Energy BILL [ Lords ] (Sixth sitting)
Debate between Alan Whitehead and Callum McCaig(8 years, 10 months ago)
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Callum McCaig
The future of carbon capture and storage became a lot more opaque following the Government’s decision just after the autumn spending review to scrap the £1 billion of funding for the competition to deploy CCS at Peterhead and White Rose. That has caused a not unsubstantial amount of consternation within the nascent CCS industry, which thought it had a clear path to developing a viable proposal that would enable the industry to get off its feet, with support from the Government to develop something that would be to the advantage of British industry and have the potential, according to the Committee on Climate Change, to deliver the carbon reduction targets in a cost-effective manner. That decision has been made, and however regrettable it is, we are where we are.
The new clause calls on the Government to bring forward a strategy in conjunction with relevant Departments and, importantly, the devolved Administrations. I know the Scottish Government have worked closely with industry and indeed the Department of Energy and Climate Change on the phase 2 projects, including joint funding of research into the proposals on Grangemouth. That proposal was important. As for the timing, June 2017 may seem a little far away, but I think that timescale is required, given where we will be by the time the Bill becomes an Act. Considerable discussions will be required—ideally at the next carbon budget—to establish what the UK Government are going to do on carbon reduction as a whole, and in particular to allow a CCS strategy to be developed appropriately. I see no reason why we should not all wish to do that, and I urge hon. Members to support the new clause.
Dr Alan Whitehead (Southampton, Test) (Lab)
I rise to speak to new clause 10. Hon. Members may observe that new clause 10 is remarkably similar to new clause 4; alternatively, one could say that new clause 4 is remarkably similar to new clause 10—it depends on one’s point of view.
We hope to see a comprehensive carbon capture and storage strategy developed to put in place the various structures and arrangements necessary to enhance the CCS industry and open the possibility of development over the next 20 years. As the hon. Member for Aberdeen South mentioned, the abrupt ending of the CCS pilots in Peterhead and White Rose, with very little notice, forms a sad background. It was widely assumed that not only was it the end of those two pilots, but carbon capture and storage was dead. I would argue that that is certainly not the case. Notwithstanding the ending of those pilots, it is vital that we make solid progress toward making carbon capture and storage a central part of our energy strategies for the future, particularly up to 2050.
The Committee has discussed how the North sea might play a role in that strategy. At the storage end of carbon capture and storage, not only could the North sea provide a storage facility for some schemes in the UK, but it has the capacity to accommodate easily substantial deployment of CCS across the UK and Europe; in fact, it could be a world-class carbon repository. We have also discussed how best to ensure that decommissioning in the North sea is undertaken with due regard to what carbon capture and storage might require in the future. I observe that several sentences relating to carbon capture and storage that were inserted in the Bill in another place have not been removed by the Government in the Commons, so I imagine they will remain in the Bill as it completes its stages in both Houses of Parliament. There are therefore elements in the Bill already that suggest a requirement for greater strategy where CCS is concerned.
In addition to our commitment to the strategy, I suggest that Government Members should support it, given its appearance in that apparently flexible friend, the Conservative manifesto. My hon. Friend the Member for Norwich South said in a previous sitting that we should look very carefully at the wording of the manifesto and immediately do whatever it says about the future of wind, particularly onshore wind, and I imagine that Conservative Members are keen to do the same for other elements of their party manifesto. The manifesto stated that the Government would support carbon capture and storage by putting £1 billion into a pilot project, but that has not really been carried out yet. I imagine that Conservative Members want to make up for that bump in the road—the Government’s failure to deliver on that part of the manifesto—by ensuring that the manifesto’s wider commitment to carbon capture and storage is fulfilled. That strongly implies that the Government need to set out a proper CCS strategy.
Climate Change
Debate between Alan Whitehead and Callum McCaig
Callum McCaig
The figures I have seen are £82.50 as opposed to £92.50, but if I am wrong about that—I will check it—I will be more than happy to withdraw that statement. I do not believe that nuclear is safe or that it is an appropriate part of the energy mix.
Dr Whitehead
If the hon. Member for Warrington South (David Mowat) looked closely at the difference in the strike prices for Hinkley nuclear and for onshore wind, he would see that the years over which the price is given are quite different—it is twice as long for Hinkley as for onshore wind. The hon. Member for Warrington South, rather than the hon. Member for Aberdeen South (Callum McCaig), is misleading the House.
Dr Whitehead
I am sorry, Madam Deputy Speaker. May I apologise for the inadvertent omission of the word “inadvertent”?
Callum McCaig
I am not entirely sure where to go with that, Madam Deputy Speaker, in case I get into trouble. I do not know whether to say that the hon. Member for Southampton, Test (Dr Whitehead) is correct, but I agree with him on this: my understanding is that the deal for the new nuclear power station is over twice as long a period as that on offer to anything in the renewables sector. I do not believe that nuclear is safe, and I believe that there are other ways. On providing that base-load, I would rather see thermal generation, but with carbon capture and storage built in as standard.
As I was saying, we have a short window of time and we require action. This is a welcome debate, I look forward to hearing more about this issue and I hope that in future we will recognise the contributions of Scotland and the other devolved Administrations, and the part they play in the UK’s achieving what is required.