Nuclear Decommissioning Authority Direction: Operation Fieldfare
Ed Miliband Excerpts(3 days, 14 hours ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I am today laying a new designation direction to the Nuclear Decommissioning Authority in respect of Operation Fieldfare. The direction has been given in accordance with sections 3 and 5 of the Energy Act 2004.
This direction will expand the Nuclear Decommissioning Authority’s responsibilities under the Energy Act 2004 to allow them to collect and dispose of certain high-activity sealed sources in the UK.
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New Coal Extraction Licences: Prohibition
Ed Miliband Excerpts(1 week ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
First, I would like to give thanks to the hundreds of thousands of workers across the United Kingdom who have dedicated themselves to the coal extraction industry that helped power the industrial revolution for the sacrifices they have made.
At the end of September 2024, Great Britain’s last coal fired electricity power plant, Ratcliffe-on-Soar, closed after over 50 years in service. This marks the right time to take further steps to move away from coal by restricting its future supply.
It is our intention to change coal extraction policy through primary legislation to restrict future licensing of all new coal mines. We anticipate this will involve measures to amend the Coal Industry Act 1994 to prevent the prospective granting of licences. We will examine what limited exceptions may be required—for example, for safety or restoration purposes—and there are a small number of licensed operational coal mines that will be unaffected by the measures and can continue coal mining in accordance with their current licences and consents.
The measures we will bring forward, when timing allows, mean we will be one of the first countries in the world to ban new coal mines, allowing us to focus our efforts on revitalising our industrial heartlands, supporting the transition to new jobs in clean energy across the United Kingdom, and creating industries of the future. It marks a clear signal to industry, markets and the world that coal mining in the United Kingdom does not have a long-term future.
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Paris Emissions Reduction Target: UK’s Nationally Determined Contribution
Ed Miliband Excerpts(1 week, 2 days ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
On Tuesday 12 November at the 29th UNFCCC conference of the parties (COP29) in Baku, the Prime Minister will announce the UK’s 2035 nationally determined contribution (NDC) under the Paris agreement. This will commit the UK to reducing economy-wide greenhouse gas emissions by at least 81% by 2035, compared with 1990 levels, excluding emissions from international aviation and shipping.
The 2035 NDC is based on advice from the independent Climate Change Committee (CCC). It is a clear progression on the UK’s previous NDC pledging to reduce emissions by at least 68% by 2030. It was informed by the outcomes of the global stocktake from COP28 and is aligned with limiting global warming to 1.5 °C. It is aligned with the level of ambition in carbon budget 6 (2033-37) on the pathway to net zero by 2050.
The headline target will be followed by submission of the detail underpinning the NDC—known as information to facilitate clarity, transparency and understanding (ICTU)—to the United Nations framework convention on climate change ahead of the February 2025 deadline. A copy of the ICTU will be laid in the Houses of Parliament.
The UK’s early and ambitious NDC will help restore our global climate leadership and encourage greater ambition from other countries. It is one important part of the UK’s overall contribution to global emissions reductions, alongside our international climate finance and other support.
Globally, the world is way off track from meeting the Paris agreement temperature goal. Climate action must be accelerated drastically to reduce emissions and keep the annual average global temperature rise below 1.5°C. The ambition and delivery of the next round of NDCs, due to be submitted to the United Nations framework convention on climate change (UNFCCC) by February 2025 and implemented in the 2030s, will be critical in enabling this.
The UK’s domestic action is the first crucial step to restoring UK international leadership on climate change. The clean energy transition is also the economic opportunity of the 21st century and will support the creation of hundreds of thousands of good jobs across the UK and protect our economy from future price shocks while delivering a range of social and health benefits.
That is why making Britain a clean energy superpower is one of the five missions of this Government—delivering clean power by 2030 and accelerating to net zero across the economy.
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COP29: Priorities
Ed Miliband Excerpts(1 week, 3 days ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
We are halfway through the critical decade for tackling climate change, but the world is off-track from limiting global warming to 1.5°C. We are facing a triple planetary crisis of climate, biodiversity loss and pollution posing critical threats to the UK’s national interests across security, resilience, health, the economy and partnerships with other countries.
With global temperatures continuing to rise, the impacts of the climate and nature crises—storms, floods, droughts, food and water insecurity, displaced communities—will be a profound source of global disorder. To engage only with the effects of climate change, war, poverty, pandemics or irregular migration when they arrive on our doorstep is to set ourselves up to fail. This is why the UK needs to re-establish itself as a climate leader on the global stage.
Taking on the challenge of climate change is also an incredible opportunity for jobs and growth all across the country. It will improve our health, our quality of life and our overall prosperity.
The Government have already begun work to deliver on this opportunity, through our mission to achieve clean power by 2030 and accelerating our transition to net zero. We have lifted the de facto ban on onshore wind in England, consented significant amounts of solar, introduced legislation to switch on Great British Energy, created the UK’s first carbon capture clusters, and held the most successful renewables auction to date.
We have put clean energy at the heart of our mission-driven Government, because we know that boosting home-grown, renewable energy is the best way to reduce our exposure to volatile fossil fuel markets, protect bill payers, and strengthen our energy independence. The UK will restore its position as a global leader on climate action, building on the power of example to encourage other nations to follow its lead, and working with international partners to support decarbonisation globally.
COP28 in Dubai saw the first global stocktake under the Paris agreement which illustrated the scale of the challenge—by 2030, emissions need to fall by 43% versus the 2% currently projected and climate finance must increase at least fivefold, drawing on all sources.
The 29th conference of the parties under the UNFCCC will be hosted by Azerbaijan in Baku from 11 to 22 November. It presents the first opportunity in 15 years to agree a new finance goal to replace the current $100 billion target. At the same time, countries must demonstrate progress towards delivering on existing commitments including those in the global stocktake—to transition away from fossil fuels, triple renewables, double energy efficiency, and halt and reverse nature and forest loss.
The UK will work with the COP29 presidency and other partners to push for progress in the following three key areas:
Scaling up finance from all sources to accelerate global transitions. We need to agree an ambitious new collective quantified goal on climate finance for the period after 2025. The UK is committed to working with countries to design a climate finance goal that is fit for purpose and supports those most vulnerable to climate impacts, crowding in private finance while recognising the constraints on the public finances in the UK. Outside the negotiations, we need to accelerate reform of the global financial system to address the transition and resilience finance gaps and barriers that countries face.
Scaling up ambition and action to keep 1.5 Paris agreement goal within reach ahead of COP30. As agreed at COP28, countries must come forward with ambitious, all-economy, 1.5°C-aligned nationally determined contributions for 2035 by next February to bridge the emissions gap. As the Prime Minister announced at the United Nations General Assembly in September, the UK will come forward with our own ambitious, 1.5-aligned NDC at COP29 and will support others to do the same. Globally, we need to accelerate the global transition in energy and other sectors and the UK will show progress on this through initiatives such as the breakthrough agenda and the global clean power alliance—a progressive alliance of developed and developing countries working together to accelerate the deployment of clean power globally and mobilise public and private finance to support clean energy. The alliance will help to bridge the financing gap with the global south and enable more countries to secure the benefits of clean, cheap power.
Building resilience to current and future climate impacts. The UK is committed to achieving a climate-resilient and nature-positive world, supporting the most vulnerable and marginalised who are experiencing the worst impacts of the climate and nature crises. Within the NCQG process, we will work for an ambitious outcome on adaptation finance that maximises nature co-benefits. We would also like to see progress on both the global goal on adaptation and the operationalisation of the fund for responding to loss and damage.
Across all these areas, we must recognise the crucial, often overlooked role of high-ambition action on nature including forests in mitigating and adapting to climate change. This means aligning UNFCCC outcomes with the targets of the global biodiversity framework and joining up approaches to tackling climate, biodiversity, and pollution across NDCs, national adaptation plans and national biodiversity strategies and action plans all in the broader context of achieving the sustainable development goals. It includes protecting the ocean through the ocean and climate change dialogue and restoring forests through the Forest and Climate Leaders’ Partnership.
The Prime Minister, along with other ministers, will attend COP over the two weeks and I will be leading the UK’s delegation during the negotiations.
We are determined to do everything in our power to accelerate global action to reduce emissions this decade and keep within reach the 1.5°C goal in the Paris agreement.
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Great British Energy Bill
Ed Miliband ExcerptsTuesday 29th October 2024
(3 weeks, 2 days ago)
Commons ChamberRead Full debate Great British Energy Bill 2024-26 View all Great British Energy Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 29 October 2024 - (29 Oct 2024)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I beg to move, That the Bill be now read the Third time.
It is a privilege to open the Third Reading debate—another milestone in setting up Great British Energy. In less than four months, this Government have incorporated GBE as a company, appointed Juergen Maier as its start-up chair, and launched its first partnership with the Crown Estate. Next will be the national wealth fund. Earlier this month, we announced GBE’s partnership with key public bodies in Scotland. We have also announced its headquarters in Aberdeen. We are acting on our mandate from the British people.
I want to thank everyone who has played a role in getting the Bill to this stage: the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), who has done an incredible job steering the Bill through Committee; Members across the House who have scrutinised the Bill in Committee; all the parliamentary staff who have worked on the Bill; and the fantastic officials in my Department who have moved at such speed over the last four months.
