Oral Answers to Questions

Grant Shapps Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Michael Fabricant (Lichfield) (Con)]

14. What assessment he has made of the potential merits of developing nuclear fusion technology to provide energy.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

As set out in the Government’s fusion strategy, the environmental and economic impact of fusion energy could be transformational. The Government’s programme aims to drive commercialisation of fusion energy by building a prototype fusion energy plant by 2040.

[Bob Blackman]

I thank my right hon. Friend for that answer. When I was studying physics at university more than 40 years ago, fusion was a gleam in our professor’s eye. Now we have been able to achieve it, but the key is scalability. What effort is my right hon. Friend making to invest in the research and development that is required to bring this clean, cheap and green energy to fruition?

[Grant Shapps]

As my hon. Friend says, fusion has always been talked about as 20 years hence, but to speed that up we have invested £700 million in fusion in the spending review period. We are working to get the world’s first fusion power station connected to the grid by 2040, with works scheduled to start in 2032.

[James Grundy]

The north-west has long been home to a large number of jobs dependent on the nuclear sector. Does my right hon. Friend foresee the potential for future jobs in the north-west as we continue to develop nuclear fusion technology?

[Grant Shapps]

Yes, absolutely. Fusion technology could be fantastic for the north-west and part of a big jobs boost. The UK Atomic Energy Authority believes that around 4,500 suppliers will be involved in that, and many of them will be in the north-west.

[Mark Fletcher]

With the West Burton spherical tokamak for energy production plan, we have the opportunity to further solidify the east midlands as the home of the UK nuclear sector. What assessment has my right hon. Friend made of the economic benefits to the east midlands of that plant?

[Grant Shapps]

My hon. Friend is absolutely right, and the importance of that plant to the east midlands could be tremendous. The spherical tokamak for energy production—STEP—programme could support a large number of jobs. When I launched “Powering up Britain” with the Prime Minister at Culham, we stood next to the tokamak—the hottest place in the solar system. Some might think that that would be the sun, but it is 10 times hotter than the sun. To put that in context, that would be more than all the hot air from the right hon. Member for Doncaster North (Edward Miliband) in an entire year.

[Michael Fabricant]

My right hon. Friend has answered all the questions that I was going to ask. What work is he doing with Manchester University—I have not told him that I was going to ask this—which is also doing research in that area?

[Grant Shapps]

I am going to have to riff this one, since that came out of the blue. The UK Atomic Energy Authority is working across the country, including with Manchester University. Its CEO, Sir Ian Chapman, is very proactive on this issue, and he hopes to work with Manchester University, and other institutions, to ensure that the coal-fired power station that was closed down at the end of March in West Burton is opened as a fusion power station connected to the grid. That will be done with the help of Manchester University and many other institutions.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Even nuclear fusion’s most ardent advocates admit that it will be decades before an operational power station is built. At the same time, I remind the Secretary of State that his own Government’s target for decarbonising the power sector is 2035, so nuclear fusion will be no help in meeting that target. Instead of wasting taxpayers’ money on yet another nuclear white elephant, why will the Secretary of State not fully harness the things that we know will work, which means an energy system based on renewables backed up with interconnectors, batteries and storage, unblocking onshore wind and unleashing a rooftop solar revolution? Why is he not doing that, which will make the transition much quicker and much cheaper?

[Grant Shapps]

Well, Mr Speaker, we are! When we came to power in 2010, just 7% of our electricity was coming from renewables. Right now, if I look at renewables plus nuclear—I know the hon. Lady does not like to look at nuclear—that figure was 57% in the last year. The idea that we should ignore technology and take that luddite approach to energy is not the energy security that this Government seek.

[Jim Shannon (Strangford) (DUP)]

I have been a supporter of nuclear power and nuclear fusion in particular, and we in Northern Ireland want to take advantage of that, although we have been unable to do so until now. What discussions has the Secretary of State had with the Department for the Economy in Northern Ireland about nuclear technology and creating energy for rural farming, which is a massive industry not just in Northern Ireland but in my constituency of Strangford? We want to be part of this growth. How can that happen?

[Grant Shapps]

I firmly believe that all parts of the United Kingdom should be part of our nuclear revolution to ensure that we can get a quarter of our electricity from nuclear. Small modular reactors could be of tremendous interest in Northern Ireland, providing more localised power to individual communities which previously would not have been up for a gigawatt-style power station.

