Advanced Modular Reactors: Criticality Tests

Debate between Lord Callanan and Lord Ravensdale

Tuesday 19th March 2024 Lords Chamber

[Lord Callanan (Con)]

I do not recognise the dates that the noble Lord cited. Great British Nuclear is obviously heavily ensconced in the design selection process at the moment, and I understand that, given a fair wind, the reactors should be online and producing electricity by the early 2030s.

[Lord Ravensdale (CB)]

My Lords, I declare my interests in the register. One reminder from the conflict in Ukraine is that energy security and national security are indivisible. The Government set out welcome guidance that Russian nuclear fuel imports into the UK will be banned by 2030, but it is a major national security issue to be relying on these imports for another six years. Does the Minister agree that we need to legislate to bring forward this date, as our partners and allies in the US are doing?

[Lord Callanan (Con)]

I understand the noble Lord’s concern, and I know the close interest he takes in this; I share his concerns. I know he had a very productive meeting with the Secretary of State and Minister Bowie to discuss these matters, and he has written following that. A letter on that is being drafted and will come to him shortly.

Electricity Network Connection Action Plan

Debate between Lord Callanan and Lord Ravensdale

Wednesday 22nd November 2023 Lords Chamber

[Lord Callanan (Con)]

I have a certain amount of sympathy with what my noble friend says, but the reality is that we need this new infrastructure and, unfortunately, it is not possible to say that no community will be affected. It is possible to bury power lines, of course, but it is up to 10 times more expensive and that cost will fall on the bill payer. As in many things, it is about getting the balance right.

[Lord Ravensdale (CB)]

My Lords, I declare my interests in the register. The future systems operator will be key to planning and rolling out network infra- structure. Now that we have the enabling legislation in place, can the Minister please update the House on the timescales and process for set-up of the future systems operator in the coming months, and the associated consultations?

[Lord Callanan (Con)]

The noble Lord is absolutely right: the FSO role is absolutely key, and we are progressing work on that as quickly as possible. It is really important to get it up and running, and relieve the responsibility from the national grid, which I think has had a number of conflicts of interest in this space.

Cement Industry: Carbon Dioxide

Debate between Lord Callanan and Lord Ravensdale

Wednesday 12th July 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a good point. We are exploring the role that demand-side policies could play in creating demand for low-carbon cement, or indeed less demand for cement. We recently concluded a consultation which sought feedback on proposals for low-carbon standards, and we will continue to pursue that.

[Lord Ravensdale (CB)]

My Lords, as well as CO₂ being produced as a by-product of the chemical reaction in cement production, the other main source of emissions is the high heat required: around 1,400 degrees centigrade or more. What work are the Government doing to support a road map for the development of electric kilns?

[Lord Callanan (Con)]

That is one of technologies we are looking at. We also gave £3.2 million to the Mineral Products Association to develop a low-carbon fuel mix for cement. It held a trial at Hanson’s Ribblesdale plant and Tarmac’s Tunstead plant using a mix of 100% net-zero fuels, including hydrogen.

Energy Bill [HL]

Debate between Lord Callanan and Lord Ravensdale

Report stage
Monday 17th April 2023 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Baroness, and we are supporting a number of community energy partnerships at the moment. As I say, we are not against the idea in principle, but we need to work through the proper policy implications and ensure that some of these very worthwhile schemes are not piggybacking on to the costs that everybody else pays into the system.

[Lord Ravensdale (CB)]

My Lords, I thank the Minister for providing that detail on the department’s approach to local area energy planning and for recognising the ongoing work. With the reassurance that has been provided by the Minister, I beg leave to withdraw my amendment.

Energy Bill [HL]

Debate between Lord Callanan and Lord Ravensdale

Report stage
Tuesday 28th March 2023 Lords Chamber

[Lord Callanan (Con)]

Because the other bodies do not have the responsibility for regulating the energy system. I do not see why that is so difficult for my noble friend to understand.

[Lord Ravensdale (CB)]

My Lords, to sum up my Amendments 1 and 136, the important part of the whole Bill for me is to bring into being the future system operator, which will be a key enabler for much of what we have been talking about today. In the end, it will provide advice to the Government, and it is the responsibility of the DESNZ to own the development of a plan for our future electricity-generating system.