I also want to thank the witnesses who gave evidence to the Committee, all of whom were in support of establishing Great British Energy. I am sure that the House will be interested in the list. They include SSE, EDF, Energy UK, RenewableUK, Scottish Renewables, the Carbon Capture and Storage Association, Nesta, the Green Alliance, the Net Zero Technology Centre, the TUC, Prospect and the GMB. And they are not the only ones. I can inform the House that they join a growing list of supporters, including the CBI, the Aldersgate Group, Octopus Energy, E.ON, the Hydrogen Energy Association, the Scottish Chambers of Commerce, the Port of Aberdeen, the University of Aberdeen and, of course, the British people themselves, who overwhelmingly backed Great British Energy at the general election. Sadly, the only people you can find to oppose Great British Energy are the faction of a sect of a once-great party sitting on the Opposition Benches.
The reason for such support—this will be the argument behind politics for the next few years—is that this country recognises it is time to invest in Britain’s future and put an end to the decline of the last 14 years. That is the choice of this Bill and the choice of the coming years in British politics, and we should relish it: invest or decline.
Sarah Champion
I am fully supportive of GB Energy, but what assurances can my right hon. Friend give to the House that it will be a just transition, that it will be adopted across Government, and that the broadest sector will buy into it?
Ed Miliband
My hon. Friend has made really important interventions on this point. We have been clear that no company in the UK should have forced labour in its supply chain, and we will be working with colleagues across Government to tackle the issue of the Uyghur forced labour in supply chains that she has raised during the passage of the Bill. As part of that, we have relaunched the solar taskforce and we will work with industry, trade unions and others to take forward the actions needed to develop supply chains that are resilient, sustainable and free from forced labour.
Great British Energy is the national champion that our country needs, for three reasons. First, it is at the heart of our mission to make Britain a clean energy superpower. Every family and business has paid the price for our country’s exposure to volatile fossil fuel markets over the last two and a half years. A sprint to clean energy is the way to increase our energy independence and protect families and businesses. We need to invest in wind, solar, nuclear, tidal, hydrogen, carbon capture and more—geothermal too.
Secondly, Great British Energy will help to generate the jobs the UK needs, not just the power. Here’s the thing: our European neighbours recognise that a publicly owned national champion is a critical tool in industrial policy, and the good news is that after 14 years of industrial policy being a dirty, taboo phrase, it is back at the heart of policy making in this Government. Great British Energy is part of our plan to ensure that the future is made and built in Britain.
Thirdly, Great British Energy will ensure that the British people reap the benefits of our natural energy resources, generating profits that can be returned to bill payers, taxpayers and communities across the country. I know that many Members of the House are passionate about the issue of local power, so let me reassure them that the Government are committed to delivering the biggest expansion of support for community-owned energy in history.
Great British Energy is the right idea for our time and has in a short time won huge support. I am sorry that the Opposition have chosen to wallow in their minority status and stand out against it, but let me tell them: their vote tonight will have consequences. For every project that Great British Energy announces in constituencies around Britain, every job that it creates, every local solar project it initiates and every wind project it invests in, we will tell their constituents that they opposed it. They are the anti-jobs, pro-energy-insecurity party, and we will hang their opposition to GBE round their necks from here till the next general election. Invest or decline: that is the choice, and GBE is the right choice for energy security, bills and jobs. I commend the Bill to the House.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Energy Infrastructure Planning Application: North Lincolnshire
Ed Miliband Excerpts(1 month ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
This statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Ltd for development consent for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 megawatts, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Planning Act 2008 to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the North Lincolnshire green energy park application is 18 October 2024.
I have decided to set a new deadline of no later than 14 March 2025 for deciding this application. This is to ensure there is sufficient time for the Department to consider and consult interested parties on a residual waste infrastructure capacity note that officials from the Department for Environment, Food and Rural Affairs intend to publish by the end of 2024.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
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Oral Answers to Questions
Ed Miliband Excerpts(1 month, 2 weeks ago)
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Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
In 12 weeks, this Government have hit the ground running for our 2030 target by ending the onshore wind ban in place for nine years under the Conservative party, consenting to more nationally significant solar projects than in 14 years of the last Government, and overseeing the most successful renewables auction in history compared with the Conservatives’ disastrous auction round that crashed offshore wind. This is a Government in a hurry to meet our mandate from the British people, and we are just getting started.
Dr Opher
I thank the Secretary of State for his really rapid action to reach our 100% sustainable goals by 2030. It has developed a real excitement in this country, and the people I speak to are genuinely behind this action. In Stroud, we are developing a community energy programme of putting solar panels on every school and public building that agrees to it. What steps is he taking to support solar on schools and public buildings, and can he ensure there are no barriers to progress?
Ed Miliband
My hon. Friend is absolutely right about the importance of both rooftop solar and ground-mounted solar. I can tell him that, as part of Great British Energy’s plans, we want to work with local schools, local hospitals and, indeed, local leaders to have a solar panels programme, because this is a way to rapidly decarbonise and to save money off bills.
Mr Barros-Curtis
I thank the Secretary of State for that answer. Cantonian high school in my constituency of Cardiff West will be the first Cardiff school to be operationally net zero in line with Welsh Government standards, while the building work itself will feature a significant reduction in embodied carbon. Fairwater community campus will be a collection of highly energy-efficient buildings that are powered from renewable energy sources, helping Cardiff to deliver on its One Planet strategy, which outlines the city’s ambition to mitigate climate change. Will the Secretary of State join me in celebrating the development, and agree with me that this sort of collaborative vision is required to deliver on our net zero commitments both here and in Wales?
Mr Speaker
Order. Just to help everybody, the hon. Gentleman is meant to go through the Chair, but he was looking at the Secretary of State. As good looking as the Secretary of State is, it is easier if the hon. Gentleman speaks to me, and then I can pick up what he says.
Ed Miliband
Thank you very much, Mr Speaker—and you, too, if I may say so. [Laughter.]
I congratulate my hon. Friend, but particularly the Fairwater community campus on the work it is doing. I think he highlights a very important issue. By helping to decarbonise public buildings, including schools, we help not only to cut our carbon emissions, but, crucially, to save money for those schools that they can then use for frontline services.
Neil O’Brien (Harborough, Oadby and Wigston) (Con)
The previous Secretary of State commissioned the Department to produce a full economic costing for getting to a fully decarbonised renewables-based grid by 2030, as the Secretary of State wants. That is obviously the sort of information that should be placed before the House so that we can have an informed discussion. It may be a good thing to do, but we should obviously know what the cost is. When will the Secretary of State publish that information?
Ed Miliband
Of course, that work is ongoing—in fact, I think the right hon. Lady the shadow Secretary of State has written me a letter about it—and we will be announcing our plans in due course.
Mr Andrew Snowden (Fylde) (Con)
In my constituency, two major offshore wind farms are currently being developed: Morgan and Morecambe. I recently met nearly 100 farmers who will be directly affected by the cabling corridor and the substation plans for the cabling route to connect to Penwortham. I am working with the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) on a potentially better route through her constituency, which would mean a major economic development revitalising an industrial area that has been looking for a major energy project for some time. We are jointly writing to the Secretary of State, and may I ask if he would commit to working with us on at least assessing that potentially alternative route for the cabling corridor?
Ed Miliband
The hon. Gentleman—and he knows this—will obviously want to stand up for what he sees as the best benefits for his constituency. I will be cautious about what I say, because there are proper procedures for planning decisions, including my quasi-judicial role. I will make this general point to the House, because I think this may well be a recurring theme during questions, but if we want to get off the dangerous exposure to international fossil fuel markets, which we were left with by the last Government, we need to build the grid. Every solar panel we put up, every wind turbine we put up and every piece of grid we build will help to deliver energy security for the British people.
Mark Garnier (Wyre Forest) (Con)
Not only is the Secretary of State a very good looking fellow, but we in this House all know that he is an incredibly hard-working and very open Minister, as indeed are his whole team. So I know that the reason he has not replied to my letter of 11 September is that he and his team will be working their socks off to get a full and open answer to all my questions. He has already made reference to one of my colleagues and said that he will produce “in due course” a full systems cost analysis. May I stress that it is incredibly important that we in this House have that systems cost analysis as soon as possible, so that not only can we analyse his ambitious plans for carbon-neutral targets, but we can also explain to our constituents exactly how much it will cost them in their bills to deliver his target?
Ed Miliband
Let me tell the hon. Gentleman a little about the situation that we inherited from the last Government, because it is very relevant—obviously, he was not a Minister in that last Government. We inherited a situation where there was no plan: no plan for their target of 95% clean power by 2030, no plan for their target of clean power by 2035, and no plan to avoid a repeat of the worst cost of living crisis in generations. This Government are developing a plan and will publish it in due course.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Paul Waugh (Rochdale) (Lab/Co-op)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
This Government believe that we can only ensure climate security for further generations in the UK if we lead globally. That was the message of the Prime Minister at the United Nations General Assembly with our world-leading 2030 clean power plan, no new oil and gas licences, and playing our part in reforming the global financial system. Next month I will be attending the COP29 talks in Azerbaijan to stand up for Britain’s interests.
