Oral Answers to Questions

Alex Cunningham Excerpts

Tuesday 16th January 2024 Commons Chamber

[Graham Stuart]

Effectively, we are part of a European market. Most of the gas that we produce is consumed in the United Kingdom, and most of our oil is refined elsewhere in Europe and contributes to European and UK energy security, as it is converted into product. It is one joined-up market for historical reasons, and our refineries are used predominantly for oil that comes from abroad, as opposed to that which comes from the North sea. These are multi-decadal investments, and as part of a managed decline in demand we will see refinery capacity reduced over time. We are doing absolutely everything to do this in the most sensible manner possible, and it is a shame that Labour Members would have us import more. They are all in favour of oil and gas jobs, so long as they are not in the UK, and they will bring in foreign imports from which we will get no jobs and no tax, with higher emissions. It makes no sense, and only the right hon. Member for Doncaster North (Edward Miliband) could champion such an insane policy.

[Alex Cunningham (Stockton North) (Lab)]

12. What steps her Department is taking to help energy-intensive industries to decarbonise.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)]

As chair of the all-party group on carbon capture, utilisation and storage, the hon. Member will know that the Government have committed £20 billion to support the early development of carbon capture, usage and storage, and up to £500 million for the industrial energy transformation fund to help industry to decarbonise, with phase 3 opening shortly.

[Alex Cunningham]

I welcome the investment in carbon capture—we just need to get on and make something happen there. Teesside is home to some of the most energy-intensive industries in the country, but instead of attracting more of those industries, including primary steel making, we are seeing plants closed down and jobs lost because investors do not see any industrial strategy from the Government. High energy costs mean that it is cheaper to import many of the goods that until now we have made at home. Why are the Government content to see this managed decline, rather than back the kind of strategy that will protect existing industries and drive investment and job creation?

Oral Answers to Questions

Alex Cunningham Excerpts

Tuesday 28th November 2023 Commons Chamber

[Amanda Solloway]

As I stated, the alternative fund was an incredible support and provided households with that support. The Government lent in to try to ensure that everyone who was entitled to the funding was able to receive it. Now that the scheme has closed, the money will return to His Majesty’s Treasury.

[Alex Cunningham (Stockton North) (Lab)]

14. What steps her Department is taking to help energy-intensive industries to decarbonise.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

22. What steps her Department is taking to help energy-intensive industries to decarbonise.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The Government have committed £20 billion to support early development of CCUS—carbon capture, usage and storage—and £500 million to the industrial energy transformation fund to help industry to decarbonise, with phase 3 expected to open for applications in early 2024.

[Alex Cunningham]

We are still waiting for a lot of that to happen. The Tees Valley hosts a huge number of energy-intensive industries, but we have lost many of them over the years—a few years ago it was steelmaking, but more recently we saw the demise of the Cleveland Bridge & Engineering Company at Darlington, which built the Sydney harbour bridge. The last ammonia manufacturing plant in the country, that of CF Fertilisers, closed its doors this year, as did Mitsubishi’s Cassel works, with both citing that their energy costs were way higher than those of their European and American competitors. What are Ministers going to do to ensure that we do not have any more closures as a result of their policy failures?

[Andrew Bowie]

It is a shame that the hon. Gentleman could not find it within himself to congratulate Mayor Ben Houchen on all the work he is doing to bring steelmaking back to the Tees Valley for the first time in a generation. The Government are engaging with the steel industry on a sustainable future, as announced on 15 September. Tata Steel expects to invest £1.25 billion, including a UK Government grant worth up to £500 million, in a new electric arc furnace. Frankly, the hon. Gentleman should start talking up the Tees Valley.