The amendments proposed by the noble Baroness, Lady Hayman, and the noble Lord, Lord Lennie, align with what I am talking about around linking up the duty for Ofgem. They pointed out the links between it and the future system operator, and talked about making sure that it is coherent and that we think more strategically to reduce costs to the consumer in the long term.

Another important point is tackling long-term under- investment in the grid, as brought out by the noble Lord, Lord Teverson, and the noble Baroness, Lady Altmann. Alongside the increase in generating capacity that we require, there is just as much of a challenge in our grid infrastructure and ensuring that the grid connections are there to make use of that.

The Minister gave me some reassurance with the announcements that he said were due later this week on the energy system and on the electricity system in particular. I look forward to that event with great interest and, for now, beg leave to withdraw my amendment.

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[Lord Callanan (Con)]

My Lords, in moving Amendment 13, I will also speak to Amendments 58, 63, 75, 78, 79, 95 and 143 in my name.

Turning first to Amendments 58 and 143, I thank the noble Lord, Lord Ravensdale, for bringing forward his original amendment on the classification of nuclear-derived fuels in Committee. While we believe that we should not categorise nuclear-derived fuels as renewable, I have welcomed the constructive discussion with noble Lords since Committee, and, in response to that, the Government are pleased to bring to forward these amendments.

Amendment 58 will enable the renewable transport fuel obligation and the forthcoming sustainable aviation fuel mandate to support two types of low-carbon fuel, helping the UK to decarbonise transport further, thereby achieving, I think, the noble Lord’s objective. First, it will enable the support of recycled carbon fuels. These are produced from otherwise unrecyclable waste plastics or industrial waste gases that cannot be avoided, reused or recycled. Secondly, it extends support to fuels derived from nuclear energy. Both fuel types have the potential to deliver significant carbon savings over traditional fossil fuels and are a vital replacement for sectors that are difficult to decarbonise, such as commercial aviation and heavy goods vehicles. Amendment 143 sets the timing on which the power comes into force at two months after Royal Assent.

I turn now to Amendment 95, which relates to Part 8 on the regulation of energy smart appliances, specifically under Clause 191, which deals with how energy smart regulations will be enforced. It will enable the regulator to agree an enforcement undertaking with an economic actor, where appropriate, and, if required, it will still issue a penalty on a separate non-compliance issue to the same economic actor. The ability to agree an enforcement undertaking with a business is a useful tool for a regulator. It allows it to work with a business to bring it into compliance without the need for potentially harsher penalties. This will be particularly important in the regulation of energy smart appliances, which is a nascent and evolving market at the moment. Should other, unrelated instances of non-compliance arise while an enforcement undertaking is in place, the regulator still has the power to issue a penalty. The amendment will put that ability beyond any doubt by clarifying that the regulator can issue a penalty against a business with which it has agreed an enforcement undertaking, providing that the two relate to separate issues. The amendment will help to enable the implementation of a consistent and fair enforcement regime for the energy smart appliances market.

Amendments 13 and 63 simply take account of the Energy Prices Act 2022, which has been passed since the Bill was introduced.

Amendments 75, 78 and 79 are minor and technical amendments relating to Schedule 16 on heat networks regulation. Amendment 75 corrects an error in relation to installation and maintenance licences for heat networks by removing the reference to Scotland, where the licensing regime will not apply. The licensing regime will apply in England and Wales, and the Northern Ireland Executive will have powers to introduce an equivalent regime. The regime will not apply in Scotland, as the Scottish Government, I am told, will introduce their own regime.

Amendment 78 simply corrects a typographical error in paragraph 40 of Schedule 16, replacing a reference to “a penalty” with “compensation”.

Finally, Part 9 of the schedule provides for regulations introducing a special administration regime for the heat network sector. It provides for the appropriate authority to modify existing legislation relating to the special administration regime for energy companies to allow for the equivalent introduction of an energy regime for heat networks. Amendment 79 provides a definition of the appropriate authority for paragraph 50 of the schedule, to match the definition in paragraph 61 of that schedule. The appropriate authority in this case is defined as the Secretary of State for England and Wales and Scotland, and the Department for the Economy in Northern Ireland. I beg to move.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Amendment 58, to which I have added my name. First, I thank the Minister for his constructive approach, and for listening to my amendments in Committee and responding by introducing this amendment, which addresses all of the points in my Committee amendments. I am most grateful. I must also thank his officials for the work that they have put into drafting and finding an acceptable way forward, and for engaging with me throughout the process. I also thank the noble Baroness, Lady Worthington for her support throughout.

