Green Energy: Ports

Debate between Graham Stuart and Stephen Crabb

Wednesday 18th October 2023 Westminster Hall

[Graham Stuart]

I thank the hon. Gentleman for another excellent and well-made point. One of the biggest challenges facing my Department is ensuring that we have the facilitating infrastructure. No matter how interesting the generation is—nuclear, floating, fixed-bed, onshore, offshore—it does not really matter if the electrons cannot get where they need to. That is why we commissioned the Winser review on transmission, and I am really grateful to him for his work. We are going to be reporting back on that as soon as we can. We are working closely with National Grid and others to speed up the extraordinarily long times it takes to put that infrastructure in place. The hon. Member for Aberavon was right to say that if we want to realise our Celtic sea ambitions or our other ambitions around the UK, we need the facilitating infrastructure.

More locally, we are also focused on connections. We will shortly be coming out with a connections plan, because we have queues filled with projects that may never go ahead. We need to find ways to deal with that legally and properly. We now have a dedicated Minister for Nuclear and Networks, precisely because we recognise the challenge. The hon. Member for Aberavon is right to highlight that. We are working flat out on it and it is probably our top priority.

[Stephen Crabb]

On the important issue that the hon. Member for Aberavon (Stephen Kinnock) raised about the grid, is the Minister aware of any specific work by National Grid looking at the grid needs of ports, so that we know which UK ports are going to be energy ports? We can predict where those locations are going to be and we can see activity already happening. Is National Grid doing a piece of work to map the grid requirements of the next 20 to 30 years and put together plans for individual port locations?

[Graham Stuart]

One recommendation of the Winser report was that we pull together a much more coherent overall spatial plan. In previous years, things were done on a fairly linear basis, as we have seen in East Anglia. We have been taking steps through the holistic network design—not necessarily the best title—in phases simply to ensure that we have a more strategic and joined-up approach. We cannot do it project by project; we have to plan the whole thing out. We want to take it from a regional basis to a national basis. Further information will be set out by the Government.

We are working with our European neighbours. I spoke to the German ambassador only this morning about the fact that all of us around the North sea need to think and work together on a common basis. If we do so, we will be better able to realise the huge opportunities in the surrounding seas, do so at the lowest possible cost and maximise European energy security and the jobs and benefits that spring from doing that work.

For floating offshore wind specifically, the industry road map 2040, developed by the floating offshore wind taskforce, identified the need for up to 11 ports across the UK to support the roll-out of commercial-scale floating offshore wind. That is a significant opportunity for the years to come. To support the industry, the Government launched the £160 million floating offshore wind manufacturing investment scheme, which the shadow Minister, the hon. Member for Manchester, Withington, asked about in one of the much more reasonable comments in his speech. We are doing everything we can to bring the timing of that forward and do the assessment, and I hope that we will be able to announce the next stage—due diligence—before the end of this year, but that is tight.

In the coming years, the UK and other countries will exponentially increase their offshore wind deployment in the North sea, the Celtic sea and across a range of new markets. We signed a memorandum of understanding with countries surrounding the North sea in the week before Christmas last year about our rejoining the North Seas Energy Co-operation forum, and we will be having another ministerial next month to ensure that we are working closely together.

We will work with industry, through RenewableUK and the Offshore Wind Industry Council, to assess supply chain needs, which so many colleagues have rightly raised, and to identify the opportunities for the UK to lead and benefit from sustainable growth in the industry, including through building new export opportunities. As a former exports Minister, I recognise that by leaning in ahead as we have done—we have cut our emissions more than any other country on earth—and developing the technologies and solutions, we then have the long-term opportunity to export it. If we can capture more than enough of that energy to meet our own needs, we can export it directly. We could also convert it into green hydrogen, and we can export that. We can also bring in the carbon that will still necessarily be emitted by certain industries and our western European neighbours and put that into the 78 gigatonnes of capacity we have in the North sea. There is so much to be done here, and it can make such a difference: it can bring about the renaissance of industry in the north-east and north-west of England, in Scotland, in Wales and in Northern Ireland, as well as all around the country. It is a very exciting thing.

