Grangemouth Oil Refinery
Debate between Baroness Hayman and Lord Hunt of Kings Heath(1 month, 1 week ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, I think the noble Lord is being unfair. Of course we want to see workers who are being displaced by changes in the industrial sector being helped and supported as much as possible, with additional training to enable them to accept good jobs in other sectors. At Grangemouth, a support facility is being made available, with training need analysts for each worker, and I gather that 300 such employees have already requested to take advantage of that. There are open evenings, career fairs and direct engagement with local employers.
As for the North Sea, I just make the point to the noble Lord that, although he has an obsession with gas, the fact is, as he knows, that the UK continental shelf is a declining basin. In the last 10 years, 70,000 people lost their jobs under the stewardship of the Government he served. I did not see much effort there by that Government to establish programmes to provide good jobs. We are at the early stages. We are working very hard. The green energy sector, including nuclear, has huge opportunities and we need to do everything we can to ensure that skilled workers being displaced in some areas of the energy sector are given every opportunity to take up new roles.
Baroness Hayman (CB)
My Lords, I declare my interests as set out in the register. Given what the Minister has just said, is it not important that the sorts of skills, advice, training and support that he has described for Grangemouth are available much more widely if the transition is to take place effectively—and justly—in other areas? What plans are there to bring in the skills passporting programme that we have argued for for many years, as well as the specific training that will be needed?
Lord Hunt of Kings Heath (Lab)
My Lords, I take the point, although I think it is right that we have some specific measures in relation to Grangemouth. I also think it is right to refer to a 2023 report by the CBI, which showed that there was a 9% increase in the green economy that year compared with 1% overall, and 950,000 people are now working in what could be described as a net-zero green economy. These are often very good, very well-paid jobs. We have a number of regional skills hubs. In the nuclear sector, we have a separate nuclear task force taking work forward in relation to this. The challenge we face is that, over the next few years, we need thousands more people to come into the low-carbon energy sector. We are doing everything we can, working with industry and with further education, to ensure that that happens.
Energy Prices
Debate between Baroness Hayman and Lord Hunt of Kings Heath(1 month, 1 week ago)
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Baroness Hayman (CB)
My Lords, I declare my interests as set out in the register. The market for electricity in this country is obviously a very complicated one, but Ofgem made it clear in the announcement of the recent price increases that the link with international gas prices is influencing the current rise in the cost to consumers. Can the Minister assure me that, as we move to that clean power system, the REMA review that he mentioned will look at whether delinking the overall UK market from the price of natural gas internationally would be in the best interests of consumers?
Lord Hunt of Kings Heath (Lab)
My Lords, that is an interesting comment, and the noble Baroness is of course absolutely right. Our problem is that we are tied to international gas prices, and noble Lords who are fixated on our using even more gas need to consider the implications of that. We are looking at how future gas market networks would work in a situation where gas is used much more infrequently. On marginal pricing, the more we use renewables, the less we are concerned about the international market. The contract for difference limits enable us to pay the renewable developers at a price that has already been agreed, rather than worrying about what the international price market will be.
Licensed Oil and Gas Fields: Emissions
Debate between Baroness Hayman and Lord Hunt of Kings Heath(1 month, 3 weeks ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, first, I join the noble Baroness in expressing my sympathy to all concerned in the tragic events that have taken place in the North Sea. I also agree with her that we should pay tribute to the emergency services—and, of course, we are very concerned about the environmental impact.
I ought to explain to the House that scope 1 emissions are direct company emissions that occur from sources owned or controlled by the company. Scope 2 are indirect emissions resulting from generation of purchased energy, typically electricity, or purchased heat. Scope 3 are all indirect emissions not included in scope 2 that occur in the value chain of the reporting company and include downstream and upstream emissions—if noble Lords wished to know what those scopes were.
The point here is that we would be double-counting the emissions—or that is the risk—if we went down the route that the noble Baroness suggests. We had this consultation in the light of the Finch judgment, because we needed to revise the environmental impact assessment to take account of scope 3 emissions. We are carefully considering the consultation at the moment, and it would be premature for me to say anything more at this stage.