I break down the benefits of this amendment into three broad areas. First, it continues the work that the Government are doing to create a level playing field for low-carbon technologies. We heard the welcome news in the recent Budget Statement that nuclear will be considered as environmentally sustainable, or taxonomy aligned, under the UK green taxonomy. In a similar vein, the renewable transport fuels obligation amendment will allow nuclear to benefit from a subsidy scheme that is already available to renewable operators. This sends a clear message to investors that the Government sit squarely behind nuclear as an environmentally sustainable energy source. It also brings out the important principle of technological independence—to let the market do its job to find the most efficient solutions, but also because for net zero we need to throw the kitchen sink at the problem, if we are going to achieve it.

Secondly, the amendment directly enables a whole range of near-term projects that will help to kick-start the green hydrogen and recycled carbon fuel industries within the UK. With recycled carbon fuels, there are a number of industrial projects being scoped that will be enabled by this amendment—for example, Project Dragon, to use industrial waste gases from Port Talbot to produce ethanol from which recycled carbon fuels, including sustainable aviation fuels, can be derived. By setting strict rules for how to account for emissions, savings of around 70% can be generated when compared with the baseline of using fossil fuels. Those projects, enabled by this amendment, will be an important enabler for decarbonising transport fuels and moving towards a circular economy, saving significant amounts of greenhouse gas emissions in future.

For nuclear, there are near-term plans to produce hydrogen from Sizewell B for use in Sizewell C construction, and also in other nuclear projects, including SMRs and AMRs. Particular economic benefits may be gained through using nuclear power to produce hydrogen—for example, high temperature electrolysis, using heat from the nuclear reaction to produce hydrogen much more efficiently than cold electrolysis. Further down the line, using the heat from high temperature reactors to produce hydrogen directly through the sulfur-iodine cycle has the potential to increase efficiency further beyond traditional electrolysis techniques. If the Government are to meet their ambitious hydrogen production targets, nuclear needs to be part of the picture, which will be enabled by this amendment and help kick- start green, or pink, hydrogen production—I sometimes lose track of the colours—in the UK.

Thirdly, the amendment enables these fuel sources to be eligible for the sustainable aviation fuels, or SAF, mandate. Both recycled carbon fuels and nuclear will have a key role to play here. RCF has the potential to produce large volumes of SAF in the near term; in the longer term, the combination of direct air capture and hydrogen production from nuclear could allow power-to-liquid sustainable aviation fuel to be produced economically.

As I said, I am very grateful to the Minister and his officials for working together to make this important change to the Bill.

Energy Bill [HL]

Debate between Lord Callanan and Lord Ravensdale

Committee stage
Monday 19th December 2022 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the Committee will note the large number of amendments tabled in my name on heat networks. These amendments are needed to ensure that Ofgem can operate effectively as the heat networks regulator. A large proportion of them ensure that Ofgem’s enforcement powers will replicate those that it has as gas and electricity regulator. These amendments also ensure that the Bill reflects the approach to regulation which the Government committed to in their response to the heat networks market framework public consultation. The majority of these amendments are minor and technical in nature. Some are a little more substantial, and I will address those first.

Amendments 162C and 162YYI will ensure that any price cap introduced through regulations in future can apply to non-domestic as well as domestic heat network consumers. They also widen the scope of the regulator’s power to conduct pricing investigations into instances where non-domestic heat network consumers are receiving disproportionately high prices.

The Government are committed to introducing consumer protection rules that ensure that heat network consumers receive a fair price for their heating. Regulations under the Bill will provide Ofgem with powers to investigate and intervene where consumer prices appear disproportionate, compared with heat networks with similar characteristics or compared with alternative and comparable heating systems.