Johanna Baxter
It is brilliant to see the Secretary of State commit to putting climate diplomacy back at the heart of Cabinet, and I know he will bring a great amount of experience to that role. Sir David Attenborough has repeatedly warned that our planet hangs in the balance, so will my right hon. Friend explain to the House what he will do to ensure that Britain is once again a main player on the world stage in tackling the climate emergency? Will he meet me and representatives from my constituency of Paisley and Renfrewshire South to discuss the work that they are doing on rewilding, in an effort to play their part in tackling the climate emergency?
Ed Miliband
It sounds like my hon. Friend’s constituents are doing important work. She is absolutely right. The last Government used to say that we have only 1% of global emissions, as if that was a sort of excuse for inaction on the world stage. We see it differently. We see that only by leading at home can we provide the platform to lead internationally. This Government have in a few short months put Britian back on the world stage on climate, and we will be working with our best endeavours to ensure that we tackle the situation we have inherited—I am afraid the world is miles off track for keeping global warming to 1.5°.
Mr Speaker
Neatly done, although it was a little long. Come on Secretary of State.
Ed Miliband
My hon. Friend did very well, and I agree with him. Part of the problem with the last Government—I do not doubt that there were people making good endeavours—is that when we do something different at home to what we preach internationally, such as say we are going to power past coal by opening a new coalmine, people say, “Well, you are saying one thing and doing another.” Consistency is the absolute foundation for global leadership.
Paul Waugh
I welcome the Secretary of State’s commitment to our international obligations, whether that is clean power lines or our own strong domestic climate policies that will help areas such as Rochdale, with billpayers in recent years facing the grim possibility of high bills. This will make a huge difference, and the obvious comparison with the previous Government is there for everyone to see. Will he outline to the House what further steps he is taking on the global stage at both COP29 and COP30 to increase our global reach on climate?
Ed Miliband
I will say one thing in particular to my hon. Friend. The Prime Minister said at the United Nations General Assembly that we will be unveiling our nationally determined contribution—our target for 2035—at COP29. We are doing that because the danger is that the world settles into a low-ambition equilibrium when it comes to tackling these issues. By having a 1.5º aligned target, we hope to set a good benchmark and a good example for the world.
Munira Wilson (Twickenham) (LD)
The Climate Change Committee has said that there should be no more than a 25% increase in airport capacity, compared with 2018 levels, if we are to achieve net zero by 2050, yet current planned and recently approved airport expansions will allow for a 50% to 70% increase in demand. Can the Secretary of State explain why Ministers in the Department for Transport are considering giving a green light to a third runway at Heathrow? How on earth will that allow the country to meet its net zero targets?
Ed Miliband
The beauty of carbon budgets and the system that was introduced when I was last in government—to be fair, it was carried on by the previous Government of the past 14 years—is that they do at least in theory constrain what the Government do. It is very important that we take carbon budgets seriously in our plans. The plans we inherited from the last Government were way off track for meeting our carbon budgets, which is what this Government will do.
Jim Shannon (Strangford) (DUP)
I very much welcome the Secretary of State to his place. Climate change is real; it is not a myth. The quicker that everyone understands that, the better. Can I pose a question to the Secretary of State on rewilding? There are some suggestions among experts that rewilding by planting trees on moor and heather might not be the most constructive way of utilising rewilding. Has he had an opportunity to look at the issue of rewilding on moors and heather, which I understand that many experts think is detrimental?
Ed Miliband
I take the hon. Gentleman seriously on these issues, and I undertake to write to him or to have one of the Ministers write to him. I make the general point that rewilding and nature-based solutions are an essential part of tackling the climate crisis.
Tim Farron (Westmorland and Lonsdale) (LD)
International trade deals are a great way of using our leverage to make sure we advance our agenda on things such as tackling climate change. The previous Government let Britain down massively, conducting trade deals that let us down on farming, on food production and especially on climate change. Will the Secretary of State ensure that this Government use the creation of new trade deals to advance our agenda on tackling climate change?
Ed Miliband
Yes, and that is something I am already discussing with my right hon. Friend the Business Secretary.
Ed Miliband
All the proper processes were followed by the Foreign Office, which was in charge of the appointment. I have to say that this is a very sad reflection on the Conservative party. Rachel Kyte is an esteemed person who is recognised for her leadership, and all the Conservatives can do is fling around baseless allegations.
Mr Gideon Amos (Taunton and Wellington) (LD)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
After nine years of the disastrous, bill-raising ban on onshore wind in England, this Government overturned the ban in our first 72 hours in office. We have also set up the onshore wind taskforce to restore the pipeline of projects destroyed by the last Government. In the recent renewables auction, almost 1 GW of onshore wind was secured at prices that make it among the lowest-cost power sources to build and operate.
Mr Amos
When will the Secretary of State bring forward proposals for community benefit for those living alongside wind and solar farms to greater incentivise the permitting of wind and solar farms, including Ham solar farm in my constituency? Will that include a minimum level of compensation for the communities affected?
Ed Miliband
I am sympathetic to what the hon. Gentleman says. We are working on proposals on community benefit. I believe that when communities host clean energy infrastructure, they should automatically get benefit from it. I am also sympathetic to what he said about minimum levels of support. We are discussing that with industry at the moment and will come forward with proposals soon.
David Pinto-Duschinsky (Hendon) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
As well as our measures on onshore wind, solar and renewables, this Government have begun legislating for Great British Energy and setting out our plan for proper standards for private and social renters to take 1 million families out of fuel poverty, and on Friday we announced deals to kick-start Britain’s carbon capture industry. All of this will deliver our mission to make Britain a clean energy superpower. It is right for bills, right for energy security, right for jobs and right for climate leadership.
Tracy Gilbert
I welcome the actions outlined by my right hon. Friend, particularly the recent announcement that GB Energy will be headquartered in Aberdeen, with satellite offices in Edinburgh and Glasgow. Can he outline the role that he expects the satellite offices to take? Given the investment already under way in the port of Leith for a number of renewable companies, as well as the prospects for the supply chain and manufacturing, will he consider Leith as the location for the Edinburgh site?
Ed Miliband
My hon. Friend is absolutely right to draw attention to our announcement on Aberdeen as the headquarters of Great British Energy and the important role that it will play, and also to the importance of the satellite offices. I know from my visit to her constituency of the huge potential of her area on these issues, and we want to drive jobs throughout the supply chain through Great British Energy.
Claire Coutinho (East Surrey) (Con)
The Secretary of State promised in the general election to cut everyone’s bills by £300 by 2030—a pledge he will not repeat now that he is in office. In fact, one of his first acts has been to snatch the same amount away from millions of pensioners in poverty. The right hon. Gentleman likes to preach, to politicise and, dare I say it, to patronise, but I have one simple question for him. To the millions of pensioners who are worried about their heating bills this Christmas, will he apologise?
Ed Miliband
The people who should be apologising are the last Government, who left this country in a total mess—a £22 billion black hole. I have to say to the right hon. Lady that she does have a brass neck. She said of the right hon. Member for North West Essex (Mrs Badenoch), whom she is backing in the leadership contest, that she “tells the truth”, and what did the right hon. Member for North West Essex say? She said:
“I have people in my constituency telling me that they don’t need the winter fuel payments…Why do we not have a…mechanism for means-testing?”
That is her position.
Claire Coutinho
There we have it: no apology; no recognition that it is the right hon. Gentleman’s Government’s decisions that are going to leave pensioners in the cold this winter. He has to acknowledge this: from the trade unions to the CBI, from blue Labour to Blairites and from the left to the right of his party, people are sounding the alarm that his ideological approach will see jobs lost and bills go through the roof. Even his old pal Ed Balls does not think that GB Energy is going to deliver the green transition, and I read this morning that the Prime Minister’s brand-new chief of staff is a sceptic of the Secretary of State’s approach. The Secretary of State is increasingly isolated in his party, so when will he do the decent thing and set out the full systems cost of his approach, so that the British public can see what he is going to do to their bills?
Ed Miliband
Oh dear, oh dear. The truth is that after three months of this Government, people have breathed a sigh of relief that there is finally a Government with a plan for the country. [Interruption.] I think the right hon. Lady should listen to what her own ministerial team has been saying about her. The former networks Minister has said that their infrastructure approach is hopeless. The former Energy Minister says that the onshore wind ban was “always mad”, and Lord Callanan said that the right hon. Lady had kicked the solar consents “into the long grass”. If I were her, I would be hoping for just one thing from the next Tory leader: a shadow Cabinet reshuffle.
Danny Beales (Uxbridge and South Ruislip) (Lab)
Sir John Whittingdale (Maldon) (Con)
Ed Miliband
I agree with the right hon. Gentleman. Nuclear is an essential part of the energy mix. We are mainly going to have a renewable system, but nuclear is an essential accompaniment. I fully support all the projects he mentions.
Alistair Strathern (Hitchin) (Lab)
Claire Young (Thornbury and Yate) (LD)
Ed Miliband
The hon. Lady raises a question about the problems of grid connection that is familiar to many Members. We are building on work done by Nick Winser, the former electricity networks commissioner, and we want to go further to tackle the problem of grid connections once and for all.
Tom Rutland (East Worthing and Shoreham) (Lab)
Charlie Dewhirst (Bridlington and The Wolds) (Con)
Ed Miliband
The hon. Gentleman raises a very important issue that I am afraid was not solved by the last Government. We are working at pace with National Grid, and I am sure the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), will be happy to talk to him further about the work we are doing.
