Net-zero Emissions

Debate between Lord Callanan and Lord Broers

Tuesday 7th December 2021 Lords Chamber

[Lord Broers (CB)]

My Lords, while complimenting the Minister and the Government on getting on with the SMR programme, I ask him whether sites are being sought for these reactors where the heat they produce can be used in district heating systems for buildings, industry and horticulture.

[Lord Callanan (Con)]

The noble Lord links together two important facets of this work: the importance of getting on with building new nuclear capacity, which I think is widely recognised, and the importance of developing heat networks. We do not have such a tradition of heat networks in this country, but they are rapidly expanding and we are investing hundreds of millions of pounds in future heat networks.

Advanced Research and Invention Agency Bill

Debate between Lord Callanan and Lord Broers

Committee stage
Wednesday 17th November 2021 Grand Committee

[Lord Broers (CB)]

I have just a word of disagreement on some of this. Short-termism has been our problem; we must keep the timescales long enough. If you keep pulling the plant up and looking at the roots, it will not grow. On the other hand, one thing that we should practise from the beginning is what is in Amendment 16 from the noble Lord, Lord Ravensdale. The one thing that technologists have made a mistake on in the last decade or two is not to bring social scientists in early, to really look at the implications of what their technology will do. I strongly support that amendment, but I have severe reservations about the others.

[Lord Callanan (Con)]

I thank noble Lords who have contributed. These amendments relate to ARIA’s annual report and to other information to be provided to Parliament. As set out in Schedule 1, ARIA’s accounts must be prepared annually, alongside an annual report, which it will send to the Secretary of State, who must lay the report in Parliament.

Addressing Amendment 11 first, I am happy to assure the noble Baroness that ARIA will be audited by the National Audit Office—and I reassure the noble Viscount, Lord Stansgate, on that as well. The point was also well made by my noble friend Lady Noakes that the National Audit Office will be able to conduct value-for-money examinations of ARIA; the National Audit Office never shows any reticence to do precisely that. Indeed, it is able to do that as per the National Audit Act 1983 in the usual way, and the same controls apply to many other public organisations. As some of my spending schemes, within my responsibility, have been subject to National Audit Office examinations, I can assure noble Lords that it is extremely rigorous, as indeed it should be.

Other amendments relate to the specific contents of ARIA’s annual report. I agree on the importance of robust transparency and reporting arrangements in this regard. That is why ARIA’s annual report will align with the Government Financial Reporting Manual, which, for example, could require ARIA to publish information on its aims and achievements, performance, organisational structure, corporate governance and accountability.

On the list of projects that was asked for in Amendment 12 by the noble Baroness, Lady Chapman, publishing a list of delivery partners is not one, in my view, for primary legislation. The details of the annual report will be part of the framework document and, of course, the annual accounts will provide details of exactly where ARIA spends its money.

Energy White Paper

Debate between Lord Callanan and Lord Broers

Wednesday 16th December 2020 Lords Chamber

[Lord Callanan (Con)]

My noble friend is right to point out the scale of the challenge. We are investing £240 million of capital co-investment in low-carbon hydrogen production, which was committed to in the spending review. That is just one of the measures that will support our ambition for five gigawatts by 2030. The hydrogen strategy package, planned for next year—I am sure my noble friend will follow it with great interest —will set out more details in this space, including how we intend to leverage private sector investment through business models to satisfy the demand he suggests.

[Lord Broers (CB) [V]]

My Lords, I congratulate the Government on the most realistic energy plan we have seen in recent years. It realises that in the generation of electricity it is essential to sustain nuclear power or CCUS to address the problem that renewables are intermittent. The many applications of batteries are included without making the mistake of proposing that they can back up renewables on a national scale. It also includes the important role that hydrogen can play in storage and as a fuel. However, although there are tens of graphs in the accompanying document showing what will be realised in many different circumstances, I was unable in the short time available to find some of the essential data underlying these calculations. Where can these be found? For example, how were the additional costs of CCUS and the total cost of renewables, including their back-up, derived?

[Lord Callanan (Con)]

The noble Lord asks some very pertinent questions on the back-up detail and some of the graphs provided in the White Paper. I think it would be a more productive use of the House’s time if I wrote to him with the details he requests.

World Energy Outlook 2020

Debate between Lord Callanan and Lord Broers

Tuesday 20th October 2020 Lords Chamber

[Lord Callanan (Con)]

I thank my noble friend for her question, but the WEO 2020 report suggests a 10% increase in nuclear between 2019 and 2030. Beyond 2030, the Paris compliance scenarios envisage small modular nuclear reactors taking a stronger role, alongside CCUS and hydrogen. Of course, we will address all these upcoming matters in the energy White Paper.

[Lord Broers (CB) [V]]

My Lords, the IEA outlook report points out that to achieve net zero in 2050 we need by 2030 to have 50% electric cars and 75% low- carbon electricity. These aggressive goals will be met only with international collaboration. It takes 50 times longer to charge an electric car than to fill a petrol car, requiring an immense number of charging points; at present too much carbon is released in making car batteries; and, to meet the 75% target, more nuclear power will be needed than is planned. Does the Minister think that there is a leadership role for the UK in achieving all of this?

[Lord Callanan (Con)]

Indeed there is—and we have taken a leadership role by setting our 2050 net-zero targets, by setting a phase-out date for petrol and diesel vehicles, and by introducing policies to incentivise the electric vehicle market. Accelerating the clean energy transition globally is the focus of our work going up to COP 26.