Non-domestic heat network consumers, particularly micro-businesses, can be vulnerable to receiving disproportionately high prices from heat suppliers. We therefore consider it appropriate to make this amendment so that the regulator’s price investigation powers extend to non-domestic consumers, in addition to domestic consumers. The Bill also provides the Secretary of State with powers to introduce various forms of price regulation, including a price cap, should it be necessary to protect consumers while growing and decarbonising the market.

The Government have committed to using any future powers to set price caps cautiously to avoid undermining investment in this nascent sector and putting at risk the supply of heating to consumers. Should a price cap be appropriate in future, we want to ensure that it could apply to both domestic and non-domestic consumers. In particular, we found in our public consultation in 2020 that micro-businesses supplied by heat networks share similar characteristics with domestic consumers. We therefore consider that these two consumer groups should have similar protections. This amendment would enable any future price cap to also apply to non-domestic consumers such as micro-businesses.

Amendments 162YYV to 162YYY serve to ensure that the full extent of heat network regulatory activities performed by Ofgem in Great Britain, the Utility Regulator in Northern Ireland, consumer advocacy bodies and other entities are funded by heat networks and holders of gas or electricity licences. Last year, the Government ran a public consultation on a mechanism for recovering the costs of heat network regulation. The nascent state of the sector and small consumer base means that recovering these costs solely from heat networks would amount to an extra £10 or more on each heat network consumer bill per year. This would be too high and create risks to the competitiveness of the market and, of course, issues of affordability for heat network consumers.

The Government consulted on heat network, gas and electricity regulatory costs being spread evenly across heat network, gas and electricity consumers in Great Britain. The Government have estimated that this approach would amount to less than £2 added to each heat network consumer bill per year, and an additional 10p per gas and electricity consumer bill per year. Most consultation respondents agreed that this approach was the fairest and crucial to supporting the growth of the heat networks sector. The Northern Ireland Executive conducted an equivalent public consultation for cost recovery in Northern Ireland and determined this a desirable approach.

This amendment sets out for transparency purposes the full extent of the regulatory activities in scope of this approach to cost recovery. The amendment also includes Ofgem’s role as a licensing authority under the Heat Networks (Scotland) Act 2021 in the cost-recovery regime. The Scottish Government passed this Act to introduce their own heat networks regulatory framework. By ensuring a funding route for Ofgem to perform this role, the Government are helping to ensure that Scottish heat network consumers receive robust protections and that heat networks regulation is coherent across Great Britain.

The remaining amendments are minor and technical, so I will not detain your Lordships for too long with them. In summary, these amendments, first, ensure that the provisions relating to heat networks regulation are accurate; secondly, allow for regulations and authorisation conditions to be made about the connection of premises to a heat network; and, thirdly, relate to Ofgem and the Utility Regulator in their role as heat networks regulator in Great Britain and Northern Ireland respectively.

I hope, therefore, that noble Lords will agree that these amendments are necessary to enable a fair and consistent heat network market across the United Kingdom. The one non-government amendment in this group is in the name of the noble Baroness, Lady Worthington. I thank her for her thoughtful contributions—actually, I should do that at the end, after she has spoken. Oh, she is not here. I beg to move Amendment 161AA.

[Lord Ravensdale (CB)]

My Lords, first, I declare my interests as a project director working in the energy industry for Atkins and as a director of Peers for the Planet. I will speak to Amendment 162 in the name of the noble Baroness, Lady Worthington, who cannot be here today.

To give some context to this amendment, I welcome paragraph 14(3) of Schedule 15, in that it provides for all the conditions which may be attached to a heat network authorisation. All of this is welcome—in particular, paragraph 14(3)(f) refers to

“conditions about limiting emissions of targeted greenhouse gases in relation to relevant heat networks”.

However, it is noteworthy that the schedule does not include any conditions about the actual heat source for the emissions, and that is what Amendment 162 focuses on. It is a probing amendment, seeking to determine whether the Secretary of State or Ofgem already have the power to control the heat source using the heat networks and whether they are minded to use them.

There are some fuels which it may be in the public interest to restrict using in a heat network. For example, the UK Government are currently establishing carefully controlled trials for hydrogen for heating. Presumably, the Government would not want to be powerless to prevent a heat network provider using green hydrogen for heating if they had concerns about, for example, safety or the cost effectiveness of hydrogen as a power source. If the hydrogen trials are not taken forward, the Government may not want someone to use hydrogen in a heat network without effective oversight from Ofgem.

