Biomass Power Generation

Debate between Graham Stringer and Nigel Adams

Wednesday 20th March 2013 Westminster Hall

[Nigel Adams (Selby and Ainsty) (Con)]

It is a pleasure to serve again under your chairmanship, Mrs Main. I am delighted to have secured this topical and important debate. I fear that other distractions in the House might limit the number of participants, but I am pleased that hon. Members have taken the time to attend. It is particularly important as we debate the Energy Bill, which will shape our country’s energy profile for decades to come, as well as the emerging biomass industry and the entire UK renewable sector.

My constituency is home to two of the country’s largest coal-fired power stations, Drax and Eggborough; I refer hon. Members to my entry in the Register of Members’ Financial Interests. Between them, they supply 11% to 12% of the UK’s electricity supply or, to put it in terms that most people would understand, enough power for 9 million homes. They are essential national assets, with the flexibility to provide dispatchable electricity—electricity when it is needed—which is critical to the nation’s security of supply. Both stations have well-developed plans to convert some or all of their generating units to burn sustainable biomass over the next few years.

It is crucial to appreciate the difference between biomass and biofuels, which one or two journalists who have written articles recently do not seem to understand. Arguments laying concerns about the destruction of rain forests at the feet of the biomass energy industry are simply inappropriate and wrong and have no part in the biomass industry either now or in future. Those arguments relate to liquid biofuels, which should not be confused with solid state biomass, which has robust sustainability criteria. To imply that protected rain forest wood can be used for power generation is simply wrong. Woody biomass, which is made into the more energy-dense and transport-efficient pelleted form used as fuel by stations such as Drax and Eggborough, is sourced mainly from residues, thinnings and less marketable wood, which is not of sufficient quality to be used for other, higher-value applications.

Bioenergy is a relatively new market, and the demand is welcomed by those in the hard-pressed global forest products industry, particularly where more traditional markets are in decline, as it provides the additional income that they need to continue investing in sustainable forestry management. Growing and harvesting trees provides family-supporting jobs for millions of men and women. Aside from the economic and social aspects, work in forests brings environmental benefits.

I will focus on the role of biomass in UK energy security. I know that energy security is a subject close to everybody’s heart, including that of the Energy Minister. The regulator Ofgem’s recent warning of a capacity crunch—we could have a capacity margin of only 4% as early as 2015—should set alarm bells ringing. It could have disastrous impacts on the cost and reliability of electricity for consumers, particularly the fuel-poor and businesses that are already struggling to remain competitive. Due to other regulations, approximately 12 GW of existing coal and oil-fired plant will be retired. One third of our coal-fired generation will close by 2016, and potentially more in the second half of this decade as further legislation and taxes start to bite.

In readiness for the impact of the closures, there is an urgent need to bridge the capacity gap. Even given the welcome announcement yesterday concerning Hinkley Point, new nuclear projects will not start generating until the 2020s, nor will offshore wind on any scale. Consequently, the low-cost solution of converting our existing coal-fired grid-connected plants to renewable, sustainable biomass can and should play an important role in keeping the lights on in the short to medium term.

In the next few weeks, Drax will convert its first unit to burn sustainable biomass rather than coal, and within the next few years, three of Drax’s six units will have been converted to burn sustainable biomass. I welcome the recent announcement in the Budget that £500 million will be invested in carbon capture and storage at Drax, in partnership with Alstom. The news is incredibly welcome in my constituency, and we look forward to seeing how the trial works. I thank the Minister and the Secretary of State for all their efforts to ensure that Drax had the project.

[Graham Stringer (Blackley and Broughton) (Lab)]

I congratulate the hon. Gentleman on securing this important debate. He has twice used the word “sustainable” to describe biofuels. “Sustainable” is only accurate if one discounts how much carbon dioxide is released from the soil when the trees and vegetation are moved and how many significant journeys will be made to take the biomass from North America to this country. Does he accept that?

[Nigel Adams]

Yes. The biomass that we use must come from sustainably managed forests, by which I mean forests where growth is at least equal to harvest. Nobody is saying that biomass is carbon-neutral; it is low-carbon. We must ensure a neutral, or ideally a positive, growth-drain ratio. The hon. Gentleman makes a particularly good point, to which I shall come later in my remarks.

--- Later in debate ---

[Graham Stringer (Blackley and Broughton) (Lab)]

I want to make a few general points. First, I congratulate the hon. Member for Selby and Ainsty (Nigel Adams) on initiating this important debate. If I was in his situation and had in my constituency two major coal plants that would shut if they were not converted to biomass, I would take exactly his position.

I want to take a step back and give a slightly wider perspective on what is happening, in line with what the hon. Member for Thurrock (Jackie Doyle-Price) said about energy and climate change. I can think of no country in history that remained competitive while it had higher energy costs than its competitors. At the base of our present energy policy is a huge gamble that gas prices will increase and that therefore the investment that the Government are making will make alternative energy competitive. At the moment, however, it is not competitive, and we need to bear that in mind, particularly given the worldwide increase in shale gas.

The second point I would make about the conversion to biogas is that it has two drivers: one is bonkers and counter-productive, while the other should not be implemented. One is the 2020 directive from Europe, which is an attempt to achieve a 20% reduction in carbon dioxide emissions by 2020. On one level, that would be fine, but the measure deals with only one side of the equation—emissions. It does not deal with consumption, and the reason why the carbon budget in Europe and this country is going up is that we are importing machines and other products from elsewhere, which is why the amount of carbon dioxide in the atmosphere is increasing generally. The policy is not working and it is counter-productive—it is a deindustrialisation policy disguised as an environmental policy.

The other problem, which the hon. Lady mentioned, is the large combustion plant directive. I do not understand why this country must implement the directive by a particular date. In that respect, the Minister, who I think is excellent—I rather prefer his interpretation of the country’s energy policy to the Secretary of State’s—owes me, unusually, a letter. I asked him why we had not applied to extend the deadline for implementing the directive, which is allowable under its provisions. Perhaps he will tell us in his response.

There is a subsidy and a cost to biomass. The hon. Member for Selby and Ainsty made a good case, and he gave two reasons for using biomass. One was jobs; as I said, I would make the same argument if I was in his situation. However, when we give an industry a subsidy, as is the case for biomass and the rest of the alternative energy industry, there is a cost elsewhere, as the hon. Member for Thurrock said. That subsidy could be costing jobs elsewhere, even though it may not be necessary.

The second reason that was cited related to security of energy supply, which I would always put at the apex of energy policy. One can argue about price and how energy is made, but if we do not have any, we have nothing to argue about. I remind the hon. Member for Selby and Ainsty that, in times of difficulty, whether that is to do with energy or anything else, an energy supply that comes across the north Atlantic is not totally secure.

[Nigel Adams]

The hon. Gentleman should consider where the fuel comes from now. We buy millions of tonnes of coal to fuel our power stations. It comes across in ships, and I imagine it is extracted through open-cast mining. That has been going on for years, so this is not a new phenomenon. Of course we must get the biomass from somewhere.

[Graham Stringer]

The hon. Gentleman makes a valid point. The trees and forests of this country certainly could not be a sustainable supply, given the level of burn that there would be.

I am reminded a bit of Aneurin Bevan’s comment that we live on an island made out of coal and surrounded by fish, and it would take fools to damage our food or energy supply. I do not know what has happened in the past 30 or 40 years.