support is just one example of the work we do to ensure this outcome.

Alastair McMillan, UKEF Export Development Manager for Scotland, commented:

It’s great to see more UK companies export their unique products and services to help drive sustainability. First Subsea shows how British companies are increasingly at the vanguard of the global transition to renewable energy and UKEF is here to make sure UK exporters have the financing they need to export.

Andy Tait, Director, Regional Banking, North & East Scotland, at Virgin Money, said:

First Subsea has been a customer of Virgin Money for a number of years and we’ve supported its growth aspirations as it has moved into the renewables sector. With sustainability high on the agenda, First Subsea’s world leading CPS technology will continue to play a key role in their continued growth in area.

About UK Export Finance

UK Export Finance is the UK’s export credit agency and a government department, working along-side the Department for International Trade as an integral part of its strategy and operations.

Established in 1919, it exists to ensure that no viable UK export should fail for a lack of finance from the private market. It provides finance and insurance to help exporters win, fulfil and get paid for export contracts.

About First Tech Group plc

First Tech is group of companies that offer a wide variety of services across a number of different industries with a good coverage of the Oil and Gas industry and the emerging renewables market.

The group is made up of the following companies:

• First Subsea
• First Integrated Solutions
• First Marine Solutions
• Mooring Systems
• First Competence

Singapore, 27 July 2021

Ships from the UK’s Carrier Strike Group, led by the aircraft carrier HMS Queen Elizabeth, performed an exercise with the Republic of Singapore Navy (RSN) yesterday (26 July).

The exercise, to advance interoperability and coordination between the two navies, builds on the deep and long-standing defence partnership between the UK and Singapore.

It was also the first time that ships from the Royal Navy’s 5th generation Carrier Strike Group exercised alongside the RSN.

Eight ships were involved in yesterday’s exercise:

• HMS Queen Elizabeth, aircraft carrier
• HMS Kent, Type 23 anti-submarine frigate
• HNLMS Evertsen, De Zeven Provicien-class frigate (Royal Netherlands Navy)
• USS The Sullivans, Arleigh Burke-class destroyer (US Navy)
• RFA Tidespring, Fast Fleet Tanker
• RSS Intrepid Formidable-class frigate (Republic of Singapore Navy)
• RSS Unity Independence-class littoral mission vessel (Republic of Singapore Navy)
• RSS Resolution Endurance-class landing ship tank (Republic of Singapore Navy)

The Strike Group, which set off on its maiden deployment in May this year and has successfully conducted operations and engagements in the Mediterranean, is now in the Indo-Pacific.

The purpose-built aircraft carrier replenishment ship, RFA (Royal Fleet Auxiliary) Tidespring broke away from the main group on Friday (23 July) for a quick and contactless replenishment pit-stop in Singapore. She will now sustain the group as it proceeds further east.

The Group will next undertake a series of multinational exercises with global allies in the Philippine Sea. Later in the year, the Carrier Strike Group will return to Singapore.

A ship from the Group will also take part in Exercise Bersama Gold – with Malaysia, Singapore, Australia and New Zealand – this will mark the 50th anniversary of the Five Power Defence Arrangements.

Commodore Steve Moorhouse, Commander United Kingdom Carrier Strike Group, said:

The Royal Navy has huge affection for Singapore based on our history together, but Singapore is also a beacon of enterprise in a region that is growing in strategic importance. The arrival of the Carrier Strike Group in Southeast Asia is a clear sign that the United Kingdom is ready to work with friends and partners, new and old, to strengthen the security and freedoms upon which we mutually depend.

We are grateful to Singapore for supporting an important logistics stop for RFA Tidespring as the Carrier Strike Group continues our programme at sea. We look forward to working with Singapore again in the autumn for Exercise Bersama Gold, which marks the 50th Anniversary of the Five Power Defence Arrangements.

Her Excellency, Kara Owen, British High Commissioner to Singapore, said:

The Carrier Strike Group’s presence is another element of our strategic approach to the Southeast Asia region, alongside our engagement with ASEAN and our activity in support of trade and economic development.

We welcome Singapore’s support for the Carrier Strike Group’s deployment to the region. Our joint exercise showcases our navies’ ability to operate effectively together, underscoring the deep and strong defence and security partnership.

Further information

More information is also available in a media pack here.