Zöe Franklin (Guildford) (LD)
Ed Miliband
The hon. Lady raises the important issue that, as a country, we are massively underpowered on community energy. As part of the GB Energy local power plan we will be trying to change that, learning from countries such as Germany and Denmark, which do much better than us. We will certainly look at the issues she raises.
Euan Stainbank (Falkirk) (Lab)
The clean power by 2030 mission shows the clear intention of this Government to get on with the just transition. Energy workers in Falkirk, Grangemouth and across the central belt are rightly concerned about jobs. Between 2013 and 2023, under the previous Government, jobs in the UK oil and gas sector halved. Unfortunately, some of the Opposition parties have opposed the stream of funding for clean infrastructure and jobs of the future that will come from an increase in the energy profits levy on the record profits of oil and gas giants. Does the Secretary of State agree that it is time Opposition parties started putting their own plans forward on how they would get on with the just transition and deliver clean energy jobs at a critical time for workers and the climate?
Ed Miliband
My hon. Friend raises the important issue that what will define the future for North sea workers is whether there is a plan for future jobs in offshore wind, carbon capture and hydrogen. There was no plan from the previous Government; this Government are absolutely determined to ensure a just transition for those workers, using the power of Government and a proper industrial policy to make it happen.
Dr Luke Evans (Hinckley and Bosworth) (Con)
On petrol prices, for the past 11 years the Government froze fuel duty; they cut it in 2002 and then froze it again. The Government instructed the Competition and Markets Authority to carry out a review, and we came up with the pumpwatch scheme. A consultation was undertaken in January, but when I wrote to the Government in September to ask about its results, they said they were looking at it and would consider it in due course. Is the scheme a priority for the Government? If not, in what other ways will they ensure petrol prices are kept low at the pump? Are they going to freeze fuel duty?
Ed Miliband
I will not comment on the Budget, obviously. We are very sympathetic to pumpwatch—it is important that there is a fair deal for consumers at the pump.
Steve Race (Exeter) (Lab)
Exeter city council has worked hard to install solar panels on council homes to ensure that social tenants can benefit from lower bills and participate in the green transition. Can the Minister set out what more we can do to ensure that all tenants benefit from new green technologies?
Ed Miliband
My hon. Friend raises such an important issue. Across the House, we can have different views on ground-mounted solar, but we need to do more on rooftops and to ensure that tenants, for example council tenants, benefit from such technologies. That is a huge priority for us and we are working on it with colleagues in the Ministry of Housing, Communities and Local Government.
Mr Gregory Campbell (East Londonderry) (DUP)
What discussions has the Secretary of State had with the Scottish Government regarding the major planning application for an offshore wind farm between Scotland and Northern Ireland, which may well have significant implications for the Giant’s Causeway world heritage site?
Ed Miliband
The hon. Gentleman will understand that I have to be careful in what I say about planning issues, but he should rest assured that I have frequent conversations with my counterpart in the Scottish Government and, no doubt, that is one issue we will be discussing.
Matt Western (Warwick and Leamington) (Lab)
Warwick and Leamington must be one of the sunniest places in the United Kingdom given the flurry of applications we have had for solar farms. There is a “loss of amenity” caused by one application, but if that community were prepared to welcome onshore wind turbines, of which we have none in Warwickshire, rather than a solar farm, would the Secretary of State or the Minister agree to support that? Will they meet me to discuss the issue?
Ed Miliband
Every planning application and development consent order is assessed on its merits. Importantly, the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Streatham and Croydon North (Steve Reed), is polishing a land use framework, which has long been needed in this country. It will set out the balance between food security, the use of renewable energy, the restoration of nature and the role of farming. I hope that will help with some of the issues that hon. Members are facing.
Priti Patel (Witham) (Con)
The Secretary of State and the Under-Secretary of State, the hon. Member for Rutherglen (Michael Shanks), have spoken passionately about the need to upgrade the national grid, but do they recognise the concerns of people across the east of England, including in the Witham constituency, about what that means for their local communities? The Under-Secretary has said that he will meet Members of Parliament, but I ask him very politely whether he and representatives and Ministers from the Department will also meet members of the communities that are affected by this matter.
Ed Miliband
I know from the questions that I have received from the Opposition that the right hon. Lady has been a tireless advocate on these issues. I do understand the concerns of local communities about clean energy infrastructure, which is why I am so keen on the idea of community benefit. It is important that communities receive benefit for hosting that infrastructure. We must have a discussion about this matter in the House and across the country. If we are to end our exposure to international fossil fuels and the kind of the cost of living crisis that we have seen over the past few years, which has devastated communities across Britain, this infrastructure does need to be built.
Mike Amesbury (Runcorn and Helsby) (Lab)
Last week’s announcement on carbon capture and hydrogen in my constituency demonstrates that we now have a Government of substance, not of hollow slogans. What discussions have the Secretary of State and Ministers had with the trade unions to ensure that we build those facilities with unionised labour?
Tom Gordon (Harrogate and Knaresborough) (LD)
The Institution of Civil Engineers has called for a spatial energy plan to utilise new and emerging technologies to facilitate future net zero infrastructure planning. Will the Government look to bring forward a spatial energy plan and meet me to discuss that?
Ed Miliband
Yes, we will be bringing forward a spatial energy plan. That is one of the responsibilities of the National Energy System Operator. The hon. Gentleman makes an important point: we need a plan for the system. We can have a plan for the 2030 system done by the NESO and, indeed, a wider strategic spatial energy plan, which will be crucial for the country.
Oliver Ryan (Burnley) (Lab/Co-op)
The warm homes plan is excellent and much needed in towns such as mine, but on warm homes grants for insulation, during recess I met a large number of constituents who had been victims of failed insulation and cowboy workmanship under such Government schemes. Some are living in horrific conditions with useless warranties. Is the Minister aware of their plight? Will she ensure that regulation is strong enough, and will she meet me and victims to make sure that this never happens again?
Carbon Capture, Usage and Storage
Ed Miliband Excerpts(1 month, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Thank you, Madam Deputy Speaker. I heard your statement, and Mr Speaker’s earlier.
With permission, I would like to make a statement on the Government’s carbon capture programme. Last week was a historic week for our energy system. On Monday, 142 years of coal-fired electricity generation came to an end, as Ratcliffe-on-Soar power station closed for the last time. I pay tribute to the generations of coal workers, at Ratcliffe and elsewhere, who powered our country for more than a century, and to power station workers; we owe them a huge debt. I am sure that sentiment is shared across the whole House. As one era ends and we begin the next stage of Britain’s energy journey, the Government are determined to create a new generation of good jobs in our industrial heartlands. On Friday, we began a new era, as Government and industry agreed the deals that will launch Britain’s carbon capture industry.
This has been a long time coming. I was proud, as Energy Secretary, to kick-start the process of developing carbon capture way back in 2009—some hon. Members were then still at school, and I am much greyer now—with a £1 billion competition. In 2011, that programme was cancelled by the coalition Government. In 2012, a new competition was announced, and in 2015, it too was cancelled. When we came to office, we inherited an in-principle aspiration to go ahead, but the very significant Government funding required had not yet been accounted for, so under the last Government we had fits and starts, dither and delay.
By contrast, just three months since we came to office, this Government have turned promise into reality. I can confirm to the House that we have agreed commercial terms, and £21.7 billion of funding over 25 years for five carbon capture, usage and storage projects across two clusters: HyNet in the north-west, and the East Coast Cluster in the north-east. This announcement will enable the construction of two transport and storage networks that will underpin this new industry. The highways for carbon capture and the deals we have agreed will also kick-start development of Net Zero Teesside, the world’s largest gas with CCUS plant, and—these are both in Ellesmere Port—Protos, a new CCUS energy from waste facility, and EET Hydrogen, the UK’s first large-scale blue hydrogen project, which is the cleanest in the world. They will crowd in £8 billion of private investment across the two clusters, creating 4,000 jobs in our industrial heartlands and building an initial capacity to remove over 8.5 million tonnes of carbon emissions each and every year. I pay tribute to the six new Labour MPs in Teesside and colleagues across the north-west who have been brilliant champions for those projects. This is just the start; we will have more to say in the coming months about carbon capture sites in Humberside, Scotland and elsewhere around the country.
This investment is the right thing to do for Britain. CCUS will unlock the decarbonisation of hard-to-abate sectors, from chemicals to cement; enable the production of low-carbon hydrogen; and, by capturing emissions from gas-fired power stations, play an important role, alongside renewables and nuclear, in delivering clean power by 2030 and beyond. That is why experts in bodies ranging from the Climate Change Committee to the International Energy Agency are clear that carbon capture is critical to our meeting our climate commitments. There are those who doubt that. To them I quote James Richardson, the acting chief executive of the Climate Change Committee, who said on Friday quite simply:
“We can’t hit the country’s targets without CCUS”.
The IEA, in a report from 2020 that I very much recommend to right hon. and hon. Members, said:
“Reaching net zero will be virtually impossible without CCUS”,
pointing to “heavy industries” that
“account for almost 20% of global CO2 emissions today”.
To those who doubt whether the technology can work, I point out that it has been operating safely for decades in Norway and the US.