In another example, it may be appropriate to restrict the use of biomass, which is ostensibly low or zero-carbon. However, the Minister will have heard concerns from the noble Baroness, Lady Boycott, and other Peers last week, and there are concerns about whether the Government would have the powers to restrict biomass for local heat networks to the sustainable practices the Minister outlined in his response to that question. Can the Minister confirm in his summing up whether the Government have powers to restrict the source of heat input as applied to heat networks? If so, where? If not, would he consider taking these powers?

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[Lord Callanan (Con)]

No specific boundary is set out in the proposals. It can vary from authority to authority. It is very unlikely to be a whole region; it is much more likely to be an inner-city area, an industrial estate or something like that. It will very much depend on the local circumstances and what heating sources are available. Crucially, it will depend on local support, which is why local authorities are crucial to this process. Many local authorities around the country are already in discussions and are very keen to get on with these zoning proposals, presumably including Leeds. Although I know that the noble Baroness, Lady Blake, does not speak for Leeds any more, I know that it is one of the pioneers in this area.

[Lord Ravensdale (CB)]

I thank the Minister for his response. He set out the reasons why district heating is particularly well suited to a zoning approach. Could he expand a little on why, for example, heat pumps or urgent retrofits are not suitable for zoning in the same way?

[Lord Callanan (Con)]

They could be, but we do not want to designate a particular technology because it will vary from area to area and locality to locality. It is to be expected that heat pumps will play a part in heat network zoning. That would be the case but we do not want to be particularly specific.

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[Lord Callanan (Con)]

As I said, we are supportive of proposals. We accept the target for decarbonising electricity production and we are moving ahead full-scale with our sails erected—which is no doubt a Borisonian term—towards that goal. Community energy will play probably a small role, but it will play a role. Obviously, larger-scale generators will supply the majority of the nation’s electricity.

[Lord Ravensdale (CB)]

My Lords, I thank all noble Lords for participating in this very informative debate. I was very encouraged by what the Minister had to say in response to my Amendment 168 and the work already ongoing in government. I come back to the fragmented nature of local area energy plans: some local authorities have the resources and others perhaps do not. I look forward to fleshing out the detail on that as we go towards Report.

The noble Lord, Lord Teverson, and the noble Baroness, Lady Blake, put it really well. The key theme running through all this is the participation of local authorities and local groups in our energy transition and about defining the part they have to play. We have these big, top-down targets—50 gigawatts of offshore wind by 2030 and 24 gigawatts of nuclear by 2050, as well as heating targets—which are all of course very necessary. But we need that bottom-up view and a better definition of the role of local authorities and local groups in supporting this huge engineering challenge, and I say that as an engineer. It is about stitching together all that local data to better inform how we respond nationally. I look forward to further discussions leading up to Report but, with that, I beg leave to withdraw my amendment.

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[Lord Callanan (Con)]

I disagree with the noble Lord. I have had many discussions with businesses and companies in this area, and we are providing the policy certainty they need. It is clear what direction the country is going in. We have listened to a lot of the feedback, have set out longer delivery programmes for the various schemes that we fund directly and are giving the certainty that people need. It does not make any difference to the industry, in terms of the policy landscape, to enshrine a target in primary legislation as opposed to it being an aspiration, a target or whatever other language the noble Lord prefers.

[Lord Ravensdale (CB)]

My Lords, I have listened to everything the Minister said in response and, as I said earlier, it is great that the Government are moving strongly on this and all these matters, particularly skills and many other areas. However, there is still a need for a joined-up strategy and for some of these targets to be in statute. We have learned from the green homes grant, for which one of the issues was the lack of the long-term thinking that a strategy would provide.

The real issue here, as noble Lords have powerfully articulated, is that we have picked all the low-hanging fruit—the decarbonisation of our electricity system, and vehicle and transport electrification—and now we have to move much higher up the tree to more difficult matters, such as the decarbonisation of heat. The noble Lord, Lord Foster, powerfully articulated the challenges in that area. We will have many more discussions on this leading to Report but, with that, I beg leave to withdraw the amendment.