Net Zero by 2050

Alex Cunningham Excerpts

Monday 16th October 2023 Commons Chamber

[Claire Coutinho]

I completely agree with my hon. Friend’s points about the grid. Every single person in the sector I have spoken to has said that the announcements we have made about the grid are the most important made to date. In terms of electric vehicles, if the prices get to a point where families want to adopt them, they will do so. Nothing in our policy stops them. On domestic heating, it is right that we have taken some space for households that would not be suitable for such technology. He is right to welcome the uplift on the boiler upgrade grant. I have spoken to providers such as Octopus, which has said that it has seen a fivefold increase in inquiries since we announced the policy.

[Alex Cunningham (Stockton North) (Lab)]

It was clear from talking to industrialists about net zero and carbon capture last week that they were exasperated with the Government’s start-stop approach to business, the snail’s pace of decisions and, of course, the lack of clarity. The Chemical Industries Association has reported declining production and said that domestic demand remains low. It needs CCUS, its fellow industrialists need CCUS and net zero needs CCUS. When will we get some final decisions, or are those initiatives also under threat?

[Claire Coutinho]

The hon. Gentleman is absolutely right to articulate the potential of carbon capture and storage. Earlier in the year, we set out the £20 billion package—a large package by international standards. We have set out some progress, and we are working at pace to ensure that we can set out more later in the year. He talks about lack of clarity; if he is worried about that, I gently say that he might want to look at his own party’s position.

Offshore Wind Contracts

Alex Cunningham Excerpts

Tuesday 12th September 2023 Commons Chamber

[Graham Stuart]

The CfD scheme is among the most successful, if not the most successful, of its sort in the world. We always look at ways in which we can improve it. We are looking at bringing in non-price factors as we finesse it, but the Opposition party’s idea of some state-run enterprise, squeezing out private investment, would destroy the opportunities going forward. We need at least another £100 billion to be invested by 2030 and if the Labour party ever did threaten to come into power, it would put all that at risk.

[Alex Cunningham (Stockton North) (Lab)]

On Teesside, we have been promised thousands of jobs in the offshore wind industry, but investors are getting a little nervous as a direct result of Government failures to provide the right business environment. What will the Minister do to get the business environment right to deliver the jobs we have been promised, which are being put in jeopardy by Government failures?

[Graham Stuart]

We are getting that balance right and we will continue to do so. Making sure that we look after the consumer is always my guiding light, and we balance that with getting the generation we need. We have seen companies such as SeAH investing in Teesside and Sumitomo looking at investing in Scotland—

[Alex Cunningham]

They are getting nervous—

[Graham Stuart]

As the hon. Gentleman decries this and talks both the area and the nation down, he then tells me that investors are getting nervous. If he were to champion all the successes we have had instead of decrying them, he might find that he would give investors even more confidence still.

Energy Bill [Lords]

Alex Cunningham Excerpts

Report stage
Tuesday 5th September 2023 Commons Chamber

Our amendment 67 deals with a Henry VIII clause to try to stop legislation being changed by fiat. Most importantly, on amendment 66, can it possibly be right to criminalise people, and potentially put them in jail for a year, for muddling their energy efficiency certificate? No, it cannot, and we should not do it.

[Alex Cunningham (Stockton North) (Lab)]

The issue of flaring and venting emissions highlighted in new clause 12 is an extremely important one. Any unplanned hydrocarbon releases must be done safely. I know the tremendous concerns of the trade unions, including the National Union of Rail, Maritime and Transport Workers, and of the 49,000 offshore workers, about the Bill’s failure to address safety-critical maintenance work on oil and gas installations. I very much agree with the sentiments in the new clause and welcome the fact that flaring and venting emissions have been reduced, but according to industry body Offshore Energies UK, the average safety-critical maintenance backlog on UK offshore oil and gas installations increased by 50% during the pandemic. I hope that the Minister will reflect on that and perhaps meet the unions.

Turning to new clause 22, I see tremendous merit in and need for timely and cost-effective connections to the grid, and for an acceleration of the development of an offshore wind energy grid, both of which are critical for Teesside and the Teesworks site. Given the promise of many more jobs in the industry, connectivity to the electricity grid for the Teesworks site could not be more important. I would be obliged if the Minister updated me on power supplies, which I understand do not currently exist for the site, and on how he will use the new legislation to ensure that Teesside gets the power it needs.