Last week’s announcement puts the UK on the path to leading the world in deploying carbon capture at scale. Being an early mover in this technology offers huge economic and industrial benefits for Britain. The North sea means that we have the chance to lead; it gives us the capacity to store 200 years of our carbon emissions, has existing infrastructure that can be repurposed, and allows us to use the talents and experience of our highly skilled oil and gas workforce.
Over the last few years, around the world we have seen the race for the jobs and industries of the future accelerate. For too long, Britain has opted out and lost out. No longer. We will harness Britain’s geology, know-how and expertise to be a world leader in this technology that will define the 21st century, building an industry that could support up to 50,000 jobs by the 2030s and using every tool at our disposal to seize the opportunities for Britain, with a proper industrial strategy and a commitment—which is absolutely crucial—to using public and private investment to build the future that our country deserves.
That is all part of the action of a Government who, in the last three months, have shown that we are in a hurry to deliver our mission to make Britain a clean energy superpower. We have lifted the onshore wind ban, consented to record amounts of nationally significant solar, launched Great British Energy, delivered the most successful renewables auction in British history, and set out our plans to lift more than a million households out of fuel poverty. We are moving apace, both because of the urgency of the challenges that we face and because of this Government’s determination to win for Britain. Last week marked the end of one chapter in our country’s energy story and the start of a new one—a new era showing that we can decarbonise and reindustrialise, a new era of clean energy jobs and investment in our industrial heartlands, and a new era of climate leadership. I commend this statement to the House.
Claire Coutinho (East Surrey) (Con)
I thank the Secretary of State for giving me advance sight of his statement. While I welcome the news today, I am saddened, if not surprised, that he has not had the grace to acknowledge the work of the last Government in getting us to this place. I know that his opinion is not that of the many partners who have come together to get this project over the line, and it does a huge disservice to his officials, who have worked so incredibly hard over the last couple of years to get us here. As far as I can see, the only positive investments that the Labour party seems to have made in its first 100 days—the Blackstone artificial intelligence data centre in Northumberland, the sixth assessment report and now this—were negotiated under the Conservatives. This is what the right hon. Gentleman’s party has turned into reality: it has crashed business confidence, and overseen £666 million of assets from UK-focused equity funds fleeing the country. No wonder it has had to have a change of management.
In 2022, in the Energy Security Bill, we set out £1 billion of investment and the business models to support the CCUS market. Our aim was to have four industrial clusters by 2030. I must pay tribute to all who have worked together on those plans, including BP, Equinor, Eni, and all those involved with HyNet and the East Coast Cluster.
The brilliant Mayor of Tees Valley, Ben Houchen, has been a leading light in this regard for many years. I noted that the Secretary of State did not mention him, which was pretty graceless, but I am sure that he would like to welcome his work. I must also mention the former Chancellor, my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), who first announced Government support for carbon capture technology amounting to £20 billion last year. That, ultimately, was the breakthrough step that got us here.
The Secretary of State says that CCUS was not funded. Let me remind him of the extent to which he is resting his laurels on a set of draft policy statements for nuclear from back in 2009 that had no Treasury funding attached. I had agreement that at least £20 billion would be spent following the next spending review. The Secretary of State is a former Treasury spad, so he knows what that means. As always, it is the cheap politics that he reaches for. He is, I am afraid, the ultimate career politician. In fact, the funding that we had announced, which would run for 20 years, was about £200 million more per year than what he has set out today. Can he confirm that the projects have not been scaled back, and if they have been, will he tell us where the losses will be?
We have also had no word on the track 2 clusters, Acorn and Viking, on which we were due to make progress over the summer; they were conspicuously absent from the Secretary of State’s statement. Many people will be deeply concerned, so can he update the House on those two projects? More widely, while his announcement rightly drew attention to the importance of British industry, both the TUC and the GMB have warned repeatedly about his net zero plans and what they will mean for British industry. In the words of Gary Smith, the leader of the GMB, the Secretary of State’s approach has been to export jobs and import virtue.
Let us look at what has happened on Labour’s watch. At Grangemouth, 400 jobs are at risk, with nearly 3,000 potentially affected. At Port Talbot, 3,500 jobs are under threat, and at Scunthorpe, there is the potential for 2,500 job losses before Christmas. Moreover, Labour are putting 200,000 jobs at risk through their plans to ban new oil and gas licences and to make the UK regime the most punitive fiscal regime for the sector anywhere in the world. When will the Secretary of State publish an assessment of the impact that his plans for the North sea will have on jobs, and on investment in clean energy? After all, this carbon capture investment today would not be possible without Eni, Equinor and BP—companies using the stable finances of their oil and gas businesses to invest in clean energy.
The Secretary of State has talked about the importance of UK decarbonisation in tackling climate change, but will he acknowledge that his plans to target UK production will not mean that we use less? They will just leave us importing more from abroad—importing more oil and gas from the United States and the middle east, and importing more steel from China, which is still 60% powered by coal. Will he acknowledge that both those developments will actually increase global emissions? It would be carbon accounting gone mad. It might leave some in the green lobby cheering at our reduced emissions, but overall there would be more carbon in the atmosphere and fewer jobs here in Britain. Is the Labour party seriously going to be responsible for the end of steelmaking in the UK, with the added cost of the loss of more than 10,000 jobs in our most left-behind communities? The Secretary of State must acknowledge that a better balance has to be found.
The Secretary of State has still made no comment on, and no apology for, promising the British public at the general election savings of £300 on their energy bills by 2030. Will he finally give an answer to his Back Benchers, the House and all our constituents, and explain what has happened to that pledge?
Ed Miliband
I know that the right hon. Lady is in a difficult position, and it rather showed today. Let us be honest: the truth is quite painful for her. She failed, as Energy Secretary, to get carbon capture over the line, year after year—well, to be fair, she was only in the job for 10 months, but certainly month after month. The funding was never secured, because there was not the political will from the Chancellor or the Prime Minister. We have seen a long line of 20 Energy Secretaries and 14 years of failure. I must give the right hon. Lady her due: she did try, I am sure; but there was nothing but dither and delay. When we came to office, the funding had not been accounted for as part of a spending review; it simply was not there. There was just a vague promise. Now it is quite difficult for the right hon. Lady, and perhaps we should have a little sympathy for her, because she has had to come to the House and see what a Government actually delivering looks like.
Let me deal with the right hon. Lady’s questions in turn. She had the brass neck to suggest that the problems at Grangemouth and Port Talbot were somehow due to the negligence of this Government. Let me tell the House about Grangemouth. I came to office with the closure of Grangemouth already announced and likely to happen. I have probably had more conversations with my counterpart in the Scottish Government than Tory Ministers had in 10 years, because they just were not interested. We should be extremely angry about that. So what did we do? We funded the Willow project, which the Tories did not fund. We added to the growth deal, which they did not do. We said that we would have a national wealth fund with the potential to fund Project Willow. We had none of that from the right hon. Lady. She just was not interested. She just did not care; that is the truth of the matter. Of course it is ideological, rather than accidental. [Interruption.] Yes, it is. A bit of honesty from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie)! I noted that he was very honest about the right hon. Lady at the party conference. The truth is that the Tories did not have an industrial strategy because they do not believe in an industrial strategy.
Let me deal with the rest of the right hon. Lady’s nonsense. I am very pleased that she is interested in Gary Smith, because he has said:
“This is a serious step in the right direction and a welcome investment in jobs and industries after years of neglect under the previous administration.”
That is the reality. As for the other stuff that the right hon. Lady said, I think that she has a decision to make. She began her political career in the Conservative Environment Network, and she has ended up backing a net zero sceptic for the Tory leadership. I think it is a little bit sad. She should take some time to reflect on that, and on the utter contrast between her failure and this Government’s delivery.
Madam Deputy Speaker
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
Unlike the shadow Secretary of State, I am very pleased that the Secretary of State has announced jobs in Teesside—jobs from which my constituents in the north-west of England will potentially benefit. I am also very pleased that we have a Government who are committed to an industrial strategy, and who believe in Government working in partnership with business.
The Secretary of State mentioned just how important it is that we have this technology if we are to decarbonise; he quoted James Richardson in making the case. It will be crucial for the abatement of heavy industries such as chemicals, glass—the Secretary of State went to visit a glass factory in the north-west on Friday—and cement, but it will also be crucial for hydrogen production, for the new gas-fired power stations and, indeed, for converting waste into energy. How long does he think we will need this technology for the abatement of heavy industry, and how long does he think we will need it for hydrogen production and production from gas?
Ed Miliband
I thank my hon. Friend for his question; he makes a really important point. Some people are sceptical about the use of carbon capture and storage. The truth is that for hard-to-abate industries—cement, for example—unless we have CCS technology, either there will be no future for these industries or they will not be able to decarbonise. Yes, it is an investment, but it is absolutely crucial, and I am struck by what the IEA said. We are talking about probably 20% of industry, and we are doing the right thing for Britain and setting an example to the world.
I always say on these occasions that, when it comes to blue hydrogen and gas with CCUS, we need all the technologies at our disposal on this decarbonisation journey. It is going to be a primarily renewables-based system, but nuclear has an important role and we need dispatchable decarbonised or low-carbon generation as well. All these things have a role, and the pathway will become clearer over time, but this issue is so urgent that I want to have all the technologies at our disposal.