[Richard Thomson (Gordon) (SNP)]

2. What steps he is taking to support energy transition projects in Scotland.

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

9. What recent assessment he has made of the potential role of North sea oil and gas infrastructure in developing carbon capture and underground storage capacity.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

North Sea oil and gas infrastructure can play a crucial role in lowering costs and speeding up deployment if it is repurposed for carbon capture and storage, therefore improving our energy security.

[Mr Carmichael]

The Greensand project in Denmark has proven the concept of carbon capture, usage and storage, but we know that the supply chain in this country is fragile. Indeed, if others go ahead and develop CCUS, that is where they will go. Companies such as EnQuest in Shetland, which operates the Sullom Voe oil terminal, are keen to do exactly what the Secretary of State is talking about. Would he or the Energy Minister agree to meet me and the operators of EnQuest to hear what it needs to get that exciting project across the line for a final investment decision?

[Grant Shapps]

The right hon. Gentleman is absolutely right about this, but the UK is playing a leading role with its recent £20 billion investment in carbon capture, usage and storage. We have sufficient space to store potentially 78 billion tonnes of carbon under the North sea—equivalent, I am told, to the space occupied by over 15.5 billion well-fed elephants. I would be more than happy to meet him to discuss the potential of the field he mentioned.

[David Duguid (Banff and Buchan) (Con)]

Unlike the SNP, who continue to talk down the fantastic Acorn project, which by the way has never actually stopped—[Interruption.]. One of the reasons it has not stopped is because of the over £40 million invested by this Government in the Scottish cluster; £80 million was promised by the SNP but never delivered. What progress has been made to provide access to CO₂ storage sites such as those in the North sea for industrial clusters without direct access to those sites by pipeline—for example, through shipping? What advantage can be taken of existing infrastructure at ports located near storage sites, such as Peterhead in my constituency?

[Grant Shapps]

My hon. Friend is absolutely right about the £40 million that the UK Government have already spent on the Acorn project. We have track 1 expansion later this year and track 2 will be announced later this year for CCUS. We look forward to further developments. He is also right to highlight the importance of the storage and transportation of carbon; in fact, it is a subject being considered today in the Committee on the Energy Bill. By the way, the largest Energy Bill that the House has ever considered is being passed by this Government.

[Mr Speaker]

We come to Question 11. Is anyone from the Government Front Bench going to bother? They are still thinking about the last question, but I would like a Minister to answer.

[Edward Miliband (Doncaster North) (Lab)]

They are too busy laughing at their own jokes.

[Grant Shapps]

I was laughing at the right hon. Gentleman, actually.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

11. What assessment he has made of the potential impact of the US Inflation Reduction Act on levels of investment in low-carbon industries.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

Nearly £200 billion has been invested in low-carbon sectors since 2010, which is 50% higher than has been invested in the US as a share of GDP.

[Justin Madders]

This is a global race and I fear that, with the US Inflation Reduction Act, we are being left behind. I am sure the Secretary of State will be aware of last week’s comments by Stellantis, which owns Vauxhall Ellesmere Port, about the need for urgent investment in the move to electric vehicle production. The Faraday Institution has reported that we need between five and 10 gigafactories in the UK to protect the automotive sector, and at the moment we have one, maybe two, coming on stream. How many does the Secretary of State think we need to save the automotive sector?

[Grant Shapps]

First, it is good news that the US has woken up to the need for this energy transition. I was in the US last week and they were pointing out to me that we had already spent £200 billion on this, with another £100 billion being leveraged in over the next six and half years to 2030. The point is we are ahead of the US, including on the transition to electric vehicles. The proportion of EVs sold in this country is way in excess of where the US is. By 2030, the US only hopes to get to 50%, whereas we will have ended the sale of pure petrol and diesel vehicles, so in fact we are ahead of the game.

[Mr Speaker]

I call the shadow Secretary of State.

[Edward Miliband (Doncaster North) (Lab)]

The US has created almost 10 times more green jobs in the seven months since the passage of the Inflation Reduction Act than the UK has created in the past seven years. That is why British business is deeply worried. Frankly, the Secretary of State is all over the place on this, because his only significant response to IRA, passed last August, was to describe it as “dangerous”. Can he explain why IRA is dangerous? Is not the real danger to Britain a Government who are standing on the sidelines while others win the race for green jobs?

[Grant Shapps]

I take the opportunity to clear this up, because I have heard the right hon. Gentleman mention that quote several times. I actually said that aspects of the way in which some Senators passed the Act were in danger of being protectionist. He refuses to quote in full and he therefore misquotes.