The Government say that the purpose of new clause 52 is to give greater certainty to producers of sustainable aviation fuel. That is undoubtedly necessary, but I take issue with the long lead time. The new clause specifies that

“The Secretary of State must open the consultation within the period of 6 months”

and report to Parliament on progress

“within the period of 18 months”.

The industry needs certainty now. I know from talks that I have had with industrialists that the Government’s dilly-dallying is already impacting on investment decisions, and not in a positive way.

New clause 34 calls for a price stability mechanism to support the development of a UK sustainable aviation fuel industry. That is what those in the industry want, and they want it now. Alfanar is developing a £1.5 billion waste-to-sustainable aviation fuel facility on Teesside—the largest in the world and the most advanced in Europe. It also plans two more SAF plants in the UK, but—and this is a big but—it needs certainty from the UK Government that they are serious about the industry and will take the brakes off and get on with creating a business environment that will instil confidence.

I very much welcome new clause 56. It beggars belief that the existing linking of renewable and gas prices in the retail market has delivered billions’ worth of extra cash to energy companies while our hard-pressed constituents pick up the bill. I hope that Ministers will accept that that is unfair on consumers, and that the new clause will help them to correct that. I would have loved to have talked at length about carbon capture and storage, but suffice it to say that the Government should take on board the amendments tabled by others.

[Chris Grayling]

I have pushed my new clause 34 to a point where the Government have responded in a sensible way and started what I hope and believe will be a process. It was not for no reason that around 70 Members of Parliament signed that new clause; it was because of a recognition that this transition is going to happen in one of our most important industries, and it is going to happen around the world.

The migration to sustainable aviation fuel is vital as the world decarbonises, not only because it is an essential first step towards decarbonisation, but in the long term—not for short-haul flights, which I think will be powered by hydrogen; by the 2030s, we will start to see short-haul hydrogen planes in operation. However, there is no technological approach yet that will take us to Australia or North America using anything other than sustainable aviation fuel, so it is a vital industry for the future of this country.

There are investors out there waiting to invest in developing plants here, but they need the confidence to know that there is a Government committed to creating a framework that will enable that investment to take place and be sustained. One of the reasons I intervened on the Opposition spokesman, the hon. Member for Southampton, Test (Dr Whitehead), is that over the next 12 months, as we prepare for a general election, investors are looking for confidence on both sides of the House. It is not about a lack of confidence in our ability to win the next general election; it is about delivering confidence to investors right now.

That is why it is important that both the Government and the Labour party are committed to the development of sustainable aviation fuel in the United Kingdom. We want investors to be taking decisions about the deployment of their capital in this country now, preparing to invest and preparing for the end of the process that the Government have started through their new clauses, so that by 2026 they are ready to build plants, develop sustainable aviation fuel and provide an important part of the future of the aviation industry in this country.

I am grateful to the Minister for what he has done and the assurances he has given today, but I say to him and his colleagues in Government that I and others will be holding their feet to the fire in the next 12 months, to ensure that the consultation starts as quickly as possible and that the response to it comes as quickly as possible. By the time we get to the general election, I want there to be a clear route map forward for the development of SAF in this country that has given investors confidence, so that they know as we go into the election campaign that both sides will take this forward and that we have an industry that will be vital to the future of aviation in Britain, which is a crucial industry for all of us.

Energy Infrastructure

Alex Cunningham Excerpts

Wednesday 5th July 2023 Commons Chamber

[Emma Hardy]

As it stands, the Government have not approved any of the carbon capture and storage projects for the Humber. They approved one for Teesside back in March, but they have not approved any for the Humber. The information that they are giving out is that they will do so “in due course” and that we will “hear shortly”, which is not the same as actually approving a project.