The Carrier Strike Group (CSG) is led by HMS Queen Elizabeth – the most powerful surface vessel in the Royal Navy’s history – and this is her maiden operational deployment.   At 65,000 tonnes, she is the largest surface vessel ever constructed in the UK. Taller than Niagara Falls, her propellers generate the power of 50 high-speed trains.   She leads six Royal Navy ships, a Royal Navy submarine, a US Navy destroyer and a frigate from the Netherlands in the largest concentration of maritime and air power to leave the UK in a generation.

As part of its maiden operational deployment, the CSG will sail over 26,000 nautical miles, engaging with 40 countries from the Mediterranean to the Indo-Pacific and back again.

For media queries, please contact:

Adrian.Lim@fcdo.gov.uk

Funding to boost the UK’s transition to zero emission road freight, supporting industry and creating jobs has been announced today (27 July 2021).

Pioneering £20 million zero emission road freight trials, funded by the Department for Transport and delivered by Innovate UK, will help to develop innovative solutions to support the uptake of zero emission trucks.

Using learning from field testing battery-electric vehicles in a real-world environment, and from undertaking feasibility studies, these activities will help to design and develop cost-effective, zero emission heavy goods vehicles (HGVs) and their refuelling infrastructure right here in the UK.

Transport Secretary Grant Shapps said:

Through our bold and ambitious transport decarbonisation plan, we’re leading the way in the transition to zero emission vehicles by becoming the first country in the world to commit to ending the sale of all new fossil-fuelled road vehicles by 2040, subject to consultation. 

From Doncaster to Scotland, by working in partnership with industry, this funding will allow us to better understand the role of zero emission HGVs while levelling up the industry and boosting regional economies.

Successful projects include an ‘Electric Road System’ feasibility study, led by Costain Ltd, considering a 20-kilometre stretch of road near Scunthorpe for a possible trial of electric road systems. Electric Road Systems supply battery-electric trucks with electricity from overhead catenaries via a pantograph enabling HGVs to charge dynamically.

Meanwhile, a hydrogen fuel cell feasibility study, led by Arcola Energy Ltd, will design a possible future trial of hydrogen fuel cell trucks and new refuelling infrastructure in Scotland.

These projects, along with 4 other successful feasibility studies, aim to prepare for a potential demonstration of zero emission freight technologies at scale on UK roads and will support the rollout of zero emission technologies to decarbonise heavy transport vehicles.

Commercial vehicle manufacturing company Leyland Trucks will be deploying 20 DAF battery-electric trucks for use by public sector organisations to support the uptake of battery-electric trucks, enabling learning to be gathered from field testing vehicles in a real-world, real-time logistics environment. The investment in an interactive tool will de-risk, aid and encourage fleet operators to convert to battery-electric vehicles. This is an important step in the transition to zero emission road freight.

This announcement follows the launch of government’s transport decarbonisation plan along with the consultation on a phase out date for new non-zero emission HGVs – showcasing our ongoing support for industry to develop new and innovative technologies that will help the UK to meet net zero by 2050.

UK government minister for Scotland Iain Stewart said:

It’s great news that a study involving Scottish utility, logistics companies and the University of St Andrews to design a potential trial for hydrogen fuel cell trucks and new refuelling infrastructure has received a share of £20 million UK government funding.

The UK government’s transport decarbonisation plan will help the country build back greener from COVID-19. With Glasgow firmly on the world stage later this year for the COP26 summit, these projects are vital to showing how the UK is innovating to help save the planet.

Rob Lawton, Project Manager, at Leyland Trucks, said:

We’re delighted to have been selected to play such a key role in the initiative and we’re proud to be leading the drive towards a cleaner, more sustainable future for the road transport industry.

We believe our LF Electric and CF Electric vehicles offer the best solution for zero-emissions operation and we’re confident that the results from our NHS and local authority partners will support our own extensive and long-term testing programmes.

Richard Kemp-Harper, Strategy Director at Arcola Energy, said:

We’re pleased to be leading this initiative to decarbonise heavy-duty transport. The study will enable us to expand the application of Arcola Energy’s A-Drive fuel cell powertrain platform to a critical group of HGV operators that can benefit from Scotland’s strong potential for green hydrogen production.

William Wilson, CEO of Siemens Mobility Limited, said:

Investing in proven technologies like eHighways can help us go further and faster to decarbonise the UK’s transport network, and support jobs and growth to level up the country.

By building on successful trials from other countries like Germany, our ERS consortium M180 trial will help the UK move a step closer to replacing more polluting trucks with clean, efficient electric HGVs.