Small Modular Nuclear Reactors

Debate between Lord Callanan and Lord Ravensdale

Tuesday 28th June 2022 Lords Chamber

[Lord Callanan (Con)]

I cannot confirm any individual projects, but I have said that we are proceeding with making final investment decisions in the next Parliament on two further nuclear reactors.

[Lord Ravensdale (CB)]

My Lords, I work in the nuclear industry and one of the biggest issues I am currently seeing is a lack of available skills to undertake the work. We are doing our best to recruit, but we simply cannot find the skilled engineers to meet the demand we are seeing. Does the Minister agree that a sector-wide skills strategy is needed to demonstrate how we will deliver the more than 100,000 new jobs in the industry that will be needed by 2030?

[Lord Callanan (Con)]

The noble Lord makes an important point. There are a lot of very skilled engineering jobs. We have made some errors in the past on our nuclear strategy, which resulted in a lot of very skilled employees leaving the country and the industry effectively closing down. We are resurrecting the industry now and it will be a longer-term process to build up the skills base, but the noble Lord is right.

Net-zero Emissions

Debate between Lord Callanan and Lord Ravensdale

Tuesday 7th December 2021 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and in so doing declare my interest as a director of Peers for the Planet.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, to meet net zero, virtually all heat in buildings will need to be decarbonised. The net-zero strategy outlines that we expect that emissions could fall by between 25% and 37% by 2030 and 47% to 62% by 2035 compared with 2019 levels, based on an indicative heat and buildings pathway. The heat and buildings strategy shows our robust plans to do so.

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[Lord Ravensdale (CB)]

I thank the Minister for that response. Although I welcome the heat and buildings strategy, including the clear focus on heat pumps, it was silent on embodied carbon, which forms a large proportion of emissions from the built environment— 50 million tonnes in CO₂ equivalents a year, equivalent to aviation and shipping combined—so there is a strong case to report and regulate. Can the Minister say what plans the Government have towards mandatory reporting of carbon emissions in the built environment, along with regulating to limit carbon emissions in construction projects?

[Lord Callanan (Con)]

The noble Lord makes a very good point. We need to look at embodied carbon much more closely. Indeed, I attended and launched a session on exactly that at the COP climate change talks. We will work with industry practitioners to see what more we can do in this important area.

Hydrogen Economy

Debate between Lord Callanan and Lord Ravensdale

Monday 19th July 2021 Lords Chamber

[Lord Callanan (Con)]

There are a number of demonstration projects around the world on CCS, but we need to demonstrate it at scale and, as the noble Baroness will be aware, we will shortly be announcing our first CCUS clusters in the UK.

[Lord Ravensdale (CB)]

My Lords, I declare my interests, as in the register. Many industry responses to the recent consultation on the renewable transport fuels obligation suggested that green fuels, such as hydrogen, produced using nuclear energy should be eligible for this scheme to help the UK meet its targets. Can the Minister confirm what further engagements the Government will hold with industry to make a decision on the role of nuclear energy in the RTFO, and when they will make a final decision?

[Lord Callanan (Con)]

We believe that nuclear will have a role in low-carbon hydrogen production in future. The details of the hydrogen business model will be set out in the forthcoming strategy. At this stage, our aim is to remain technology-neutral. As the noble Lord indicated, under the existing RTFO, the hydrogen must be produced from renewable energy to be eligible. Changing that would require primary legislation.

Global Navigation Satellite System

Debate between Lord Callanan and Lord Ravensdale

Wednesday 10th March 2021 Lords Chamber

[Lord Callanan (Con)]

I answered the point about OneWeb in the previous answer. That is not the rationale for our purchase of OneWeb. PNT services from space underpin all 13 critical national infrastructure sectors, including national security, defence and transport. They are an important component of future technologies such as autonomous vehicles, smart cities and so on, so it is essential that we have our own autonomous capability.

[Lord Ravensdale (CB)]

My Lords, there is increasing concern from the scientific community about the impact of large satellite constellations upon astronomical observations. What work is being done to address this aspect of the OneWeb constellation? Specifically, what measures are being considered in the satellite design and operation to reduce its albedo?

