Green Energy Potential: Scotland

Jamie Stone Excerpts

Tuesday 31st January 2023 Commons Chamber

[Ian Blackford]

I entirely agree with the hon. Gentleman. There is enormous potential in tidal energy, and I will say more about that later in my speech when I issue specific requests to the Minister.

The only way in which we can generate the appropriate return in gross value added for the whole Scottish economy and ensure that we feel the benefits in the short, medium and long terms is by controlling the supply chain, in offshore wind and tidal energy as in so many other areas.

Offshore wind may have the most momentum, but it is only one of the many opportunities that have the potential to grow. I am delighted that, only in the last number of weeks, my friend and colleague in the Scottish Government, our net zero Cabinet Minister Michael Matheson, has published our draft energy strategy and just transition plan. That plan contains the ambition to grow the full range of green energy opportunities, including pump storage, tidal, solar and of course green hydrogen. The ambition is to create an additional 20 GW of capacity by 2030—enough to power around 6 million homes, which is far more than the number of households in Scotland. This increased capacity would account for the equivalent of nearly 50% of all current energy demand of households and businesses.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The right hon. Gentleman mentions green hydrogen. The fact is that distilleries in the highlands—Clynelish, Glenmorangie and Dalmore are three examples—are particularly keen to heat and make their whisky using hydrogen rather than fossil fuels. There is a great opportunity here, and I believe it would be of great benefit to His Majesty’s Government and the Scottish Government to have a green hydrogen check to see which businesses could go over to that. It is easy: we take the electricity from the offshore windfarms, we make the hydrogen, it burns and it is dead clean.

[Ian Blackford]

The hon. Gentleman is correct. There is a significant opportunity for hydrogen in the distilleries in his own constituency, in mine and right through the industry. I will go on to talk about the Skilling report that I published on behalf of the SNP a few months ago. It mentions the ability to generate five times as much green energy by 2050 as we are doing today and to grow from just over 12 GW up to 80 GW. There is an enormous opportunity within all that for hydrogen in the domestic economy and for exports.

When we talk about the domestic economy, it is important to dwell on the fact that, if we have the ability to upscale our energy production to the extent that that report has indicated, there ought to be a competitive advantage for industry. We must ensure that we get to net zero and reduce our carbon footprint but we must also create a competitive advantage. The holy grail is to ensure that we can strengthen sustainable economic growth and ensure that that ability to generate green energy creates a competitive advantage for industry that drives up investment and productivity and improves living standards.

But my goodness, let us think about the economies of scale in doing that in the context of the cost of living crisis that we are suffering from today. I say to the hon. Member for Caisthness, Sutherland and Easter Ross, whose constituency is in the highlands, that it is an absolute disgrace that so many of our constituents, and our pensioners in particular, are living in fuel poverty when the highlands and islands are generating so much green energy potential, never mind the impact of the cost of living crisis. I say to the Minister that we need to look at the mechanisms of setting a price in the energy market, which has been a considerable factor in putting so many of our constituents in the peril they are in. In the context of Scotland, we are producing six times as much gas as we need, yet suffering from the mechanisms of the market that are forcing our people to pay for energy to an extent that they should not be.