Clean Coal

Ian Lavery Excerpts

Tuesday 28th February 2012 Westminster Hall

[Chi Onwurah]

I thank the hon. Gentleman for mentioning the important economic potential of clean coal, especially at a time of high energy prices. I shall mention that.

[Ian Lavery (Wansbeck) (Lab)]

Does my hon. Friend agree that the north-east region could play a tremendous role in terms of the abundant reserves off its coast, from Durham to the top end of the north-east coast, underground coal gasification and deep-mined coal reserves? Does she agree that we should consider every opportunity to exploit that resource and, in the meantime, create thousands of what we would describe as clean jobs—clean energy jobs—in our region, which has suffered greatly as a result of the closure of the coal industry and shipbuilding?

[Chi Onwurah]

My hon. Friend has a huge amount of experience in coal, to which I pay tribute. He raises important points about the north-east, with regard to our huge coal reserves, which he rightly mentioned, and the economic potential of coal, which I will say a little more about. I thank him for his intervention.

Like all new exciting, but as yet untried, technologies, carbon capture and storage and underground coal gasification require research, analysis and trialling to understand the risks, if any, and whether and how they might be overcome. However, I regret that I am yet to be convinced that the Government are fully committed to enabling the potential of clean coal technologies to meet our energy needs in the medium and long term and to bring to the region and the country the kind of jobs my hon. Friend has mentioned. The Carbon Capture and Storage Association estimates that by 2025 the market for clean coal could be worth £10 billion a year to the UK, with more than 50,000 quality jobs.

--- Later in debate ---

[Chi Onwurah]

My hon. Friend is right to draw attention to the importance of clean coal and clean coal technologies to the north-east and to many regions in the UK, including the north-west.

Last year, in response to an oral question, the Minister told me:

“The Government recognise the potential of underground coal gasification, but the technology is still in its early stages...Our view is that as a carbon capture option it is not a priority to pursue at present. The Coal Authority has lead responsibility, as the freehold owner of our national coal resource, and we continue to monitor developments in the sector.”—[Official Report, 7 July 2011; Vol. 530, c. 1649.]

At a subsequent meeting, in January, the Minister and his officials appeared somewhat more positive and certainly supportive of carbon capture more generally. I was not filled with confidence, however, to learn that the DECC policy team that deals with clean coal is called the coal liabilities team. A rose by any other name would smell as sweet, but can the Department champion the potential of clean coal rather than the legacy of the past?

DECC’s continued delay played a significant part in the failure of the Longannet CCS demonstration project in 2010. In November last year, the Department promised that the money would be reallocated to other CCS projects, but in the autumn statement, the Treasury raided the CCS fund to spend on other projects. Coal-burning power stations still provide 28% of our electricity, rising to 50% in times of high demand. Many coal-fired stations are dependent on testing the viability of retrofitting those new technologies so as to be able to continue production past 2015, as mentioned by the hon. Member for Warrington South (David Mowat).

Globally, China mines three times as much coal as any other country, or more than 3,000 million tonnes of coal in 2010.

[Ian Lavery]

I thank my hon. Friend for giving way a second time. She mentioned China, and it is important for us to look at what is happening on carbon emissions not only regionally and nationally but internationally. I was lucky enough to be in China only two weeks ago, with the Select Committee on Energy and Climate Change. The Chinese put coal production in 2010 at 3.24 billion tonnes; they forecast 3.9 billion or almost 4 billion tonnes of coal per year by 2020, and then they are looking to reduce production to a steady output of around 2 billion tonnes by 2050. Does my hon. Friend agree that it is really up to us to use our engineering and manufacturing skills to get carbon capture and storage on line in the UK, giving us a great opportunity to export our manufacturing to the likes of China, which will make a huge difference overall?