Carbon Capture and Storage (Scotland)

Debate between David Mowat and Thomas Docherty

Tuesday 17th January 2012 Westminster Hall

[Thomas Docherty]

My hon. Friend is exactly right. That is the holy grail. I am not sure if that makes my hon. Friend the Member for Rutherglen and Hamilton West the Sean Connery or the Indiana Jones of the analogy, but it is the holy grail that we should be pursuing, and it can be achieved. My point about Betamax is that it was a fine piece of technology, and our advanced gas-cooled reactors in particular were, and still are, superb engineering kit. I see that the SNP is now a convert to the case for AGRs, championing Hunterston and Torness having life extensions in the years ahead, but when the rest of the world is going down the VHS road, it is slightly disturbing to think that we are going to pursue gas at the expense of coal. Coal is the long-term priority, and there is a significant market, if we can get the technology to work: we can export it not just to developing countries, although that would be a big market, but to many western and European countries that are also very coal reliant.

I should perhaps say a little about the technology itself, and its benefits for Scotland. As Members are undoubtedly aware, the trick with the technology is not just to capture the carbon but to store it. The Peterhead scheme is, as I understand it, very similar to that for Longannet, in that it would seek to push the captured carbon up into the North sea, into land owned by the Crown Estate. It is important to recognise the Crown Estate’s role, and perhaps the Minister can outline how that will work. Reuse of the now extinguished gas and oil fields off our UK shores is also provided for. Interestingly, the Longannet scheme was a tri-party approach, involving National Grid, Iberdrola and one of the largest oil and gas companies, which had an extinguished field. I hope the Minister can say more about how he will encourage the private sector to do more such partnership work.

It is worth saying that no short-term danger is posed to the Longannet power station by the current carbon capture and storage project not getting the go-ahead. The lights will not be turned off at the station tomorrow morning, but there is a question about its medium-term future. There is a genuine debate to be had about whether it would be the right decision to build another coal power station, whether Iberdrola should be encouraged to seek a further life extension, and if so what Government support could be offered, or whether, as at Cockenzie in East Lothian, a decision is made to shift the type of fuel. Whatever the options, I sincerely hope that the UK Government will do all they can to offer genuine support to Iberdrola as it seeks to take this forward, and I would be grateful if the Minister found time—for either himself or his colleague Lord Marland, who has, to be fair, been a big supporter of CCS—to meet with me. Whatever decision is made about Longannet, I hope, ultimately, that when we get successful CCS we can either retrofit the station or, if we do persuade Iberdrola to go for a new build, that we can get it included. For the benefit of my constituents, I would be grateful if the Minister spelt out what support the Government will be able to give to any new build fossil fuel plant that might be needed to keep the lights on.

I am conscious that other Members wish to speak, so I will draw my speech to a close.

[David Mowat (Warrington South) (Con)]

I thank the hon. Gentleman for giving way. I have listened very careful to his arguments about coal and gas. It seems that this technology is a long way from being proven, and it would be a big win if we could get it to work for either gas or coal. I want to address the point about Longannet. The Government’s most recent publication, “The Carbon Plan”, which came out about a month ago, states that the first decision about an operational plant for CCS will be made in 2018. That is a long time after the current generation of coal is scheduled to be switched off, so there is an issue there if we expect this technology to save some of the coal stations that are planned to be switched off in the next five years.

[Thomas Docherty]

I am most grateful to the hon. Gentleman, because he has reminded me of an important issue. If the project had gone ahead at Longannet, the full 2,000 MW would not have been converted to a CCS scheme. Forgive me if my figures are slightly out, but roughly only 20% of the capacity would have moved across. He is entirely correct to say that it is a long-term technology. The problem with energy and its supply is that by its very nature it requires long-term decisions, which is what makes the SNP’s ludicrous plan for 100% renewables so unachievable. They have no “plan McB”—to use the First Minister’s slogan. When the hon. Member for Banff and Buchan addresses the Chamber, I would be grateful if she spelt out how an SNP plan McB would work, given that it is so clearly failing on its plan McA.

--- Later in debate ---

[David Mowat]

I am willing to accept that this technology is new and that the Minister might therefore say it is a bet to try to get it to work in our country. I agree that our country is uniquely well suited for CCS because of the offshore gas fields. In places such as Germany, people have been resistant to CCS because the fields are onshore and they do not want CO₂ under them. Our country is in a uniquely good position for CCS, as it is for wind, and I do not necessarily begrudge the Government spending the money. However, I repeat the point that, structurally, the energy market reform sets the price for carbon and we should let the market decide. We will watch with interest whether the market does decide that this technology is worth pursuing. That is my negative point. I shall now make my positive point.

[Thomas Docherty]

The hon. Gentleman is certainly bringing a different perspective to the debate. Does he not accept that Governments have given subsidies and financial support to both nuclear and renewables for a decade-plus and that CCS pump-priming would be no different from the support that those industries already get?

[David Mowat]

That is a fair point. In the energy market reform that has been published, the Government are very proud of the fact that they are giving no subsidies to nuclear in going forward—[Interruption.] Well, that is a different argument. The Government have subsidised and continue to subsidise renewables. That takes me to my next point.

Draft Financial Services Bill (Joint Committee)

Debate between David Mowat and Thomas Docherty

Monday 18th July 2011 Commons Chamber

[Thomas Docherty]

My hon. Friend is correct. I am baffled—I would happily take clarification from the Leader of the House or the Deputy Leader of the House—as to how removing one member of the Committee is tantamount to seeking to thwart the business of the House. My understanding—I am sure the Deputy Speaker would correct me if I was wrong—is that the Committee would still be quorate and would still be competent.

I look at the names of some members of the Committee and see good, learned and wise individuals from both sides of the House. At least one member, the hon. Member for Warrington South (David Mowat), is present in the Chamber to hear the discussion. The Committee consists of a competent set of Members from both sides of the House. My hon. Friend the Member for Leeds East (Mr Mudie) is a long-standing member of the Treasury Committee.

[David Mowat (Warrington South) (Con)]

I thank the hon. Gentleman for his generosity in referring to me. He is going through the list of people nominated to the Committee. How many of them does he think know more about international financial services than the right hon. Member for Yeovil (Mr Laws)?

[Thomas Docherty]

I will shortly move on to the thrust of my argument and come to the issue of the complications or otherwise for the Committee. We do not seek to thwart the aspects of pre-legislative scrutiny, but we do object to the Government’s choice of one specific individual to sit on the Committee. As I said, this is one of the most important pieces of legislation we will have before us in this Session, and possibly in this Parliament. One point on which both sides of the House would genuinely agree is that over the past few years there was a failing in the scrutiny and regulation of the financial industry. We can argue about who was more to blame for that and about light-touch regulation, or lighter regulation still—[Interruption.] I hear the chuntering from various sedentary positions and, were I to stray too far into the previous Government’s financial regulation regime, I suspect that you, might pull me up on that Mr Speaker.

This is about probity. Ultimately, this comes down to whether or not somebody—I refer to the Standards and Privileges Committee’s report—who was found to have had a serious lack of judgement, who knowingly and wilfully misled the Fees Office and who took significant sums of money, as the report states, is in fact a fit and proper person to sit on a Committee that will scrutinise the new financial services regime. I do not intend to read out the whole report and will stick very closely to the subject of the—