[Lord Callanan (Con)]

The noble Lord makes an important point. OneWeb has met the Royal Astronomical Society to discuss the potential impact of its operations on astronomy. We will continue to support that dialogue and wider engagement with the scientific community.

Green Economic Recovery

Debate between Lord Callanan and Lord Ravensdale

Monday 14th December 2020 Lords Chamber

[Lord Callanan (Con)]

I thank the noble Baroness for her question. She is quite right, of course: the farming community has had a very difficult year, as have many other industries. Where possible, we should all buy local freshly produced produce.

[Lord Ravensdale (CB)]

My Lords, I declare my interests in the register. The voice of the regions will be key to our green economic recovery. The Midlands Engine’s green growth conversation aims to bring together key players in the energy sector, including local authorities, LEPs, businesses and academics to create a regional action plan. What plans do the Government have to interact with such initiatives and support existing regional strengths to enable a clean economic recovery?

Fossil Fuels: Business

Debate between Lord Callanan and Lord Ravensdale

Thursday 19th November 2020 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes an extremely good point: we want to be a world leader in carbon capture usage and storage technologies. He will have noted the announcement of an extra £200 million to add to the £800 million already committed in the plan, for a total of £1 billion in this world-leading technology.

[Lord Ravensdale (CB) [V]]

My Lords, I declare my interests as in the register. I very much welcome the Government’s ambition for London to become the global centre of green finance and the announcement by the Task Force on Climate-related Financial Disclosures last week. Have the Government considered legislating to mandate financial institutions to align portfolios to net zero, as a way to incentivise fossil-fuel-intensive businesses to accelerate their moves towards this goal?

[Lord Callanan (Con)]

As the noble Lord referenced in his question, we are mandating climate information in financial disclosures. We welcome other commitments from the many banks and financial institutions that are already joining us on the path to net zero.

World Energy Outlook 2020

Debate between Lord Callanan and Lord Ravensdale

Tuesday 20th October 2020 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, in asking this Question I declare my interests as recorded in the register.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

The World Energy Outlook 2020 report examines how the global energy system could develop under different scenarios in the coming decades. We welcome its focus on the impact of the pandemic and the choices needed to enable a sustainable recovery. We also welcome the focus on the path to reaching global net-zero emissions. We will continue to draw on the analysis as we work to accelerate the global energy transition, including through COP 26.

[Lord Ravensdale (CB)]

My Lords, I thank the Minister for that response. The report recommends faster structural changes and the need for Governments to take decisive actions to accelerate clean-energy transitions, particularly over the next decade. First, can the Minister give any indication of when we can expect the transport decarbonisation plan and the buildings and heat strategy? Secondly, we have been promised an energy White Paper this autumn. I noted the thickening autumn leaves as I walked to Parliament today, so can he reassure the House that the energy White Paper will be with us before the end of November?

[Lord Callanan (Con)]

My Lords, I am sorry to disappoint the noble Lord. I cannot give him a specific answer to that, but we expect the White Paper to come shortly.

Rolls-Royce

Debate between Lord Callanan and Lord Ravensdale

Wednesday 14th October 2020 Lords Chamber

[Lord Callanan (Con)]

I congratulate the noble Lord on getting the Royal Navy, a matter close to his heart, into his question again. But to be serious, I agree that we need to develop the next generation of small modular reactors, and we are providing support to enable that to happen.

[Lord Ravensdale (CB) [V]]

My Lords, I declare my interest as in the register. The East Midlands, where Rolls-Royce has its headquarters, has the lowest public sector research and development spend in the UK, at £83 per head. R&D and the skilled jobs that it generates are essential to the levelling-up agenda. What plans do the Government have to increase R&D spend in the Midlands, making the most of its strengths in the rail, aerospace, nuclear and other vital sectors?

[Lord Callanan (Con)]

We are happy to support good R&D projects. Rolls-Royce is a major beneficiary of our R&D support operations through the £1.95 billion Aerospace Technology Institute programme. It is also one of our largest UK investors in R&D.

Energy White Paper

Debate between Lord Callanan and Lord Ravensdale

Monday 28th September 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness makes a very good point. As I am sure she is aware, we have created a carbon capture and storage infrastructure fund of at least £800 million to establish at least two UK sites—one by the mid-2020s and the other by 2030—and £500 million to help energy-intensive industries to move to low-carbon techniques and decarbonise carbon-intensive regions such as Humberside.

