Oral Answers to Questions

Graham Stuart Excerpts

Tuesday 4th July 2023 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

2. What steps his Department is taking to help energy intensive industries decarbonise.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

The Government are investing billions to support the development and deployment of carbon capture, utilisation and storage, hydrogen and other decarbonisation technologies, and have a range of policies supporting industrial decarbonisation, such as the industrial energy transformation fund and local industrial decarbonisation plans.

[Bill Esterson]

There are 23 clean steel projects across Europe, but none in the UK. Meanwhile, the UK is the only country in the G20 where steel production is falling. Other countries recognise the importance of their domestic steel industries, and they recognise the importance of investing in low-carbon steel. Why do this Government not support our steel?

[Graham Stuart]

As the hon. Gentleman knows well, this Government do support the UK steel industry. On his broader point, which he mentioned in his original question, UK industrial emissions have fallen 65% since 1990, and we are making significant investments in industrial decarbonisation, not least the £20 billion announced at the end of March, which will contribute to decarbonisation through CCUS and help the steel industry.

[Dominic Raab (Esher and Walton) (Con)]

Do Ministers agree that the Government’s competition for small modular nuclear reactors will help provide the volume of energy we need for energy-intensive domestic industries and, over the long term, at a lower cost than previous nuclear power stations?

[Graham Stuart]

I thank my right hon. Friend for his question. There is enormous enthusiasm on the Government side of the House for the potential of nuclear, including small modular reactors. We are determined to see that go forward as quickly as possible, which is why the new organisation, Great British Nuclear, is doing a rapid down selection of technologies this year, precisely in order to unlock the benefits that my right hon. Friend so correctly highlights.

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

On decarbonisation, many organisations, such as the Institution of Civil Engineers, are asking about the Government’s net zero growth plan, which said:

“The public will play a key role in the transition and therefore we will set out further detail on how Government will increase public engagement on net zero.”

Can the Minister clarify when that detail will be published?

[Graham Stuart]

I thank the Chair of the Energy Security and Net Zero Committee. He is right that as well as top-down Government policy, we must unlock the huge public desire of people to play their part and make sure we have the right information in place. That will be provided and produced as soon as possible.

[Mark Pawsey (Rugby) (Con)]

The Minister will welcome measures that many businesses are already undertaking simply because they are the right thing to do, including traditionally carbon-intensive industries, such as cement manufacturing. Cemex in my constituency is investing to use decarbonised raw material and trialling the use of hydrogen in the combustion process, which will significantly reduce the amount of CO₂ generated by every tonne of cement manufactured in Rugby?

[Graham Stuart]

My hon. Friend is right, and he is right to champion those industries that are working so hard to decarbonise already. As my hon. Friend says, we have the net zero hydrogen fund, which will provide up to £240 million by 2025 to support the development and construction of new low-carbon hydrogen production plants, which will be able to assist in cement as well as other industries.

[Dame Maria Miller (Basingstoke) (Con)]

3. What assessment he has made of the adequacy of regulations for industrial lithium-ion battery storage facilities.

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

4. What steps he is taking to help increase the potential benefits of floating offshore wind for the supply chain.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

The Government are committed to placing the UK at the forefront of the floating wind sector. I am delighted to announce that the Crown estate will be providing an update to industry this morning on a 4 GW leasing round in the Celtic sea and has already commissioned the survey work required to support it.

[Stephen Kinnock]

The development of floating offshore wind in the Celtic sea is a once-in-a-generation opportunity for my Aberavon constituency, for Wales and for the entire United Kingdom. Last week, the Climate Change Committee rightly blasted the Government for failing to deliver on their net zero commitment. I am profoundly concerned that floating offshore wind will be squandered due to the lack of grip and direction that the committee described. When will the Minister be bringing forward an industrial strategy for floating offshore wind, which will ensure that Welsh manufacturing and Welsh jobs are placed at the heart of turbine and substructure fabrication, starting with the vital seabed licensing process.