Ed Miliband
May I begin by welcoming the hon. Lady to her place, and thanking her for the tone and substance of her remarks? She is right to underline the fact that we are marking a new era but also marking the passing of an era, and it is right to pay tribute to all the people who worked in our coal-fired power stations and, indeed, who worked underground to dig coal for our country. It is a big moment of change and the passing of an era.
On the hon. Lady’s broad points about CCS, my philosophy is that we want zero-carbon power where possible, but we also need carbon capture, particularly for hard-to-abate sectors and so that we can have not unabated gas, but gas with CCS or hydrogen power. She raises the question of cost. Imagine if we had had this conversation 15 years ago, when I was Secretary of State and much younger—15 years younger, to be precise. [Interruption.] Yes, I am good at maths. Some people were saying at the time, “Why are you subsidising offshore wind? It can never be competitive with fossil fuels.” Now, it is among the cheapest technologies to build and operate. That is what deployment does for us, and that is what the combination of public and private sectors working together does for us. Yes, there is an investment here, but a far-sighted, forward-looking Government have to make such investments, and I welcome the hon. Lady’s support.
Barry Gardiner (Brent West) (Lab)
I had rather hoped that my right hon. Friend was going to start his statement by saying, “As I was saying before I was so rudely interrupted—”. I have waited so long to hear a Secretary of State make such announcements from the Dispatch Box, and I am delighted. However, my right hon. Friend knows that carbon capture technologies reduce the energy intensity of fossil fuels by up to 25%, which makes such electricity much more expensive than that produced from renewables. Can the Secretary of State confirm that CCUS will be used not simply to allow the continued extraction of fossil fuel for our power sector, but only for the hardest-to-abate heavy industries and for the production of green hydrogen, thereby keeping domestic fuel bills low and delivering on this Government’s commitment to decarbonise our power sector by 2030 through much cheaper renewables and nuclear, not more expensive gas with CCUS? Finally, may I caution him against swallowing too much of the hype around blue hydrogen?
Ed Miliband
I thank my hon. Friend for his question; he speaks with great knowledge and expertise on these issues. He is absolutely right about the hard-to-abate sectors. I say to him what I said to the Chair of the Energy Security and Net Zero Committee, my hon. Friend the Member for Sefton Central (Bill Esterson): there is a role for both blue hydrogen and gas with CCUS, but that is within the context of a primarily renewables-based system that uses nuclear as well. It goes back to the point about needing all the technologies at our disposal if we are to surmount the challenges we face.
Martin Vickers (Brigg and Immingham) (Con)
The Secretary of State will be aware that the Humber area produces the most emissions in the country, and it is vital that we make progress in that region. Some £15 billion-worth of private investment stands ready. The Secretary of State mentioned that there will be a further announcement in the coming months. Could he perhaps advance that as quickly as possible in order that we can take our first steps towards reaching our targets?
Ed Miliband
Let me say to the hon. Gentleman that this is a point of agreement between us. These are very important projects, and I thank him for his question. They were always envisaged as being two tracks, and we inherited a significant degree of delay from the last Government. We want these projects to happen as soon as possible and, as I said in my statement, this is something that we will address in the months ahead.
Brian Leishman (Alloa and Grangemouth) (Lab)
I was happy to hear the Secretary of State’s words last week when he said that industries should not die, and the Government investment in Merseyside and Teesside is most welcome. Can he commit to the same level of bold and transformative Government action to retain the Grangemouth refinery workers’ jobs, as they face the prospect of redundancies and their industry dying?
Ed Miliband
This is something that my hon. Friend and I have talked about. On Grangemouth, we are advancing at speed—in a way that the last Government completely failed to do, because the project had not even started—with Project Willow, which is seeking an industrial future for the Grangemouth site. He has my absolute commitment that we will use every lever at our disposal in Government to try and make this happen. We have a number of levers available to us that the last Government did not have, including the national wealth fund, and we are going to work intensively on that in the coming months.
Sir Julian Lewis (New Forest East) (Con)
The Secretary of State will know that until a few days ago, the Fawley refinery and chemicals complex run by ExxonMobil in New Forest East was planning a major carbon capture project that involved controversial pipelines either over sensitive areas of the New Forest or across the Isle of Wight. ExxonMobil has temporarily pulled the plug on that, but one reason it seems to think it cannot use a sea route, perhaps to feed this in to the North sea outlet for carbon capture and storage, is the absence of purpose-built ships for the safe transportation of liquefied CO2. Will the Secretary of State look into where we are with the development of safe methods of transporting the gas in liquid form by sea?
Ed Miliband
I thank the right hon. Gentleman for his question. I talked to the UK chair of ExxonMobil last week about this issue, and I believe that the Minister of State, Department for Energy Security and Net Zero, my hon. Friend the Member for Croydon West (Sarah Jones), is going to meet him later this week. For the benefit of the House, this was not in either track 1 or track 2—it was part of the Solent cluster—but we want all the projects to go ahead and the Solent cluster has real potential and is an important part of this. The UK chair told me that this temporary pause was certainly nothing to do with the actions of this Government, but, frankly, was to do with the time it had taken the previous Government to get going on this. I undertake to the right hon. Gentleman that we will continue our dialogue with the company about these issues, including on the more technical issues that he is talking about.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
This announcement is fantastic news for the north-east and for the country. It will place us at the forefront of a critical and growing sector, it will help to re-industrialise regions that have been de-industrialised by successive Conservative Governments and it will deliver thousands of well-paid jobs—jobs that people can raise a family on. For the benefit of those with genuine concerns about the feasibility of this technology—as opposed to those playing party politics with innovation or those ideologically opposed to industry—will my right hon. Friend say a little more about the world-leading research and innovation that will carry on alongside this deployment, and particularly about the carbon storage research facility and the work that it will do?
Ed Miliband
My hon. Friend speaks with great knowledge of this subject. She is unusual in this House, in that she is an engineer by background and actually knows about these issues. She is absolutely right about this. Our world-leading scientists and engineers are a crucial part of our playing a world-leading role in this technology. I also say to those who are worried about the risk of this technology that the much, much greater risk is in not acting. The risk before us is the climate crisis that grows every day, and it is the right thing to do to get CCS moving.
Christine Jardine (Edinburgh West) (LD)
I welcome what the Secretary of State said about there being more news to come about Scotland, because the Acorn project is not a track 1 project; it is a track 2 project. The previous Prime Minister visited Peterhead and raised hopes that there might be investment coming there, but then nothing. The Secretary of State also spoke about the great skills that we have in oil engineering. There is possibly nowhere else in Europe, and perhaps the world, that has more of those skills than the north-east of Scotland, so can he tell us how committed the Government are to bringing forward Acorn as quickly as possible?
Ed Miliband
I concur completely with what the hon. Lady says. We are absolutely committed to Acorn; it is very important. We came into Government with track 1 not accounted for, so part of the challenge was getting track 1 over the line because it just seemed so important to send a signal that there was not going to be more of the dither and delay that we had seen. I can absolutely assure her and other Scottish colleagues across the House that this is of fundamental importance to us. It is of fundamental importance for Scotland but also for the whole of the United Kingdom, because we will not be able to surmount the challenges we face simply with track 1 projects.
Matt Rodda (Reading Central) (Lab)
I thank the Secretary of State for his statement today. Could he say a bit more about how this important project will sit alongside other investments in green energy as we move towards the 2030 and 2050 targets? Could he also explain more about the potential for job creation across the country in a wide range of industries and regions?
Ed Miliband
My hon. Friend is entirely right. This is part of a whole set of things this Government are doing, including lifting the onshore wind ban, releasing private investment and dealing with solar projects that had frankly been sitting on desks for far too long, with nearly 2 GW consented. In fact, more has been consented in nationally consented projects in three months of this Government than in 14 years of the last Government. Doesn’t that tell a story about dither, delay and inaction? So my hon. Friend is absolutely right. This is part of a whole series of investments, both private and public, that this Government are unleashing and putting in.
Jerome Mayhew (Broadland and Fakenham) (Con)
I am pleased that there is an announcement on the funding of blue hydrogen at Ellesmere Port, but what about Bacton, the gas terminal in north Norfolk? What are the Secretary of State’s plans to support blue hydrogen projects at Bacton, which would be ideally suited for the southern North sea? Also, having looked at the numbers, which seem a bit light, could he please confirm that it is still Government policy that we should capture and store between 20 and 30 megatons of CO2 by 2030?
Ed Miliband
On the hon. Gentleman’s first point, that is very much part of our plans for the future. On his second point, we will obviously set out all those details in response to the work of the Climate Change Committee. Frankly, one thing that we are struggling with is the delays under the last Government. I have set out the impact of this project and will be setting out the impact of future projects when they are announced.
Lola McEvoy (Darlington) (Lab)
May I put on record my thanks to the Secretary of State and his wider team, who have decided in such difficult economic times to invest in my part of the country? This marks a huge vote of confidence in our local industry leaders and our fantastic regional workforce, and as he said, it has been a long time coming. Does he agree that this carbon capture project will create exciting, skilled jobs and opportunities for people in Darlington and the Tees valley, solidifying a green industrial future for my constituency?
