EU subsidies to fuel BP and Shell projects, says O’leary
BP AND Shell are “very excited” about investing in the EU after Brussels unveiled more favourable incentives for green projects, Michael O’leary has claimed.
The Ryanair chief said the two oil giants had indicated that a recently announced package of subsidies from Brussels had made investing in the Continent more attractive.
Mr O’leary said that meanwhile, Britain was lagging behind.
The EU has unveiled a series of subsidies to attract investment in green industries and technologies. It is in response to the Inflation Reduction Act (IRA) in America, which was signed into law last year and includes $369bn (£296bn) of funding for net zero projects and energy security.
Europe’s subsidies could make the production of sustainable aviation fuel (SAF) cheaper. As a result, it is likely to become a hub for the production of the green fuel, which is made from waste such as used cooking oils.
Mr O’leary said: “The Europeans are now much more aggressive about subsidising production of SAF and alternative fuels than the UK.
“The UK is still running well behind them and I spoke to two oil majors, Shell and BP, in the last two weeks who are very excited about the European response to the IRA in the States.
“They think it could be the gamechanger for the production of SAF in Europe over the next five years.”
Britain has indicated that it is willing to roll out a contracts for difference regime to support SAF – similar to that introduced a decade ago to incentivise wind energy investment – but the details are yet to be finalised.
‘The Europeans are much more aggressive about subsidising production of SAF and alternative fuels’
Mr O’leary said: “The UK is sort of struggling to form a response to the IRA … Europe looks like it’s going to be much more aggressive.”
Shell declined to comment. BP did not respond to a request for comment.
Mr O’leary’s comments came as Ryanair posted its first annual profit since the pandemic shut down flights around the world. Pre-tax profits in the year to March were €1.4bn (£1.2bn) compared with a €430m loss in the previous year. Air fares were about 10pc above pre-pandemic levels.