[Graham Stuart]

I thank the hon. Gentleman for his question. We are the world leader in floating offshore wind and we are determined to stay there in order to realise the industrial benefits, which he rightly champions, and the opportunities in Wales. The floating wind demonstration programme—[Interruption.] The Labour Front-Bench team really do not like to hear this, do they? The fact that we have cut our emissions more than any other major economy on earth under this Government is what leads those on the Labour Front Bench to sense their own inadequacy, because they know what they left behind. That floating wind demonstration programme is supporting innovation with £31 million of Government funding matched by £30 million from industry.

[Mr Philip Hollobone (Kettering) (Con)]

Floating offshore wind and all these exciting generation technologies are wonderful, but all of them will come to nought unless we can increase the speed and capacity of the grid connections to get the electricity onshore and to the users who need it. What is the Minister doing to sort out the national grid and to speed up the way in which grid connections are made, because, without this, we will go nowhere?

[Graham Stuart]

My hon. Friend puts it so well. It is so true: whatever the generation, if we cannot get the electrons where they need to go, we are frustrated. That is why we are determined to speed up the connections. That is why, from the Pick report on offshore wind to the Nick Winser review, this Government, led by the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie)—this is the first time that this country has had a networks Minister—are absolutely focused, in a laser-like way, on making sure that we speed up and get the delivery of the infrastructure that we need to deliver the green transition.

[Alexander Stafford (Rother Valley) (Con)]

5. What steps his Department has taken to ensure local community engagement in onshore wind proposals.

--- Later in debate ---

[Sir Christopher Chope (Christchurch) (Con)]

9. What assessment he has made of the potential impact of increases in the population on the ability to meet net zero targets.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

Population growth is taken into account when setting our decarbonisation goals. Specifically, it is accounted for in our baseline emissions projections, which help determine the effort required to meet our carbon targets.

[Sir Christopher Chope]

Does my right hon. Friend accept that in 2050, on present Government policies, we will have 25 million more people in this country than there were in 1990, the base date for carbon dioxide emissions? He obviously accepts that a higher population leads to higher global emissions, but can he also say that when it comes to climate change, it would be a good idea for this Government to concentrate on a net migration policy, rather than net zero?

[Graham Stuart]

As my hon. Friend knows, the Prime Minister is absolutely determined to bring net migration down to sustainable levels. I would also point out to him that the UK does not set decarbonisation targets per capita, because all countries need to reduce emissions in absolute terms. We are determined to play our part in doing that—to move to net zero, but in a pro-growth, pro-business manner.

[Kenny MacAskill (East Lothian) (Alba)]

It is not simply about empowering future generations, but those that exist. That is why the roll-out of smart metering is important. The latest quarterly statistics claim that 57% of UK households have smart meters, but that masks the fact that only four out of 32 Scottish local authorities are above 50% in the roll-out of smart metering, five are below 30%, and three island councils are below 10%. All those are also the areas with the highest fuel poverty. As we approach March 2024, when radio teleswitching will go off, how will we ensure that people have access to smart metering, enabling them to get off-peak tariffs?

[Graham Stuart]

The hon. Gentleman is right, both to enthuse about the importance of smart metering and the benefits it can bring—even more so as we move forward in the coming years—and to highlight the importance of ensuring, as ever, that something so important is equitably distributed. I, or colleagues, would be happy to meet him to discuss how we make sure that the issues he has rightly raised are addressed.

[Mr Laurence Robertson (Tewkesbury) (Con)]

10. What steps he is taking to increase the use of solar panels on building roofs; and if he will make a statement.

--- Later in debate ---

[Dr Kieran Mullan (Crewe and Nantwich) (Con)]

17. What steps he is taking to encourage private sector investment in clean energy technologies.

[The Minister for Energy Security and Net Zero (Graham Stuart)]

Our “Powering up Britain” plan seizes opportunities from the transition to a decarbonised energy system. Our policies, backed by billions of pounds of Government funding—but more importantly, leveraging in about £100 billion of private investment—will support up to 480,000 jobs in 2030.

[Nicola Richards]

Enfinium is building a new energy-from-waste facility in my constituency, which will process nearly 400,000 tonnes of waste to generate electricity for more than 95,000 homes and businesses each year. Will the Minister join me in welcoming this investment in renewable energy, and outline how the Government are supporting energy-from-waste facilities across the country?