France, Germany, Hungary and Norway are all moving ahead. Those international companies are making decisions now. Those in the Humber face the real possibility of carbon capture and storage infrastructure not being in place in time, in which case they will have to cease operations. These companies will then begin to move to countries where carbon capture and storage is available. Those looking for a place to invest and meet their targets will not choose the UK. Once we miss this opportunity, they are gone forever. For example, the companies are already signing 20-year contracts with Norway.

Without that infrastructure in the Humber, we will not meet our net zero target. According to the independent Climate Change Committee, the 2030 CCUS and hydrogen targets are essential to meeting that target. The UK has one third of Europe’s geological storage and the infrastructure and expertise from gas and oil companies. We have that huge advantage, but it is not enough.

The main message that I want to put across to Government is that investors and companies need certainty. They need to see unwavering commitments and action from Government. Instead, the outside world sees a slow and piecemeal bidding process that results in the UK’s largest industrial cluster being excluded from the first round.

The decision that was made in March was already delayed by nine months because of the political chaos in Government. These companies are already putting in millions of pounds-worth of investment—[Interruption.] The hon. Member for Hyndburn (Sara Britcliffe) can shake her head all she likes, but I recommend that she goes to speak to these companies. They are telling me that jobs are at risk in the Humber and that the decision was delayed because of the political chaos in Government. Those are the facts. The Government’s indecision is resulting in £15 billion of private investment being put at risk along with the Government’s ability to meet their net zero target. Those are the facts, whether she likes them or not.

Our international reputation is being permanently damaged. When I talk to these companies, they tell me that they no longer trust the UK Government and the UK Government’s ability to keep a promise and fulfil their commitments. That international reputation is essential if we want international investment from those companies.

[Alex Cunningham (Stockton North) (Lab)]

My hon. Friend is making a very powerful and informed speech. She will be aware of the INEOS project, with Denmark, to have a carbon capture and storage facility off the Danish coast to take Belgian emissions. Does she agree that we are getting behind in the race to be able to provide and support that sort of project in the future?

[Emma Hardy]

Absolutely. The UK is unique in wishing to have a bidding process. In the USA, if a company says that it can reach the target needed for carbon capture and storage, that project is approved. In the UK, we have a bidding process instead, which means that companies have to invest money in entering the process to begin with, without the knowledge or certainty that they will be approved, even if they can evidence the gains in carbon reduction.

The least that the Humber needs is clarity. When does the Minister expect to move forward with track 2? The track 2 decisions on transport and storage need to be announced alongside decisions on key capture sites in the Humber, with confirmation—this is crucial—that the pipeline will run from the Endurance aquifer to the Humber, as was originally set out for the east coast cluster. Any further delay would risk the viability of the projects.

The good news is that, if the Government give certainty to these industries—if they meet them and provide them with the security and certainty that they need to invest—77,000 new jobs could be created in the Humber, and an industry worth £30 billion in taxable revenue could be there by 2050. That will happen only if the Government provide certainty to investors and move quickly and decisively to get all the UK’s carbon capture and storage capability on-stream ahead of our competitors. This is a one-off opportunity and the Government are dangerously close to blowing it.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

I draw attention to my entry in the Register of Members’ Financial Interests, as I chair the all-party parliamentary group on carbon capture, utilisation and storage. I would like to make a relatively short contribution directly related to the proposed carbon capture, utilisation and storage proposal for Teesside, which could drive huge investment in the area by offering direct access to carbon capture facilities and help sustain many of the businesses that face challenges to cut emissions further. My concern, on this estimates day, is that the Government may be short-changing not just the potential project on Teesside, but potential projects across the country. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) talked about the Humber, and I agree with her that, without a solution for the Humber, we do not have a solution for the UK.

