Energy Infrastructure: Chinese Companies

Christine Jardine Excerpts

Wednesday 12th February 2025 Commons Chamber

[Christine Jardine (Edinburgh West) (LD)]

(Urgent Question): To ask the Secretary of State for Energy Security and Net Zero if he will make a statement on the potential security implications of the involvement of Chinese companies, including Mingyang, in energy infrastructure projects.

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

I thank the hon. Lady for bringing the urgent question to the House.

The protection and security of the energy sector is an absolute priority for this Government. We have a range of effective measures in place that give the Government powers to balance an open investment environment to facilitate growth with protecting the areas of our economy that are most sensitive to national security.

The Government firmly believe that the biggest risk to our energy system and energy security is remaining dependent on international fossil fuel markets, controlled by petrostates and dictators. That is why we have a mission to make Britain a clean energy superpower to end that dependence. We have a world-leading offshore wind industry in the UK and international investment plays a crucial role in supporting jobs across the country. As part of that mission, my Department engages in discussions with a wide range of investors, including those from other countries. We are also clear that alongside that, the growth of UK supply chains is critical. That is why we have set out plans for a clean industry bonus to drive investment in manufacturing, as well as setting up Great British Energy and the national wealth fund.

The Government will not hesitate to use our powers to protect national security whenever we identify concerns, and we will take a consistent, long-term and strategic approach to managing the UK’s relations with China, rooted in UK and global interests. The Government will co-operate with China where it can, compete where it needs to and challenge where it must.

[Christine Jardine]

I thank the Minister for her comments and general reassurances, but there are specific concerns at the moment. China can produce what is useful to us for the development of renewables, particularly in the North sea, and we can benefit from those investments. China also needs access to our markets. However, security issues involving companies working in offshore renewable development have become apparent in recent weeks and have been raised numerous times.

It has been reported that the Chinese company Mingyang is interested in producing turbines for a new project in the North sea. Around £60 million of Scottish Government funding has been earmarked for a wind turbine factory near Inverness, in addition to a potential £27 million for Orient Cable to provide subsea cables for island communities. That is despite the European Union bringing anti-trust cases against China and the Norwegian Government blocking Mingyang from its green infrastructure projects.

Will the Minister reassure the House that the Department will follow the same rigorous processes to assess those risks as the previous Government, which ultimately blocked Huawei from the 5G network? This must include an assessment of any opportunities for remote access to the turbines, as the software will normally remain in the control of the manufacturers even once commissioned, leaving them vulnerable to being switched off. We need local control.

Will the Department reassure the House that discussions are ongoing with the Scottish Government to ensure that no public money is invested before this risk assessment has taken place? How will Ministers work with the Scottish Government and Cabinet colleagues to ensure that offshore and undersea infrastructure is safe?

[Kerry McCarthy]

The hon. Lady raises important concerns that we are very much alive to. As I said in my first answer, energy security is critical to the Department’s work and that is why we have the clean power mission to end our dependency on fossil fuels. International investment is a crucial part of that and helps to support growth and jobs across the country. As part of that, we have discussions with a wide range of international investors, but we absolutely recognise that this needs to be balanced against national security implications. We work on that constantly across Government with input from a number of Departments, and I am pleased to see my hon. Friend the Minister for Security from the Home Office here for the urgent question.

The Government have to consider both those aspects together: the need for investment and for greater capacity in our supply chains, and the security risk. While I cannot get into the details of the individual case, given the nature of the ongoing discussions, I reassure the hon. Lady that we are taking these factors into account. We do want to make sure that the most robust processes are followed as we look at the details of this particular issue.