LAW
Teesside poised to tap into reinvigorated energy sector
Turbines – Teesside is a leader in the development of offshore wind .
CHARGING FORWARD
A
new report from international law firm Womble Bond Dickinson reveals a revitalised UK energy sector at a pivotal point in the transition to cleaner energy – and Teesside is in a prime position to continue charging forward .
Energising Tomorrow : Womble Bond Dickinson ’ s Energy Transition Outlook 2025 , reveals a sector buoyed by significant improvements in funding opportunities and a supportive political climate , according to the insights of more than 1,300 global energy professionals , including more than 500 UK energy suppliers , investors and major commercial energy users .
Appetite for financing on the up One of the major findings from this year ’ s outlook is a shift from historically challenging financial conditions to one where UK energy professionals are now seeing a marked change in fortunes .
More than half ( 59 %) of respondents have noted improvements in financial conditions compared with last year , with close to a quarter ( 24 %) noting “ significant ” improvements in the overall market . This turnaround has spurred investment across all levels , with three-quarters ( 76 %) increasing their investments in the UK this year .
Stacey Hall , partner at WBD , said : “ Appetite for financing projects is now much more positive . Access to finance has become easier in the last 12 months due to positive changes in market conditions and the enticing carrot that is more attractive financial returns .
“ However , the continued focus on ESG ( environmental , social , and governance ) cannot be overstated for this boost , and overall , the report shows how producers and investors are looking to align to these goals by broadening their energy mix in the coming years .
“ Teesside is already a leader in the development of some of those at the top of the energy wish list – you only have to look at the carbon capture schemes , lithium manufacturing and offshore wind projects in the region to see there is well-placed confidence in Teesside as an attractive hub for energy transition .”
Optimistic outlook as market consolidates Alongside the rising confidence in financing , the sector also reports a new hive of activity around mergers and acquisitions , with a focus on strategic alliances and joint ventures that will reshape the sector .
Despite a more subdued market in recent years , 47 % of respondents are expecting to see substantial increases in deals over the coming 12 months , with just seven per cent anticipating any kind of decrease .
One potential reason for this may be the optimism around the recent change in government , with 57 % of respondents confident in the Labour government ’ s commitment to energy transition . But this comes with a caveat – 56 % stress the importance of policy interventions , such as stricter carbon regulations , increased funding for clean energy research and development ( R & D ) and new subsidies for renewable projects to truly drive progress .
David Ridley , managing associate at WBD , said : “ The trend may point to an indicator that smaller players are combining forces to achieve the scale necessary to deliver on bigger projects . This is a particular issue for green hydrogen where – up until now – smaller operators and start-ups have struggled to meet the demands of getting the technology off the ground .
“ Bringing major businesses to the North- East through mergers and acquisitions is a vital element of ensuring the region not only maintains its reputation as a leader in energy transition but also reinforces the wider local economy and confidence that industry-leading work has a natural home here .
“ WBD has advised on a number of deals involving the region in the energy space , including AESC ’ s development of its car battery factory near Sunderland ’ s
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