Energy Infrastructure

Debate between Alex Cunningham and Emma Hardy

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.