Ed Miliband
I thank my hon. Friend for that question and for her brilliant advocacy on this issue. She raises an important point, which is that people will look at this investment and think that it is a big investment, albeit over 25 years. Is it the right thing to do for the country? Emphatically, yes. It is right for our industries and for the industries of the future, because the transport and storage networks are absolutely crucial, not just for the specific projects I have announced but for future projects, for our security as a country and for jobs in our industrial heartland. I thank her for her advocacy and we will keep moving forward on this.
Dave Doogan (Angus and Perthshire Glens) (SNP)
The Secretary of State says he is absolutely committed to the Acorn project. Well, the way to show that would be to fund it, because yet again the UK Government have failed to announce funding for carbon capture utilisation and storage projects in Scotland. This is a disaster economically, industrially and environmentally. I am sure he will agree that without Acorn, the UK cannot meet its net zero targets and will miss them by some margin. The last Tory Government failed to back this project in Scotland for years, and despite offering change, Labour has done exactly the same thing, following the same path with broadly the same budget and prioritising less developed, less substantial and less deliverable projects in England while offering the Scottish cluster no funding at all to date. People in Scotland remember well how eager the Treasury and the Westminster Government were to get their hands on revenues from North sea oil and gas. When will we see that returned with investment from Westminster into the north-east of Scotland to support the Acorn project?
Ed Miliband
I am sorry about the hon. Gentleman’s tone, but it is entirely predictable. He knows that there have always been two tracks. This Government have moved at speed to fund track 1, and I have made absolutely clear our commitment to Acorn and track 2.
Anneliese Midgley (Knowsley) (Lab)
I welcome my right hon. Friend’s announcement of major investment in carbon capture in our industrial heartlands, including in Merseyside. Knowsley hosts significant industrial capacity and has huge potential to contribute to this. Can the Secretary of State provide details and meet me to discuss how Knowsley will benefit from investment in the thousands of good, secure jobs expected under this scheme?
Ed Miliband
My hon. Friend is entirely right. The challenge for the Government, and for the companies that have won these contracts, is to make sure that we create jobs in the supply chain, including in her constituency. I look forward to meeting her to discuss this.
Wera Hobhouse (Bath) (LD)
Waste incinerators release, on average, a tonne of CO2 for every tonne of waste incinerated. They are usually called “energy from waste” but their environmental value is questionable unless carbon capture is attached. Yes, we need to recycle more, but energy from waste will be with us for years to come. Will the Secretary of State commit to significantly scaling up carbon capture for energy from waste plants?
Ed Miliband
The hon. Lady is absolutely right, and it is why one of the projects we funded is an energy from waste project. This is exactly the kind of role that CCS can play.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I am grateful for my right hon. Friend’s engagement on this issue. Labour Members from across the Tees valley, especially our friend Alex Cunningham, have been pressing for many years to secure carbon capture, utilisation and storage. Given the dithering of the Conservative party, we had become increasingly anxious that the final investment decisions would not be aligned and that the opportunity to invest in this critical project would be lost. It is a testament to this Labour Government that it has been delivered so early after entering office. So that we can use this precious investment, will my right hon. Friend, along with his Business and Trade and Education colleagues, meet hon. Members from across the Tees valley to discuss how we can secure the well-paid jobs, apprenticeships and training that we need?
Ed Miliband
I pay tribute to Alex Cunningham and my hon. Friend for being tireless advocates. He makes such an important point. As I said to my hon. Friend the Member for Sefton Central (Bill Esterson), we must ensure that the jobs we are delivering get to the people and places that have not seen such opportunities for far too long. I look forward to meeting my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) to discuss this further.
Dr Andrew Murrison (South West Wiltshire) (Con)
Given the Chancellor’s rhetoric about black holes, it is perhaps a little surprising that the Government have managed to magic £22 billion for this, but I wish the Secretary of State well. I hope his plan works. Does he share my concern that, in doing this, we will reduce the drive to decarbonise industries, just as the use of waste incinerators has reduced the imperative to reduce, reuse and recycle waste, including in Westbury in my constituency?
Ed Miliband
I respect the right hon. Gentleman’s question, although I do not agree. First, this is a long-term investment in the country’s future, and I think the Chancellor is far-sighted in recognising its importance. Secondly, there are hard-to-abate industries that, without carbon capture, will find it very hard to enter a decarbonised world. We have to protect those industries, but I agree that, where industries can decarbonise without CCS, of course we want them to do so.
Andrew Pakes (Peterborough) (Lab)
I welcome the Secretary of State’s statement, and I congratulate the trade unions, communities and campaigners that have campaigned for this for so long. His leadership stands in stark contrast with the asset-stripping of jobs, hopes and investment that we have seen in too many of our industrial heartlands. Does he agree that carbon capture is about not just net zero or boosting cluster areas, but boosting jobs, skills and futures in the supply chain in communities such as mine in Peterborough and across the country?
Ed Miliband
My hon. Friend always speaks with great eloquence on these issues, and he is completely right. When we talk about the transition to clean energy creating the jobs of the future, and about it being the greatest economic opportunity of the 21st century, we have to show that it can actually happen. The problem with the last Government is that, although they used that rhetoric at times, they never actually delivered. Today, we are showing the difference.
Adrian Ramsay (Waveney Valley) (Green)
As the Secretary of State will be aware, the vast majority of carbon capture and storage pilot and demonstration projects that have been commissioned worldwide have been cancelled or put on hold. I am concerned that the Government are putting so much money—£22 billion—into an unproven technology. I understand that the track 1 projects are about new gas power stations and blue hydrogen, about which the hon. Member for Brent West (Barry Gardiner) has already expressed concern because they are fossil fuel technologies. Will the Secretary of State rule out investing any of this £22 billion in new fossil fuels, locking the UK into new fossil fuel production? Will he instead consider a major scaling up of natural carbon capture through major investment in the restoration of woodlands, peatlands and wetlands?
Ed Miliband
It is early, but I worry about the hon. Gentleman’s opposition to new grid infrastructure, so goodness knows what will happen to the renewables. He also opposes carbon capture, so goodness knows what will happen to the hard-to-abate industries. I am all in favour of investing in woodlands, but we need all of these things. I want to be generous to the Green party—[Interruption.] I am a generous person, and I am sure the Green party has the best of intentions, but the scale of the transition means this country needs all of these technologies. It is not about choosing to invest in the woodlands and not investing in grid infrastructure or CCS. I urge the hon. Gentleman to think about this, because we need all of these technologies.
Henry Tufnell (Mid and South Pembrokeshire) (Lab)
I welcome the Government’s announcement on moving forward with the track 1 projects, which will create thousands of well-paid jobs, attract inward investment and accelerate us towards net zero. With the closure of the blast furnace at Port Talbot, the two largest carbon emitters in Wales are now in my Mid and South Pembrokeshire constituency, but they have no access to pipeline CO2 transport. What measures is the Secretary of State taking to encourage the decarbonisation of sites such as those in Pembrokeshire, which rely on non-pipeline solutions for CO2 transport, to achieve a just transition?
Ed Miliband
My hon. Friend also speaks with customary eloquence on these issues. This is potentially an important part of the solution. We owe a debt to the workers at Port Talbot, and we must ensure that we leave no stone unturned in looking to the future. I look forward to continuing these discussions with him.
Sammy Wilson (East Antrim) (DUP)
The Secretary of State has boasted about spending £27 billion of public money on carbon capture and storage, and on promoting what he calls renewable energy. Does he feel any sense of irony in taking £27 billion from a financial black hole and putting it into a carbon-absorbing black hole? Does he not recognise that his own green policies are generating the very CO2 he condemns? The Drax B power station needs American forests to be chopped down and brought halfway around the world to be burned, emitting CO2, at a cost of £1 billion a year in subsidy.
In Northern Ireland, we are tearing up thousands of acres of pristine upland bogland to erect windmills, and Scotland has already cut down 17 million carbon-absorbing trees to make space for windmills. I know the Secretary of State is keen on modelling, but have his models told him how many carbon capture and storage facilities will be needed to offset the carbon impact of his green policies?
Ed Miliband
I will let the House into a secret: the conversation—if I can put it that way—between myself and the right hon. Gentleman goes back to 2008 or 2009, when he was shadowing me, so this is a long-running saga, and I fear I will not convince him. I disagree with him on so many levels that it is hard to listen. I respect his point of view, but I think we will not agree.
Alistair Strathern (Hitchin) (Lab)
This Government have shown in the last three months what can be achieved by rejecting the climate denialism that the last Government often seemed at risk of sliding into. However, this announcement is important because it underlines the opportunity we have to also reject climate delivery denialism—the idea that we can somehow make the transition to net zero work without making big, bold investments or by focusing only on narrow solutions that align with our ideological priorities. The International Energy Agency and the Climate Change Committee could not be clearer: CCUS is not just an economic opportunity for this country, but a scientific necessity if we are to meet our climate targets. Will the Secretary of State therefore leave no stone unturned and no opportunity off the table, doing everything we can not just to deliver on our targets, but to ensure that we make the most of the opportunity to reindustrialise parts of this country that have been neglected for far too long?