As I said, ports are not just important for offshore wind. They will also play a key role for carbon capture and storage, supporting the decarbonisation of emitters. Maritime shipping will play a key role, linking emissions captured from the dispersed sites with offshore CO₂ storage sites. Import and export ports across the UK that can handle large volumes of CO₂ will be required to facilitate the transport and storage of CO₂ via ships. We heard about the plans for the Humber and elsewhere, indeed including on the south coast as mentioned in the brilliant, albeit short, speech by my hon. Friend the Member for Southampton, Itchen (Royston Smith).

On hydrogen, the Government recognise that port infrastructure will have a big role to play. We have a target of 10 GW of low-carbon production by 2030. As the hydrogen economy matures and the UK exploits export opportunities, we will need the right port infrastructure to accommodate large transport ships bringing in or taking away hydrogen, and we are determined to seize those opportunities for the UK economy. It is so important that we do not have an Administration who would do the exact opposite—and who have a track record of that.

Offshore Wind Contracts

Debate between Graham Stuart and Stephen Crabb

Tuesday 12th September 2023 Commons Chamber

[Graham Stuart]

If the Labour party is not nationalising or creating some state-owned behemoth, it wants just to hurl money in the direction of business. Our judgment is to balance those things and I am pleased to say that we have been successful; we have the largest offshore wind sector in Europe. This country and this Government, through the CfDs, transformed the economics from the situation we inherited after the right hon. Member for Doncaster North and his colleagues had been in power.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Delivering on the floating offshore wind project in the Celtic sea is vital for our energy security and decarbonisation. Does the Minister agree that we now need to bolster confidence in this emerging industry? There are two things he can do. Does he agree that a successful allocation of FLOWMIS money to the south Wales ports in order to get this industry moving is vital? Does he also agree that we need to ensure that the Crown Estate’s leasing round at the end of the year is done successfully, but with more than 4 GW of visibility, in order to send a strong market signal to the industry to invest?

[Graham Stuart]

My right hon. Friend is also someone who, through thick and thin, promotes that industry and sees the opportunity it offers Wales. He makes a special bid for the Welsh ports, as I would expect him to do, but he will understand that I can make no comment on that. I entirely agree with him on the importance of the Crown Estate round. Suffice it to say that across Government we have been working flat out, with his and other colleagues’ support, to support the Crown Estate to ensure that we maximise the opportunity in the Celtic sea.

Oral Answers to Questions

Debate between Graham Stuart and Stephen Crabb

Tuesday 23rd May 2023 Commons Chamber

[Graham Stuart]

Thank you, Mr Speaker. I will ask the Minister who leads on networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), to get in touch with my hon. Friend to discuss that further.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The Government’s plans for strengthening our energy security and reaching net zero have the potential to create tens of thousands of jobs in many of our communities. Does the Minister agree that the further education sector has a crucial role to play in unlocking new roles in engineering, technical and project management? The list goes on. Will he join me in commending Pembrokeshire College in my constituency, which is already working with floating offshore wind developers who are looking to bring new operations to the Celtic sea? They are showing the way forward in developing those new skills.

[Graham Stuart]

I congratulate Pembrokeshire College. It is so important to have the skills in place. That is what the green jobs delivery group is all about. Industry is working to make sure that we have the data on the forward expectations of need. That way, the Department for Education, through FE colleges and other institutions, can ensure that people have the right skills so that as much of the supply chain as possible for developing sectors such as floating offshore wind is here in the UK.

Powering Up Britain

Debate between Graham Stuart and Stephen Crabb

Thursday 30th March 2023 Commons Chamber

[Graham Stuart]

We are accelerating renewables as quickly as we possibly can. As I say, we have transformed the dire situation we inherited and we are moving as fast as we can on that, but we are going to need, and be dependent on, oil and gas for decades to come. Under net zero, we will still be using a quarter of the gas we use today. The hon. Gentleman is saying to his constituents, “Let’s pay billions to foreign, sometimes hostile, states, rather than producing our own.” That is economic madness. The gas we bring in on tankers has two and a half times the emissions of our domestically produced gas. On what planet would any rational and reasonable constituency MP want to propose that, unless they had some strange affinity with somewhere like Russia?