• Alok Sharma welcomes constructive discussions after 50+ countries came together ahead of COP26
• Ministers made progress on key issues, such as the need to scale up efforts to adapt to climate risks and for action to keep the 1.5C goal alive
• Canada and Germany to lead roadmap on mobilising $100bn a year in climate finance

Climate ministers have taken a step forward towards a successful COP26, as a constructive meeting in London concluded with countries coming closer together on key issues such as actions to keep the 1.5C goal alive, adaptation finance and concluding the Paris rulebook.

At the two-day ministerial, convened by COP26 President-Designate Alok Sharma to discuss critical negotiating issues and climate actions ahead of COP26, ministers from around the world sketched the outline of the Glasgow summit outcome and agreed collaborative ways forward to reach it.

Ministers from Singapore and Norway agreed to continue consulting informally with ministers on Article 6, which relates to carbon markets, while Rwanda and Switzerland’s ministers agreed to consult on Common Time Frames for emissions reduction commitments, or Nationally Determined Contributions (NDCs).

In a boost for the COP Presidency’s goal of getting finance flowing for climate action, Germany and Canada agreed to take forward a delivery plan for mobilising the $100bn a year from developed countries that is so critically needed to help others in their fight against climate change.

Countries were clear that COP26 needed to deliver actions, not just words. Many highlighted the importance of ending coal power, coal financing and fossil fuel subsidies. Ministers looked forward to Italy’s G20 leaders summit October 30-31 as a pivotal moment for action.

Ahead of the meeting, there has been a recent show of leadership from Small Island Developing States (SIDS) and Least Developed Countries (LDCs) including the Solomon Islands, Bhutan and Ethiopia, as well as more ambitious NDCs from Paraguay, Morocco and Canada which will help keep the critical goal of limiting global warming to 1.5C in sight. Ministers participating at the meeting called for all countries to deliver ambitious NDCs and long-term strategies towards net zero before COP26.

Mr Sharma welcomed the progress but stressed significant further work is needed, particularly on finance, adaptation and other crucial issues, with less than 100 days to go before countries come together in November for COP26 in Glasgow.

Following the meeting, COP26 President-Designate, Alok Sharma said:

The steps we have taken over the past two days bring us closer to securing an outcome at Glasgow that people and our planet are crying out for. However, fault lines remain on some critical issues, and there is more work to do. We have asked ministers to lead conversations in order to bridge divides and get us in the best possible position for COP26. Every country must now give their all to this process; lives and livelihoods depend on it, and we have no time to waste.

Patricia Espinosa, Executive Secretary of the UN Framework Convention on Climate Change said:

There can be no neutral position when it comes to climate action. It is necessary to come to an understanding and ensure the full implementation of the Paris Agreement, which is the most comprehensive and the only reliable strategy to address climate change.

John Kerry, US Special Presidential Envoy for Climate, said:

This is the decisive decade to confront the climate crisis and get on track to achieve the net zero global economy that the world needs. The major economies in particular have a leadership role to play in submitting by Glasgow ambitious 2030 targets and clear strategies for how we are all going to get to net zero emissions by 2050. We must make COP26 a pivotal moment for the world to come together to meet and master the climate challenge.

Germany’s State Secretary, Jochen Flasbarth, said:

As part of international solidarity, mobilising international climate finance is essential to support developing countries in reducing greenhouse gas emissions and adapting to climate change. A key part of this is delivering on the commitment of developed countries to jointly mobilise USD 100 billion per year through to 2025. I am very pleased to announce that following the request of COP26 President-Designate Alok Sharma, the Canadian Minister Jonathan Wilkinson and I will co-lead a process to ensure trust that developed countries stand by their commitments and deliver on the USD 100 billion goal. The design of the process will be developed by Minister Wilkinson and me in close coordination with the incoming COP Presidency over the next few weeks.

Barbara Creecy, South Africa’s Minister of Environment, Forestry and Fisheries, said:

We would like to congratulate the incoming UK COP26 President for providing Ministers with space to advance the key negotiating issues that are necessary for the success of COP26 in Glasgow.

Sir Molwyn Joseph, Antigua & Barbuda’s Minister of Health, Wellness and the Environment said:

At the UK’s July Ministerial, the message from Small Island Developing States (SIDS) appears to be well received. This provides a level of hope that the major emitters are beginning to understand their responsibilities and should be committed to keeping the 1.5 degree goal in reach.

Based on the forecast and trajectory from the best available science, we must achieve drastic emission reductions between now and 2030 to keep 1.5 alive. And as AOSIS Chair, I am committed to holding all countries accountable to this target. Moreover, major emitters, especially the G20, need to redirect all fossil fuel subsidies into renewable energy investments.