Ed Miliband
My hon. Friend makes such an important point. I was with the Prime Minister in New York in the last couple of weeks, talking to international partners about where the new British Government stood, and there is a sense that British leadership is back. However, if I had said to them, “We can’t do carbon capture; that’s just not an answer,” they would have said, “Well, what are we going to do about our industries?” My hon. Friend is absolutely right: we need to have all the solutions at our disposal, both for British leadership and for global decarbonisation.
Edward Morello (West Dorset) (LD)
The Secretary of State will know that it is vital that we reduce our global greenhouse gas emissions if we are to avoid the worst ravages of a climate crisis that is already manifesting. Given that this deal risks incentivising hard-to-abate businesses to continue with business as usual, will he outline what steps the Government intend to take to ensure that those industries also invest in reducing their emissions?
Ed Miliband
I welcome the hon. Member to the House. We have all kinds of projects in place to encourage business to decarbonise; indeed, our drive for clean power by 2030 is part of ensuring that we decarbonise the electricity system to help businesses to be part of the decarbonisation journey. However, I just do not recognise the picture that he paints—that this proposal is somehow a disincentive for companies. I hear lots of businesses asking how they are going to exist, frankly, in a decarbonised world. What is the answer, for example, for the cement industry in a decarbonised world? That is why CCS is so vital.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I am so pleased to be part of a new era of clean energy investment, with carbon capture in the north-east and the very successful recent renewables auction. The Secretary of State has been to see our critical minerals, floating offshore wind potential and geothermal potential in Cornwall. Will he please confirm that the industrial strategy and renewables will be truly UK-wide and will span from Scotland and the north-east down to the west and Cornwall, with a clear pipeline of investment opportunities in order to give certainty to developers in, for example, floating offshore wind in the Celtic sea?
Ed Miliband
My hon. Friend is absolutely right. As I have said before in the House, Cornwall has a crucial role to play in our clean energy future. She is a brilliant champion for Cornwall and for floating wind. As she says, there is huge opportunity, and we look forward to working with her to make it happen.
Caroline Voaden (South Devon) (LD)
I welcome the Secretary of State’s enthusiasm for decarbonisation and carbon capture, particularly in heavy industry, including cement. However, the track 1 projects include new gas power stations and new blue hydrogen, which will carry a huge greenhouse gas penalty caused by upstream methane emissions. Will the Secretary of State therefore commit to reviewing the full-lifecycle greenhouse gas emissions for any project before it goes to a full investment decision?
Ed Miliband
That is indeed done as part of this. I gently say to some of those asking me this question that this Government have a world-leading position on no new oil and gas licences, and that position is recognised around the world. I say to the hon. Member—this goes back to what I have said throughout this statement—that we need everything as part of the mix. That is why we are going to keep existing fields in the North sea open for their lifespan—for decades to come—and that is part of the energy mix. Of course we are going to move off oil and gas; indeed, we have a science-based position on this issue, unlike the last Government. But this does need to be a transition, and that is what we are going to make happen.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
I strongly welcome my right hon. Friend the Secretary of State’s commitment to delivering for Teesside and to delivering thousands of good green jobs in clean industries—delivery after years of delay. He mentioned Solent earlier, and he knows the risk that delay can pose to CCUS and to jobs. Does he therefore agree that it is absurd for the Conservative party to try to claim credit for this proposal after failing to deliver for 14 years, failing to commit any resources and leaving our industries in the lurch?
Ed Miliband
My hon Friend is absolutely right. The last Government cancelled the project twice, which tells us all we need to know about them. I had forgotten about the second cancellation; I actually had to check—I could not believe that they had cancelled it not just once but twice. That is going some. After three months, here is the reality: they talked, we acted.
Harriet Cross (Gordon and Buchan) (Con)
The Secretary of State will know that investment in these CCUS projects would not be possible without the private investment generated from our oil and gas companies. In the light of that, of him again confirming his policy on no new licences and of other policies that are set to close down the North sea, how will he ensure that that private investment continues so that more CCUS projects come forward in the future?
Ed Miliband
I listened to what oil and gas companies such as BP and Equinor said: they warmly welcomed this announcement. Frankly, there was a sigh of relief; after years of promises and delay, we finally had a Government getting this done.
Richard Tice (Boston and Skegness) (Reform)
Ten million pensioners will find it utterly extraordinary that this Government can find over £20 billion when they cannot find £1 billion to fund the winter fuel payment. That is £20 billion to invest in what the Secretary of State has today admitted is a risky technology—I find myself in the rare position of agreeing with the co-leader of the Green party, the hon. Member for Waveney Valley (Adrian Ramsay), on that. The extraordinary thing is that this is almost £1,000 per household. Will this sum of taxpayers’ money be added to general taxation, when taxes are already at record highs, or will it be added to our energy bills, which the Secretary of State has promised will be brought down?
Ed Miliband
Let us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I welcome the announcement that has been made, but the Acorn project in St Fergus, between Fraserburgh and Peterhead in my constituency, has been waiting for years, following a promise of jam tomorrow from the last lot. Opposition colleagues have asked for a definitive statement regarding progress on the project. I know that it is a track 2 project, but I am deeply impressed by the extent to which the Secretary of State is prepared to move things forward rapidly, so can he please give us some sort of timescale for the Acorn project today?
Ed Miliband
I am grateful to the hon. Gentleman for the tone of his question. I do understand that, just as track 1 was led a merry dance by the last Government, so too was track 2. The current Government have been in power for three months. We are moving at speed, and we have got track 1 over the line. These are obviously decisions that the Chancellor will have to make in the spending review, for reasons the hon. Gentleman will understand. I just say to him that we are absolutely committed to track 2, including Acorn.
Brian Mathew (Melksham and Devizes) (LD)
I welcome the Secretary of State’s statement, but carbon capture can be done in a number of ways. Anaerobic digestion plants, for example, produce as much CO2 as methane, which can be ducted into greenhouses to produce bigger tomatoes, cucumbers and lettuces. Will such natural carbon capture be included in the project, thereby helping to enhance our food security?
Ed Miliband
I am all in favour of big tomatoes and improving our food security. The hon. Gentleman makes an important point about the potential uses of CCUS. On Friday, we were at a glass factory that will be using hydrogen from a new project and will be the beneficiary of a decarbonised supply. I look forward to further discussions with the hon. Gentleman.
Madam Deputy Speaker (Judith Cummins)
And the final word goes to Jim Shannon.
Jim Shannon (Strangford) (DUP)
Maybe not the final word, Madam Deputy Speaker, as that will be for the Secretary of State. I welcome the statement, in which he rightly underlined that anybody who ignores carbon capture, use and storage does so at their peril, and the Government’s commitment to carbon capture. While the amount set aside is incredible, so too is the requirement that every penny brings an achievement. How will the Secretary of State ensure that each region of the United Kingdom is involved in this net gain? I say to him gently that Northern Ireland is not mentioned in his statement; I am sure he will address that issue. There must be accountability to ensure the realisation of environmental goals, rather than simply the aspiration of achieving them.
Ed Miliband
I thank the hon. Gentleman for his question. I hope he has a conversation with his right hon. Friend the Member for East Antrim (Sammy Wilson)—[Interruption.] I see the right hon. Member does not want to talk to him right now. A good point to end on is the fact that, of course, jobs will be created in certain parts of the United Kingdom, but the measures announced will benefit supply chains across the whole United Kingdom. This Government look forward to ensuring that happens.
Exercise of Powers over the Office for Nuclear Regulation
Ed Miliband Excerpts(2 months, 1 week ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
My noble Friend Lord Hunt of Kings Heath has today made the following statement:
Later today, the annual report to Parliament setting out the use of the Secretary of State’s powers exercised in respect of the Office for Nuclear Regulation during the year will be published. This is in accordance with section 108(1) of the Energy Act 2013.
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Grangemouth Oil Refinery: Jobs
Ed Miliband Excerpts(2 months, 1 week ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
It is deeply disappointing to learn that Petroineos has confirmed its previous decision to close the oil refining operation at Grangemouth. All of my thoughts are with the workers and their families and the wider Grangemouth community. The site will now convert to an import terminal, which will continue to provide a secure and flexible fuel supply for Scotland.
The Government will stand with the workforce in these difficult times. That is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and deliver a viable industrial future for the Grangemouth site, with potential for future support from the national wealth fund.
Since taking office, I have taken joint action with the Scottish Government to urgently engage with the company and its shareholders, leaving no stone unturned to find a viable long-term future for the site. As it is clear that there is no viable commercial future for the current refinery operations, the UK and Scottish Governments have today announced a package that seeks to chart a new future for Grangemouth. This includes:
£100 million package for Falkirk and Grangemouth, including £20 million in joint funding from the UK and Scottish Governments announced today, on top of £80 million in joint funding from the two Governments for the Falkirk and Grangemouth growth deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low-carbon hydrogen, clean efuels and sustainable aviation fuels. We will work with the community to seek a commercially viable proposition, with the potential for future support from the national wealth fund.
Immediate career support for workers. The UK and Scottish Governments will provide tailored support that will help affected workers in finding new employment—and Grangemouth will be among the first areas that the new office for clean energy jobs will work with to help deliver a just transition.
Alongside the Scottish Government, I will also be holding an extraordinary meeting of the Grangemouth Future Industry Board today to discuss next steps with local industry leaders, Falkirk council, and trade bodies and unions.
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