As I discovered when I was in the US just last week, the reality is that the US does not have the world’s largest, second largest, third largest or fourth largest offshore wind farm. Do you know why, Mr Speaker? They are all being built here in the UK, where we are decades ahead.

[Edward Miliband]

That is exactly the kind of complacency that is costing jobs. Let us talk about offshore wind. The Kincardine floating wind farm, off the coast of Scotland, is indeed the largest in the world. Its foundations were made in Spain, its turbines were made in Rotterdam, where it was also assembled, and the finished product was simply towed into Scottish waters—jobs that could have come to Britain but did not because we have no industrial strategy and the Government refuse to invest in our ports. Is not the truth that we will never win the global race with this Government because they think that public investment in green industry to bring jobs to Britain is dangerous?

[Grant Shapps]

If there was a failure to develop the supply chain, I wonder whether it could have been anything to do with the former Energy Secretary, who only managed 7% of electricity coming from renewables in Labour’s 13 years in office. As I mentioned, we are coming up to 50% of electricity coming from renewables. It is worth mentioning that we had the world’s first floating offshore wind farm and the largest floating offshore wind farm. It is also worth mentioning that we have just invested £160 million through FLOWMIS—the floating offshore wind manufacturing investment scheme–and that we have just succeeded in getting a monopiles factory, which will produce up to half of the monopiles for future offshore wind factories.

[Alison Thewliss (Glasgow Central) (SNP)]

13. What steps his Department is taking to support small and medium-sized enterprises with fixed-term energy contracts.

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[Jill Mortimer (Hartlepool) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

Last week, as I mentioned, I was in the US promoting Britain’s ambitious plans for renewables, nuclear and the incredible potential of carbon capture, usage and storage, which could be worth trillions to our economy. By forging those closer links, we are bringing down bills, safeguarding our energy and putting Putin’s energy blackmail and ransom on the back foot.

[Jill Mortimer]

Does my right hon. Friend agree that we need to seize the unique opportunity in Hartlepool by commissioning an advanced modular reactor for our soon-to-be decommissioned site, to secure jobs and skills and to make Teesside a world-leading area for green energy?

[Grant Shapps]

First, I am very pleased that the Hartlepool nuclear power station has had its lifetime extended to 2026. Secondly, my hon. Friend is absolutely right to be enthusiastic about advanced nuclear reactors and technologies, some of which have a little way to go yet, but they get full support from this Government, and we will support those coming into use when time allows.

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

A more rapid escalation towards net zero could be achieved by a significant increase in electric vehicle charging points, particularly in areas where there are very few, such as Portstewart and East Londonderry in my constituency. What meetings will the Minister have, and what pressure will he apply, to try to ensure that there is a significant increase between now and 2030?

[Grant Shapps]

As a former Transport Secretary, I can inform the hon. Gentleman that the UK has more fast charging per mile of road than any other major European economy, but we are always pushing to go further. In particular, we have a very large programme working with local authorities to install more capacity, particularly for the harder-to-reach roads.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

At the moment, many people receive their domestic energy on a commercial contract, either via a landlord or because they live above a shop. This Government put in protections to support them, but they have now been lifted, and those people are of course ineligible for the Ofgem energy price cap. Will the Government review this situation to ensure those residential customers are treated with the residential protections they deserve?

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[Grant Shapps]

The hon. Lady makes a very good point: where charge points are blocked, they become useless for EVs. The LEVI scheme that she references is designed to try to help as many people as possible, and I will certainly ask my right hon. Friend the Transport Secretary to take a closer look at the specific point she raises about those blockages.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Private jets, described as “incredibly carbon-intensive”, have been in the headlines. The recent Department for Transport-commissioned report suggests that the carbon footprint of private jets in the UK is on par with 200,000 people taking a return flight to Hong Kong, and calls for the number of private jet flights to be halved. Will the Secretary of State be having a word with his colleague the Foreign Secretary about that?

[Grant Shapps]

Private jets are in the headlines almost as much as motorhomes. The reality is that to solve this problem, we need sustainable aviation fuel in the shorter term, which is why the UK has one of the world’s leading targets: 10% of SAF in our energy mix for jets in just six and a half years’ time.

[Alison Thewliss (Glasgow Central) (SNP)]

Some 13,450 energy bills support scheme vouchers have gone unclaimed in my constituency. Given the delays that many of my constituents have experienced in obtaining those vouchers and arguing the case with their energy companies, will the Minister push back the date by which they have to be redeemed, which is currently 30 June?