[Graham Stuart]

I thank my hon. Friend, and I am delighted to join her in welcoming this new investment, which will be a huge asset to her community as well as having positive national implications. Energy from waste with combined heat and power is supported through pot 1 of the contracts for difference scheme—our auction system. We expect to announce the results of the latest round in early September, and I hope the House will watch that announcement with great interest.

[Dr Mullan]

What assessment has the Minister made of the role of a tariff support mechanism to encourage short-term private sector investment in deep geothermal to support levelling up?

[Graham Stuart]

There is no greater champion than—or anyone in this House with half the knowledge of this, as far as I can tell—my hon. Friend in supporting the potential of deep geothermal. When the Prime Minister responded to his report, I know he thanked my hon. Friend for all the work that went into it. I can confirm that geothermal technologies that generate electricity are eligible for the contracts for difference scheme. We are also supporting and encouraging the development of geothermal heating projects through the green heat network fund, which supports the development of low-carbon heat networks. Under the leadership of my hon. Friend, I am confident that geothermal has a positive future.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Private sector businesses in the Humber are ready and willing to invest £15 billion in carbon capture, storage and decarbonisation projects. However, this is being put at risk because, of the eight track 1 carbon capture and storage projects selected, not a single project was approved for the Humber, despite the Humber being the largest carbon emitter in the country and the fact that 80% of the UK’s licensed CO₂ storage capacity is accessible from the Humber. When will these businesses get the clarity they need? When the track 1 expansion process is launched, will both Humber pipelines be approved?

[Graham Stuart]

I thank the hon. Lady for her question, and she is right to be frustrated because of the enormous potential both to decarbonise and to unlock industrial benefits for the area. We are moving as quickly as possible. I have already said that the Viking project and the Scottish cluster are in the favoured position, and the team is moving as quickly as possible this year to provide more certainty and unlock further investment.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Private sector investment in clean energy is vital, but does the Minister agree that one reason that the United Kingdom, despite having the highest tidal range on planet Earth after Canada, still uses so little of it, is a lack of public sector leadership? Areas such as Morecambe Bay, which could contribute to tidal energy, bringing down people’s bills and protecting us against Putin, are something that we could move forward. Will the Minister agree to meet me and other MPs around the bay, so that we can bring forward plans to get the most out of our tidal energy?

[Graham Stuart]

I am not an expert in the hon. Gentleman’s history on this topic, but I hope it has been consistently in favour of tidal energy, and therefore different from so many other areas of policy. I share his enthusiasm for the potential of tidal energy. That is why we are the world’s leading nation in the deployment of tidal range, and why tidal power is eligible for the contracts for difference scheme. Notwithstanding so many issues, I would be happy to meet the hon. Gentleman.

--- Later in debate ---

[Philip Davies (Shipley) (Con)]

T4.   Will the Minister tell the House what his latest assessment is of the full financial cost to the United Kingdom of reaching net zero, and, if the UK reaches net zero, what difference that would make to global temperatures?

[The Minister for Energy Security and Net Zero (Graham Stuart)]

We estimate that the net cost excluding air quality and emissions-saving benefits will be equivalent to about 1% to 2% of GDP in 2050. As my hon. Friend knows, emissions are global, and we all need to play our part. The UK has a part to play in tandem with others, and that is why I will be working with other Ministers at the conference of the parties in Dubai.

[Mick Whitley (Birkenhead) (Lab)]

T3.   The Climate Change Committee has slammed the Government for their failure on energy efficiency, with the number of homes helped under the energy company obligation having fallen by half between 2021 to 2022 and now standing at a tenth of the level under the last Labour Government. Instead of the usual complacent nonsense, will the Minister explain why the Government are failing to insulate Britain’s homes and what he will do about it?

[Graham Stuart]

The hon. Gentleman is right to be frustrated about progress. But as the Secretary of State said, when the right hon. Member for Doncaster North (Edward Miliband), who is chuntering on the Front Bench, was in power, just 14% of homes were decently insulated; by the end of the year, it will be more than 50%. We have set up the energy efficiency taskforce because we want to go further and faster. We are determined to do more. We are spending £12.6 billion over this Parliament and the next, and—

[Mr Speaker]

Order.