[Lord Ravensdale (CB)]

My Lords, I declare my interests as in the register. Given that we are unlikely to achieve net zero without nuclear power, which is critical to the security of thousands of jobs across the regions, I am concerned that the White Paper will contain only a broad outline of the strategy for new nuclear. Will it set out in detail clear guidance on financing, for example a commitment to a RAB model, to give the sector the clarity it needs to progress?

[Lord Callanan (Con)]

The White Paper will look at the whole system of energy within the UK as part of our commitment to net-zero carbon emissions by 2050. I reaffirm the key role that nuclear will play as part of that future energy mix. I can tell the noble Lord that we will respond to the RAB consultation in due course.

Energy: Hydrogen

Debate between Lord Callanan and Lord Ravensdale

Thursday 17th September 2020 Lords Chamber

[Lord Callanan (Con)]

The Hydrogen Advisory Council has already been established and is meeting. My noble friend is entirely correct that hydrogen will play a key role in our decarbonisation efforts. We will want to set that out fully before the COP in 2021.

[Lord Ravensdale (CB) [V]]

My Lords, I declare my interests as in the register. Currently the major basis for hydrogen production, as other noble Lords have said, is steam methane reforming, of which CO₂ is a by-product. It requires the successful deployment of CCS, which is a high risk from an engineering and commercial perspective. Does the Minister agree that a drive in research and development towards non-methane reforming sources of production needs to be a major priority?

[Lord Callanan (Con)]

I agree that we need to look at all available technologies for the production of hydrogen, whether blue or green, including electrolysis and other methods. It will be a key fuel for our decarbonisation efforts and we need to consider all available technologies.

Renewable Energy

Debate between Lord Callanan and Lord Ravensdale

Tuesday 15th September 2020 Lords Chamber

[Lord Ravensdale]

To ask Her Majesty’s Government what assessment they have made of the updated recommendations from the National Infrastructure Commission that the United Kingdom should aim to meet two-thirds of its electricity needs using renewable energy sources by 2030.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we welcome the recent NIC report and will consider its recommendations. The Government are committed to reaching net zero through a sustainable, diverse and resilient energy system. This will require significantly increased renewables deployment. Renewables are on track to deliver the majority of electricity by 2030, having reached nearly 50% in the first quarter of this year. The energy White Paper will set out plans to further accelerate renewables deployment.

[Lord Ravensdale (CB)]

I declare my interests, as set out in the register. I thank the Minister for that response. Given the NIC’s findings that increased earlier investment in renewables can be delivered at the same overall cost, meeting half only of total demand by 2030, and will not increase costs for consumers, can the Minister give assurances that the Government will prioritise investment in the UK’s world-leading renewables sector in the forthcoming spending review?

[Lord Callanan (Con)]

The noble Lord will understand that the spending review is of course a matter for the Treasury and that I cannot comment ahead of its decisions. However, we are prioritising investment in the renewables sector. We are accelerating new capacity through the contracts for difference scheme, which gives us certainty to drive private sector investment and has been very successful in driving down costs.

Environmental Projects

Debate between Lord Callanan and Lord Ravensdale

Thursday 2nd July 2020 Lords Chamber

[Lord Callanan]

I welcome my noble friend back to the Chamber. I agree with her that we are committed to building back better and greener. I am sure the overseas territories will have an important role to play in that, and of course we will consider requests for funding from them.

[Lord Ravensdale (CB) [V]]

My Lords, while the establishment of a Cabinet committee on climate change is welcome, we need to do more to embed climate consideration in policy-making across government and consider the systems nature of net-zero delivery. Will the Government consider establishing a cross-departmental body to oversee the delivery of net zero and mitigate the siloed thinking inherent in individual departmental responsibilities?

[Lord Callanan]

The noble Lord is correct: the net-zero challenge is fundamentally cross-cutting. That is why in the run-up to the COP 26 summit we will bring forward ambitious plans across key sectors of the economy, including an energy White Paper, a transport decarbonisation plan and a heat and building strategy. We need to avoid siloed thinking in government across these endeavours.