Realistically, this is going to require that we continue to press for declared commitments by the major emitters ahead of COP 26 in Glasgow. Coming into the Ministerial, I was unsure whether there was a recognition of the true need for addressing loss and damage. There now appears to be greater appreciation by the conference for the fact that: 1) SIDS bear the brunt of the negative effects of climate change in real terms; and 2) major emitters must accept responsibility to support SIDS, especially when climatic events inflict serious loss and damage to their infrastructure and economies. This has already resulted in the loss of life and disruption of livelihoods. For SIDS, this is not abstract, this is real! This is a matter of climate justice!

Environment Secretary George Eustice will also be hosting a related ministerial event on forests and land use tomorrow (27 July). The aim is to engage with key countries that cover the most significant forested regions of the world and build ambition ahead of COP26. Through changing and improving the way forests and other lands are managed, we can deliver up to 30% of the emissions reductions needed to limit global temperature rise to 1.5 degrees.

Ends.

Notes to editors:

1. Photos of the Ministerial are available on the Cabinet Office Flickr account: Day 1 and Day 2.
2. The COP26 President-Designate’s remarks to media at the end of the Ministerial are available here.

Over the past two days, Ministers from more than 50 countries have gathered in London, as well as online.

We have discussed the critical issues in the COP26 negotiations.

As we have done so, heavy rains and flash floods have swept London.

A sobering reminder of the urgency of our task.

This was the first face-to-face meeting of this kind involving Ministers for more than eighteen months.

It was a hugely refreshing experience, to be sitting across the table from one another.

In person, there was a very positive atmosphere in every session.

There was a sense of common endeavour and a shared desire to address the climate crisis before us.

It was wonderful to see colleagues renew existing relationships, and build new ones.

To sit around the table and have a discussion.

And we all heard, loud and clear, the message from Ministers from climate vulnerable countries on the need for renewed urgency to tackle the climate crisis. And their lived experience of extreme climate change.

We made progress over these two days. And there was a clear spirit of cooperation.

However, the issues we have discussed are complex.

There are still significant differences that persist.

We have moved closer together. But still, on these vital issues we are not yet close enough.

There is much more work to be done ahead of COP26 and in Glasgow itself.

And we have agreed ways to keep the conversations going and drive action forward in the 97 days that remain to COP26.

Over the past two days, we have reached a common understanding that COP26 needs to keep 1.5C within reach.

This was also agreed by the G20 agreed to do last week.

There was also a shared understanding from many that coal power and financing are not compatible with a 1.5 degree future.

And so the UK Presidency will take forward work on how the Glasgow outcome will respond to any gap in ambition to keep 1.5C within reach.

On adaptation, and adaptation finance particularly, we agreed we need a clear way forward

And together, we have emphasised the need for COP26 to accelerate progress on the Global Goal on Adaptation.

On finance, I have recently called for developed countries to publish a clear plan for how, together, we are going to deliver the $100 billion a year in international climate finance, which has been promised since 2009, between 2020 and 2025.

I am delighted that Minister Flasbarth of Germany and Minister Wilkinson of Canada have agreed to lead this process. This will bring much needed transparency and predictability to developing countries and also reinforce the trust that needs to be maintained.

On Article 6, I am grateful that Minister Fu of Singapore and Minister Rotevatn of Norway have agreed to continue their informal ministerial consultations.

Additionally, Minister Mujawamariya of Rwanda, and Minister Sommaruga of Switzerland, will take forward my invitation to consult with ministers on Common Time Frames for NDCs.

We will be initiating other ministerial consultations, including on transparency at the appropriate time, in the coming weeks.

Of course our experts and negotiators will also continue their discussions.

I hope that all this work will allow us to arrive in Glasgow in the best possible position to reach agreement.

It is incumbent on every country to give their all to this process.

There will be nowhere to hide at COP.

Each of us will be in the spotlight.

And we will only deliver by working together.

I have said all along how important it is to have real in-person discussions on these difficult issues.

We have gone to great lengths to make this Ministerial meeting happen and I’m grateful to everyone who joined us here and online.

Now we must deliver.

It is essential that, six years on from Paris, we agree these final elements of the Rulebook, that we forge a way forward on finance, adaptation and other critical issues.

Ultimately, our response must reflect the urgency of the crisis we face.

Between now and COP, we must, and we will, make every single day count.