--- Later in debate ---

[Graham Stuart]

I share the hon. Lady’s enthusiasm. We are taking steps to support this technology, and I would be delighted to meet her to discuss it further.

[Mr Philip Hollobone (Kettering) (Con)]

T7.   Lots of green renewable energy is generated in Northamptonshire. For the last year for which figures are available, what was the total output, and the breakdown by type?

[Graham Stuart]

Unfortunately, we do not have public data by constituency and do not yet have the full data for 2022. However, I can tell my hon. Friend that in 2021, north Northamptonshire generated a total of 362 GWh of renewable electricity. The people of Kettering, like their representative, want Kettering to be one of the greenest constituencies in the country.

[Olivia Blake (Sheffield, Hallam) (Lab)]

T9. The Secretary of State has signalled that his party will finally drop the nonsensical proposed hydrogen levy—another welcome Government U-turn. Will he confirm that it is, in fact, a U-turn? Will he outline exactly how the much-needed investment in green hydrogen technology will be paid for without already struggling households being made to foot the bill? [R]

[Peter Aldous (Waveney) (Con)]

T8. The contracts for difference auctions have been very successful in kickstarting the British success story that is offshore wind. [Interruption.] However, the mechanism now needs adaptation to maximise job creation in places such as Lowestoft and to ensure that we adopt a strategic approach to the provision of enabling infrastructure such as ports and the grid. I would welcome an update from my right hon. Friend on the Government’s work on this important issue.

[Graham Stuart]

I could only just hear my hon. Friend’s question, as the shadow Secretary of State made it quite hard to hear. The Government recently completed a call for evidence on this very subject, looking at the introduction of non-price factors in the contracts for difference scheme so that it values things other than just cost deployment. My hon. Friend, like all Members on the Government Front Bench, wants the maximum number of jobs created and retained in this country.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

T10.   Lord Deben has urged the Government to “find the courage to place climate change once again at the heart of its leadership.” Does the Minister share concerns that the Prime Minister and, therefore, this Government are just too weak to stand up to their Back Benchers and really grasp the opportunity and necessity?

--- Later in debate ---

[Lia Nici (Great Grimsby) (Con)]

Will my hon. Friend please outline what his Department is doing to look at the import of green hydrogen feedstock into the UK, to increase the scale and speed of the UK industry and help us achieve our 10 GW capacity by 2020?

[Graham Stuart]

I am aware of proposals on the shipping and possible piping of hydrogen and the important part that must play. If we are to decarbonise all of British industry, we will need shipping as well as piping. I will be happy to meet my hon. Friend to discuss what further we can do.

[Alex Cunningham (Stockton North) (Lab)]

I very much welcome the recent progress on developing carbon capture, usage and storage on Teesside. I hope we will see the final confirmation that it will happen and the work will start. That said, local industrialists and investors are concerned that the Department is not now asking BP to build the CO₂ collection pipework as originally planned, meaning that it will not go to CF Fertilisers or Kellas or pass by the Alfanar site. Could the Minister provide an update, please?

[Graham Stuart]

We are moving at top speed to drive forward CCUS. We are in a world-leading position. The opportunity is enormous in the Tees, the Humber and areas in the north-west as we seek to get that right and embed those industries in this country.

[George Eustice (Camborne and Redruth) (Con)]

The unique geology of Cornwall means that there is huge potential for geothermal energy. There are a number of projects bidding for the current allocation round. Geothermal energy has a competitive strike price, has lithium as a by-product and makes use of mature technology. Will the Secretary of State ensure that those benefits are properly factored into any assessments?

--- Later in debate ---

[Mark Pawsey (Rugby) (Con)]

At a time when the cost of generating electricity is falling thanks to the increasing use of renewables, my constituents do not understand why the price of electricity remains linked to the price of gas. I know that the Government are undertaking a review of electricity market arrangements. When might they expect to see a change?

[Graham Stuart]

My hon. Friend is quite right to ask that question. We would all like to see gas setting the price of electricity more frequently. That is why we are accelerating the take-up of renewables, which were so pitifully low in quantity when Labour was in power. We need a Conservative Government to keep up progress and lower bills right across the country.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The Secretary of State outlined the progress being made on small modular nuclear reactors. Can he provide an estimate of how many there might be within 10 years?