Baroness Hayman (CB)
My Lords, I declare my interest as chair of Peers for the Planet. Did the consultation involve—I do not think that it did—the issue of ending venting and flaring, which is not essential, from oil and gas fields in the North Sea? We know how damaging that is, and the Minister will recollect that during debates on the Energy Bill noble Lords across the House took a view that it was a dangerous practice that needed ending. What are the Government doing about ending it?
Lord Hunt of Kings Heath (Lab)
My Lords, I believe that the noble Baroness is right that venting and flaring are not covered in the EIA consultation, which is about scope 3, and I think they would come into scope 1. We are, of course, concerned about this and are considering the matter. My understanding is that the upstream oil and gas sector overall makes up to 3% of total net territorial greenhouse gas emissions. Of course, we are committed to meeting carbon budgets 4, 5 and 6, and we have just received advice from the Climate Change Committee in relation to carbon budget 7—all those things come into the mix as well—but I certainly take seriously the point that the noble Baroness raises.
Gas Storage Levels
Debate between Baroness Hayman and Lord Hunt of Kings Heath(3 months, 2 weeks ago)
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Lord Hunt of Kings Heath (Lab)
That is right. NESO manages this with an operating margin, made up of the operating reserve—1,400 megawatts, which it always keeps in reserve. There is a contingency reserve of an additional 800 megawatts on top of that operating reserve. That contingency reserve was tight last week and so an electricity margin notice was issued, as my noble friend suggested. This is a perfectly normal market response to a tightening of the situation, which was resolved immediately.
Baroness Hayman (CB)
My Lords, I declare my interest as chair of Peers for the Planet. The Minister’s Statement and his reply to the noble Lord just now are reassuring, as was all the independent analysis of what happened last week. We were not in a crisis. Nevertheless, it is important that, as we move towards more dependence on renewables, we look at the issues of long-duration energy storage and energy efficiency. We do not have a long time until 2030. Can the Minister tell us when we will be able to put some real targets on the amount of long-duration energy storage, which the Science and Technology Committee of this House says that we need urgently?
Lord Hunt of Kings Heath (Lab)
My Lords, I was present during the debate on Thursday on the Select Committee’s excellent report on this very subject. I refer my friend the noble Baroness to the action plan that my department issued only a few weeks ago, estimating that between 40 gigawatts and 50 gigawatts of dispatchable and long-duration flexible capacity could be needed by 2030. We are going to take a number of interventions to ensure that this happens. We have already announced a ground-breaking deal with Net Zero Teesside, our first power CCUS project. We are developing a hydrogen-to-power business model to derisk investment in that area. Ofgem will be introducing the cap and floor scheme to support investment in long-term duration electricity storage. We aim to open the scheme to applications in quarter 2 of 2025. We fully take on board the point that the noble Baroness makes and the Select Committee report.
COP 29
Debate between Baroness Hayman and Lord Hunt of Kings Heath(5 months ago)
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Lord Hunt of Kings Heath (Lab)
I am grateful to the noble Lord, who raises a very important issue. In fact, during or around the time of the COP 29 discussions, we announced £5 million to help developing countries tackle methane emissions from their fossil fuels. This is supporting delivery of the global methane pledge launched at COP 26. However, I am very happy to take a further look at this and to respond to the noble Lord in some detail about what further actions we might take on this important matter.
Baroness Hayman (CB)
My Lords, I declare an interest as the chair of Peers for the Planet. There were two COPs this year but as far as I could see, in the Statement there was only one passing reference to nature, yet biodiversity loss and climate change are profoundly integrated and intertwined challenges. Does the Minister recognise that we need to find the policy synergies to address both issues and to manage the trade-offs that sometimes need to be made? Can he also think about where we could make a start with some integrated language in the Great British Energy Bill?
Lord Hunt of Kings Heath (Lab)
That is quite a challenge from the noble Baroness. When we come to Committee next Tuesday, we will certainly discuss this issue further, but I very much take her point about nature and biodiversity. She is also right to highlight that there are sometimes tensions. Yesterday we had an Oral Question on the use of farmland for solar farm development; there is clearly a tension there that has to be managed, and I very much accept the challenge she described.