However, I always say credit where credit is due, and the rapid expansion of offshore wind in recent years is something we can be pleased about, but that success was down to the right decisions at the right time to provide the necessary financial protections and business environment to unlock vast amounts of private investment. What we need now is the right action by Government to create a similar environment to unlock the billions of pounds of private sector investment that would follow with the creation of a carbon capture and storage facility, and that is investment in everything from clean power to new chemical plants, which would be able to plug directly into the system to have their emissions stored. Not just that, but the right project with the right supporting infrastructure will also help sustain many existing jobs and halt the exodus of firms that, due to increased energy costs and current carbon costs, find their business is no longer viable.

At Billingham in my constituency, we currently have the Mitsubishi Cassel works working towards final closure, with the loss of several hundred jobs. CF Fertilisers has ceased the production of ammonia just down the road, although I remain hopeful that at least that will restart if energy costs come down. For the record, that is the only remaining ammonia plant in the country, and CCUS would help ensure long-term production.

Yesterday at departmental questions, I raised the issue of the pipeline associated with the proposed Teesside CCUS project. I was concerned that the Government have changed their proposals considerably for the pipeline that BP is charged with developing. My comments are in no way critical of BP, but I am concerned that many businesses are being shut out of the project. Apparently, according to industrialists on Teesside, the proposed pipeline system will not connect CF Fertilisers and Kellas to the system, and it will not pass by the proposed £1.5 billion Alfanar sustainable aviation fuel plant. Is that because insufficient resources are being provided to what I thought was one of the Government’s flagship projects? When I asked the Minister for Energy Security and Net Zero, the right hon. Member for Beverley and Holderness (Graham Stuart), for an update on this very specific matter yesterday, he and the Secretary of State looked at each other with blank expressions on their faces, before there were a few sentences of general waffle about how committed the Government are to CCUS. Well, that simply will not do.

Are the Government really satisfied that there are sufficient resources in these estimates to achieve what needs to be done? If they are already cutting out parts of the Teesside project, how can investors be confident that the correct financial and business environment will be created to allow them to invest? Are the Government really prepared to lose not just existing proposed developments but many more by commissioning a project that falls short of what is needed?

On Teesside, we desperately need the assurance that will unlock the real potential of CCUS, not some sort of second-class project that will not meet the need. We have had too many false dawns for CCUS. I really believed that the Government were finally doing the right thing, but I can tell the Minister that confidence is starting to wane. I was delighted when some of the projects in my area were given the green light to move to the next development phase, but I am disappointed that the announcements missed out so many other projects. Those projects would have been financed by the private sector if only the Government had got their act together and created that necessary business environment.

The Government shortlisted 20 projects for CO₂ capture but, as we know, none on the Humber was selected, and there were just three on Teesside. Now we have learned that the onshore CO₂ collection pipework will not be built to the extent originally planned and will therefore not go to CO₂ emitters CF Fertilisers and Kellas Midstream or pass the all-important aviation fuel plant I mentioned. There are also no plans for a spur to be built to the Wilton International site, which is also of concern because the chemical park has 200 hectares of freeport tax zone and is a prime site for direct foreign investment. My message to the Minister is that we need the onshore CO₂ collection pipework to be built in full and as planned to enable those and other companies to capture their CO₂, and so that companies wanting to invest in new plants that require CCUS facilities will come to Teesside, because we will be able to say that the CO₂ pipework is in place, or is at least planned to be built soon.

However, none of that investment can be guaranteed any longer, and I am sure that the Minister will share my concern at the contents of the Climate Change Committee report, which states:

“we have been slow to react to the US Inflation Reduction Act and the EU’s proposed Green Deal Industrial Plan, which are now a strong pull for green investment away from the UK.”

One example in the report says that the Government have “no policy to deliver” on decarbonising the steel industry. I have also heard that a Chinese petrochemical complex is being equipped with CCUS, which means that we could easily lose our first-mover advantage in this area if we do not get on with this.

