Humber Energy Estuary

Andrew Percy Excerpts

Tuesday 9th February 2016 Commons Chamber

[Martin Vickers]

It is perfectly true that, unfortunately, there was a misunderstanding and the LEP submission was too late. I certainly urge the Minister, if it is within her power, to grant an extension to the Humber LEP so that the college can be established in the obvious place for it.

[Andrew Percy (Brigg and Goole) (Con)]

Goole.

[Martin Vickers]

I cannot think why my hon. Friend is shouting “Goole”, but to give him his due he has played a supportive role in all that we have done. Certainly, the MPs from the south bank—

--- Later in debate ---

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

I congratulate my hon. Friend the Member for Cleethorpes (Martin Vickers) on securing this debate, as it gives me a fantastic opportunity to set out my vision for the growth and jobs that can flow from the UK offshore industry to the northern powerhouse and across the UK. I am delighted to see the hon. Members for Kingston upon Hull North (Diana Johnson), for Great Grimsby (Melanie Onn), and for Scunthorpe (Nic Dakin) in their places, as well as my hon. Friend the Member for Brigg and Goole (Andrew Percy).

This is an important area, and the Humber estuary has a long history as a driver of jobs and growth in the region, with roots dating back to the 13th century. It has played a key role in our energy infrastructure over many decades—indeed, my right hon. Friend the Minister for Small Business, Industry and Enterprise and I like to call it the northern energy powerhouse. It has played host to vital energy activities, including coal, and more recently offshore wind, not to mention all the other commodities that pass through the numerous ports on the estuary every day. Its location has enabled it to build industries around agriculture, construction, production and energy. My hon. Friend the Member for Cleethorpes is right to point out that it has the potential to deliver much-needed jobs and investment.

There has been a £75 million investment in the Humber international terminal at the port of Immingham, which is receiving some of the world’s largest shipments of biomass destined for Drax. That has the potential to increase to some 6 million tonnes per annum of pellets imported into the UK, becoming a hub for future business, including in the heat sector.

[Andrew Percy]

The Minister is right to mention the huge investment at Immingham in biomass that feeds Drax, which is a massive employer. With the use of coal stopping by 2025, will she commit that biomass will remain an option for energy generation into the future, and that Drax, which has several more units yet to be converted, will be able to bid for that? I have a new role as trade envoy to Canada, so does she recognise the potential growth in jobs in the Humber as a result sustainable biomass coming in from Canada via Immingham? [Interruption.]

[Andrea Leadsom]

My right hon. Friend the Minister for Small Business, Industry and Enterprise is asking whether we can carry my hon. Friend’s bags—I think that is a very good idea. I congratulate him on his new role as trade envoy, and assure him that we are doing what we can to try to secure the future for sustainable biomass, which is important.

We are all aware of the Siemens investment at the port of Hull. That £310 million investment will help to support the industries of the future, and is due to be completed by the end of this year. Of course, we could not talk about the Humber without mentioning Hull, which has been named as the UK City of Culture 2017. We all hope that that will leave a lasting legacy in Hull and the region, as has happened in previous cities.

All those achievements have seen the Humber become a key element of the northern powerhouse, but a key driver for growth in the region will be the offshore wind industry. There has been an incredible expansion in offshore wind which, as my hon. Friend the Member for Cleethorpes rightly pointed out, has been at the expense of bill payers in the UK. Much of that growth is off the east coast of England, generating clean power for hundreds of thousands of homes.

In November 2015, the Secretary of State for the Department of Energy and Climate Change set out our commitment to the future of the UK offshore industry, backed up by the pledge of three contract for difference auctions in this Parliament, provided that we get costs down. Those actions are part of what makes us the greenest Government ever. Alongside our support and commitment to offshore wind, this Government are determined to see higher levels of supply chain content in our energy infrastructure. Our objective is to have a strong, industrialised UK supply chain that delivers higher UK content in offshore projects, and proves its capability, increasing its capacity to win export orders.