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The Minister is exactly right that we are on the cusp of a new industrial revolution. Floating offshore wind will be a key part of that picture, so I welcome the confirmation he has given today of the £160 million FLOMIS—floating offshore wind manufacturing investment scheme—port infrastructure package. Will he confirm when he is likely to start awarding that funding? Does he agree with me that it needs to be used in a really targeted way to unlock private sector investment and ensure we capture first mover advantage with floating offshore wind? Will he visit the port of Milford Haven to see the really exciting things happening in the energy sector there?

[Graham Stuart]

I thank my right hon. Friend who, like my hon. Friend the Member for Ynys Môn (Virginia Crosbie), is relentless in promoting and pursuing these interests. He can see that moving towards net zero and capitalising on the huge natural assets around Wales, can contribute to jobs, prosperity and industrial renaissance, as well as help us to deliver the transition. I would be delighted to visit him. In answer to his earlier question, we want to do that as soon as possible. We announced the opening of it today. We want to move forward. We have to accelerate everything we can do right across the piece.

Oral Answers to Questions

Debate between Graham Stuart and Stephen Crabb

Tuesday 28th February 2023 Commons Chamber

[Graham Stuart]

The hon. Gentleman is a very fine Member of this House, but I really would warn him against reading out the screeds produced by his party centre. In 2010, just 7% of our electricity came from renewables; it is now heading its way to half. Onshore wind has an important part to play, and we are looking at ways in which we can enable communities that do support onshore wind to go ahead and deliver it.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Alongside onshore wind, does my right hon. Friend agree with me that in this country we have a tremendous opportunity in front of us to seize first mover industrial advantage in the new floating offshore wind industry, particularly with respect to the Celtic sea? Does he agree with me that crucial to doing that, and to building domestic supply chains and domestic capability, is alignment of the Crown estate leasing process, the contract for difference and interventions such as freeports?

[Graham Stuart]

My right hon. Friend is absolutely right on every single count.

Oral Answers to Questions

Debate between Graham Stuart and Stephen Crabb

Thursday 5th March 2020 Commons Chamber

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The top source market of foreign direct investment projects coming into the UK continues to be the United States, by a considerable margin. Does that not underline the importance of Heathrow and of the transatlantic aviation route as an enabler of those deals? Will the Minister confirm that the Government are still committed to growth in that important market?

[Graham Stuart]

My right hon. Friend is correct to highlight the importance of Heathrow and transatlantic links with the US and beyond—not only for exports, but for foreign direct investment. I am sure that he and the rest of the House will be kept informed as Government policy develops.

Oral Answers to Questions

Debate between Graham Stuart and Stephen Crabb

Thursday 23rd January 2020 Commons Chamber

[Graham Stuart]

A day when the hon. Gentleman rises above party politics is one when we know a significant shift has occurred in the body politic, but I will try to take the question in the spirit in which it was intended. We are consulting and engaging widely, including with devolved areas of the country, to ensure we come up with exactly the right package to be able to assure even the most sceptical, albeit now non-party political people like the hon. Member, that free ports really can galvanise further job development and prosperity.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

It is important that this policy does not lead to market distortions and displacement of activity around ports. Does my hon. Friend agree that the key to making this a success is to build on the unique competencies and excellence of individual ports, such as the port of Milford Haven in my constituency, with its unique energy expertise?

[Graham Stuart]

My right hon. Friend is absolutely right. It is about tailoring the policy to the particular, ensuring we have something that does not lead to distortion but does lead to additional inward investment. We have gained more foreign direct investment in this country than any other European nation. That is one of the fundamental reasons why we have more people in work as a percentage of the population than the US, Germany or France, and why we have the lowest youth unemployment in our history. I am determined that the free port policy will be well-tailored to the individual circumstances of each area, while ensuring there is no distortion.