Will the Minister comment on claims that the North sea saline aquifer—the Endurance field—will initially not be able to take any more than the three projects-worth of CO₂? I understand that that is disputed, but we need clarity. We need to build the onshore CO₂ collection infrastructure in parallel with drilling more access points into the Endurance field. As the Minister knows, uncertainty is the killer of investment, and we have had no clear steer about what is happening, beyond learning that the onshore CO₂ pipework roll-out is more limited than expected.

The recent Skidmore report describes the

“prize on offer to UK industry”

and says:

“It is essential that the UK acts quickly and decisively. There is a new global race to maximise the growth potential from net zero at a time of wider geopolitical uncertainty. We are now at a crunch point where the UK could get left behind.”

The private capital is there, but it needs to be released. Ministers need to act. They need to ensure that they have sufficient committed expenditure in these estimates to do the whole job—not just on Teesside but across the country. Failure to do so will leave the UK lagging behind on CCUS. We will see current investment proposals withdrawn and end up with a project so limited that it will fail to deliver the huge potential benefits to Teesside and the rest of the country.

Oral Answers to Questions

Alex Cunningham Excerpts

Tuesday 4th July 2023 Commons Chamber

[Graham Stuart]

I am aware of proposals on the shipping and possible piping of hydrogen and the important part that must play. If we are to decarbonise all of British industry, we will need shipping as well as piping. I will be happy to meet my hon. Friend to discuss what further we can do.

[Alex Cunningham (Stockton North) (Lab)]

I very much welcome the recent progress on developing carbon capture, usage and storage on Teesside. I hope we will see the final confirmation that it will happen and the work will start. That said, local industrialists and investors are concerned that the Department is not now asking BP to build the CO₂ collection pipework as originally planned, meaning that it will not go to CF Fertilisers or Kellas or pass by the Alfanar site. Could the Minister provide an update, please?

[Graham Stuart]

We are moving at top speed to drive forward CCUS. We are in a world-leading position. The opportunity is enormous in the Tees, the Humber and areas in the north-west as we seek to get that right and embed those industries in this country.

Energy Bill [Lords]

Alex Cunningham Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Grant Shapps]

I will give way in a few moments; let me just make a few lines of progress.

All of this is why, earlier this year, I was appointed to lead the new Department for Energy Security and Net Zero. It is why, just 50 days later, we published our ambitious “Powering Up Britain” blueprint for the future of energy security in this country. We are bringing all that work together in the Bill before the House.

[Alex Cunningham (Stockton North) (Lab)]

We all celebrated the Government’s decision to move the Teesside carbon capture, usage and storage and power project to the next stage. Today in a written ministerial statement, a Government Minister, the hon. Member for Derby North (Amanda Solloway), said that she was delaying by another four months a decision on whether those plans will get planning permission. Can the Secretary of State understand why this delay will set alarm bells ringing on Teesside and how it will impact the project, and can he explain why the delay is necessary?

[Grant Shapps]

As the hon. Gentleman will know, Ministers must be quite careful when commenting on the quasi-judicial planning decisions that his question goes into, but he should not mistake—nor should anyone in this House—this Government’s determination to get on with things like CCUS and hydrogen. That is why we have announced a £20 billion programme for CCUS, the largest of any country in Europe. As I say, though, and as he well knows, specific planning decisions are matters that the planning inspector advises Ministers on.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

Let me begin by drawing attention to my roles as chair of both the chemical industry all-party parliamentary group and the all-party parliamentary group on carbon capture, utilisation and storage.

I welcome the Bill’s progress. It is long overdue and essential, although I feel that it lacks the necessary ambition to deliver all the Government’s stated aims of making the energy system fit for the future, ensuring the safety, security and resilience of the UK’s energy system, and leveraging private investment in clean technologies.

Ministers have said that there is no way for us to achieve net zero without carbon capture and storage. The target set by the Government is to capture and store 20 to 30 million metric tonnes of carbon dioxide a year—including removals—by 2030, but while that is welcome, I personally believe that there could be an even higher target to benefit our country. The Carbon Capture and Storage Association says that the UK’s CCUS project pipeline would be able to store some 70 million tonnes of CO. The industry is ready to deliver, and we need to let the industry get on with it.

I have been banging the drum for CCUS deployment for quite some time now. Support from the Government has been shaky in the past, with several false dawns—funding whisked away, or not provided at all—so I am pleased to see what looks like real progress, although today’s delay in planning permission for our Teesside project is a worry. Teesside is a vital area for the net zero agenda. Its proximity to offshore wind sources and its cluster of energy-intensive industries that require decarbonisation make it a good location for hydrogen production and carbon capture. I was certainly pleased when the Department selected a handful of carbon capture projects on Teesside to progress to the next stage of development, but I was very disappointed that of the 40 longlisted projects only eight are going forward. and that many in the east coast cluster, including one in the Humber, are missing out. What, I ask the Minister, will happen to them next? That said, I welcome the Government’s statement that the Bill

“will introduce state of the art business models for carbon capture usage and storage…and hydrogen”.

Now they must prove it, and prove it quick.

I know from speaking to industry representatives, especially those in the Teesside cluster, that investors see the timely passage of this legislation as critical to maintaining confidence and momentum in the sector after a decade of those false dawns and U-turns. Representatives of the Chemical Industries Association tell me that their sector also wants the Bill to be passed, pointing out that, while it is imperfect, it contains some fundamental provisions. They say that it will give the sector certainty, including the provisions relating to hydrogen and CCS business models, network charges and Ofgem's remit to include net zero, and they like it. Essentially, however, they are asking for a net zero energy transition at the lowest possible cost, creating competition in the energy market to minimise the risk of domestic and non-domestic consumers’ picking up the cost. How, I ask the Minister, will that be delivered?

Of course, the quickest, cheapest and best answer for our national energy security is a clean energy sprint. New renewables are nine times cheaper than gas. They would not only fight the climate crisis but increase our energy security and sovereignty, bring down bills, and create jobs. However, at this crucial moment for our country and our planet, the Bill does not provide the clean energy sprint that we need, so perhaps the Minister could tell us why the ban on onshore wind—the cheapest, cleanest, quickest energy available—remains. Furthermore, the Bill does not deliver the “green plumbing” measures that are necessary to accelerate the deployment of low-carbon power and grid management, failing to solve the grid connection problems, leaving our planning system unreformed, and failing to add a net zero duty to relevant regulators such as Ofgem. It is certainly not the complete answer to all our needs.

We do not just need renewables; we need renewables done well, and, as the Campaign to Protect Rural England suggests, that can be achieved by empowering communities to decide what is appropriate for their local area, and guaranteeing that they benefit from these schemes. The Countryside Charity has long highlighted community energy projects as the gold standard for renewables done well.

The Bill provides a real opportunity to put financial structures and a programme in place to secure for the 19 million homes in our country that are below EPC band C the upgrades that they need. That is what Labour would do, but there is no plan in the Bill to insulate the homes that need it, which is costing each of those households up to £1,000 a year. Disappointingly, there is no plan to remove the windfall tax loophole or de-link electricity and gas prices so that the cheap power promised by renewables can be passed on to families and businesses rather than being paid out in windfall profits. We should be providing public support to develop our hydrogen industry, but the Government’s preference is to load the cost of subsidy on to household bills.

A number of amendments to the Bill were introduced by the Lords: moving the hydrogen levy away from customer bills; establishing a net zero duty for Ofgem; banning new coalmines; introducing a local electricity Bill; and mandating reporting on EPC standards for homes. I trust the Government will welcome those amendments. I will also support further changes, such as ending the onshore wind ban, banning fracking, expanding targets on the energy efficiency of homes and dealing with grid connection delays.

It is exam season and the Government are facing big tests—I would give them about six out of 10 for now. The Bill has come some way, but we know that in its current state it does not go far enough. Our industry and people depend on us getting this right.

Powering Up Britain

Alex Cunningham Excerpts

Thursday 30th March 2023 Commons Chamber

[Graham Stuart]

I thank my right hon. Friend, and I pay tribute to him for his role as COP President and all the leadership he has given in this area. He is absolutely right to highlight the investment competition, but as I think The Economist mentioned last week, the US approach, with its direct subsidy regime, is not as effective—not as cost-effective—as the UK regime. I am confident in our system, and we are rolling this forward. We have attracted £50 billion of green investment from 2021 to 2022. [Interruption.] Since 2010—when the right hon. Member for Doncaster North, who does not stop chuntering, left power, fortunately—we have had 50% more expenditure per share of GDP in this country than in the US, and we are opening up today the policies to ensure that that continues. My right hon. Friend will be delighted to learn that the CBI has said:

“The package of measures announced by the government represents a gear shift to boost energy security, reduce household bills and re-establish the UK’s credentials as a leader in green technologies.”

That is the CBI speaking for British business, and I believe that the policies today will deliver implementation, which is our main aim as we go forward.

[Alex Cunningham (Stockton North) (Lab)]

After more than eight years championing carbon capture and storage, I welcome today’s positive news, even the repeated bits, but particularly the projects for Teesside. That said, the Government’s ambition falls short of the industry’s, and the Department’s website shows that projects for CF Fertilisers, Alfanar and Kellas Midstream have not made it. Why is that, and what impact will the decision to ditch the Humber projects, in the Minister’s own backyard, have on the innovative, collaborative and excellent Humber-Tees carbon capture, utilisation and storage project?

[Graham Stuart]

I think there was some recognition of good news in there from the hon. Gentleman. He and, unfortunately, all the Labour MPs in his area seem endlessly to talk down Teesside, as it goes from success to success under its excellent Mayor. Today is fantastic news for Teesside, and as I have said, this is just the beginning. We are starting projects now, we are accelerating track 2 and we are promising an extension this year to track 1. We are doing it. The hon. Gentleman, of whom I am a friend and admirer, should stop talking down the success of his area, get behind the development and look at how we have moved from the dire situation in 2010 to the world leadership position we hold today.

Oral Answers to Questions

Alex Cunningham Excerpts

Tuesday 28th February 2023 Commons Chamber

[Graham Stuart]

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

[Alex Cunningham (Stockton North) (Lab)]

14. If he will have discussions with Cabinet colleagues on the potential contribution of the Tees freeport to meeting the UK’s net zero targets.

[The Minister of State, Department for Energy Security and Net Zero (Graham Stuart)]

I continue to discuss with colleagues the contribution that all parts of the country can make to help meet the UK’s net zero targets, including freeports. I was delighted to visit last year and see the transformation being delivered by Mayor Houchen. For instance, SeAH Wind’s £400 million factory investment for offshore wind monopiles will sit alongside the £107 million South Bank Quay on the Tees.

[Alex Cunningham]

Well, we will see what that transformation really brings. I am actually blocked out from any face-to-face briefings by the Tees Mayor, even from his social media, so I have to rely on news releases and third parties for information about the site, thus my question today. It is absolutely critical that the Government work across Whitehall to support this initiative and ensure that the benefits derived are delivered to the community with well-paid jobs in the net zero sector, not just profits for a few local businesspeople. Can the Minister confirm that, despite countless promises of 30,000 jobs, just one company has so far signed a contract to set up premises at the Tees freeport?

[Graham Stuart]

I have known the hon. Gentleman for a long time, so it is disappointing to hear his words. He is right to say that we need co-ordination across Government, including local government, and that is why it was particularly disappointing—and I hope the hon. Gentleman would condemn them—that Labour councillors voted against plans to bring £18 million of investment to Teesside. [Interruption.] They voted against the establishment of a new body that would bring £18 million of investment to Middlesbrough.