John Hayes
Main Page: John Hayes (Conservative - South Holland and The Deepings)(11 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Mark Spencer (Sherwood) (Con)
3. What assessment he has made of the role of carbon capture and storage in the development of future energy strategy.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
It is a pleasure to answer a question from my hon. Friend the Member for Sherwood, the Robin Hood of his age. Carbon capture and storage has the potential to play a crucial role in our future low-carbon energy mix, allowing us to benefit from the flexibility of fossil fuels without associated emissions. As set out in the annual energy statement, the Government are committed to working with industry to create a cost-competitive CCS industry in the UK, and to make that happen we have introduced one of the best support packages in the world.
Mr Spencer
What a privilege it is to receive an answer from the Minister who has won the award of Minister of the year! Does he agree that CCS gives us the opportunity to make use of coal, which offers us 200 years-worth of supply, flexibility within the market and the ability to produce our energy very cheaply? Will he come and have a look at the coal industry in Sherwood?
Mr Hayes
When I think of Nottinghamshire I think of my hon. Friend, and when I think of my hon. Friend I think of Nottinghamshire—how proud each must be of the other. He is right to say that carbon capture and storage can play a role in delivering clean coal, and three of the four projects we are supporting in our £1 billion competition are coal projects. I know that he visited Thoresby colliery in his constituency just a few weeks ago, and he will understand that CCS is crucial to our ambitions to deliver energy security in a way that reduces emissions.
Mr Mike Weir (Angus) (SNP)
The Government have not met the deadline for the first stage of European Union funding for CCS, yet the gas strategy looks to the construction of about 30 new gas-fired power stations. Will the Minister tell me how many of those are likely to have CCS fitted from the outset?
Mr Hayes
The hon. Gentleman says that we did not benefit from European funding in the first stage. In anticipation of this scrutiny, I spoke to the European Commissioner for Climate Action just yesterday evening, making it very clear that we hope for—indeed, we expect—European support for the work we are doing. It was a very positive call. I assure the hon. Gentleman that we will work with Europe to ensure that both what we do and what is done across Europe supports the development of world-beating CCS.
David Mowat (Warrington South) (Con)
In his discussions with the EU Commissioner yesterday, did the Minister have the chance to raise the case of Germany? It burns about 25% more carbon per head than the UK, yet has just decided to go ahead with 23 unabated coal power stations, which will increase that differential still further.
Mr Hayes
I would never be so impertinent as to raise the policy of another sovereign state in such a call. However, my hon. Friend is right to say that the future of coal is clean coal. That is the way forward and it is why we are running our £1 billion competition. May I draw the House’s attention to the conclusion of the UK CCS cost reduction task force, whose members I met yesterday afternoon? It has said clearly that coal power stations equipped with CCS have
“clear potential to be cost competitive with other forms of low-carbon”
technology.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
In his evidence to the Liaison Committee earlier this week, the Prime Minister talked about the importance of CCS in relation to gas and coal generation, saying:
“Here are some funds. Let us have demonstrator projects and all the rest of it.”
The “all the rest of it” is the European Commission saying in correspondence to me that the UK did not secure up to €600 million of match funding because the Treasury would not confirm co-funding. It is also the Cabinet Office project assessment review—it is previously unpublished but I have obtained a copy—stating that “only” £200 million is “available”. How does the Minister expect there ever to be progress in developing commercial CCS if the Government’s financial commitment falls so far short of the Prime Minister’s warm words?
Mr Hayes
I can tell the hon. Gentleman, although I am in a sense disappointed to do so, because he will not have been privy to the information I gave the House until I provided it a few moments ago, that that was not the reason given by the European Commissioner—[Interruption.] The Commissioner did not say that to me in our telephone conversation. Indeed, the hon. Gentleman will know that in that first round no CCS project received support—there was some thought that a French project might, but in the end it did not. The second round will begin next spring and will be completed next year. I have made it very clear that we will work as a Government, with Europe, to ensure that our projects have the very best chance of receiving that additional funding.
Katy Clark (North Ayrshire and Arran) (Lab)
4. Whether it is his policy to decarbonise the power sector by 2030.
Nic Dakin (Scunthorpe) (Lab)
18. What discussions he has had with the Chancellor of the Exchequer on the implications of the autumn statement for investment in new energy infrastructure.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
My Department and the Treasury regularly discuss how to incentivise investment in new energy infrastructure. That is why we were able to reach agreement, paving the way for the introduction of the Energy Bill and the Chancellor’s autumn statement. These enable us to meet our legally binding carbon reduction and renewable energy obligations and ensure the investment required to bring affordable power to our nation.
Mrs Glindon
Given the recent announcement on consumer price rises, how will the Minister ensure that decisions over the next six months on investments in new nuclear generation capacity, before the Energy Bill is even on the statute book, will be made at the lowest possible cost to consumers?
Mr Hayes
The arrangements in the Energy Bill allow for precisely the eventuality that the hon. Lady describes: they allow final investment decisions to be made in concert with contracts for difference. She will know that we are in ongoing discussions about the Hinkley Point development. I cannot say too much about its commerciality, but she should know that we intend to proceed with that with alacrity and diligence. I am confident that new nuclear can play its part in an energy mix that is fit for the future.
Nic Dakin
Centrica recently pulled out of investment in a new energy plant at Scawby Brook, and the Siemens and Able UK renewables investment on the Humber, although hopeful, are still uncertain. How will the Government ensure that areas such as the Humber do not miss out on opportunities for investment and jobs because of ongoing uncertainty?
Mr Hayes
The Energy Bill brings a framework of certainty that will allow investors to be confident about the Government’s direction of travel. I am obliged to say that, frankly, those decisions could have been made five, 10 or perhaps 15 years earlier, given that we knew that our energy infrastructure was ageing and that we would have to rejuvenate it by means of legislation. The hon. Gentleman is right to make the case for the Humber. I have met one of his near neighbours to discuss that, and I will be happy to meet him and delighted to meet representatives of his community to discuss what we can do to assist his cause that we are not already doing.
Tim Farron (Westmorland and Lonsdale) (LD)
Cumbria has the fastest flowing water in England, a strong, well developed and world-class hydro-technology industry and strong public support for hydro-technology schemes, so will the Minister strongly consider energy infrastructure schemes for hydro-technology in Cumbria?
Mr Hayes
The hon. Gentleman is right that hydro-technology can also play a part. The critical point is that the energy infrastructure investment that has been discussed in the House this morning is central to our macro-economic plans. We are speaking not merely of tens of thousands of jobs, but of hundreds of thousands of jobs and new skills in his area and others. Given that I have offered to meet the hon. Member for Scunthorpe (Nic Dakin), I think that I should meet the hon. Gentleman, too, to discuss the specifics of his area.
Mr Speaker
That is tremendously generous of the Minister of State. I think that there is a glow of appreciation across the Chamber.
Sir Nick Harvey (North Devon) (LD)
What can the Minister do to ensure that adequate investment finance is available to marine energy and its attendant infrastructure? Is he aware that it is now more than eight years since a marine current turbine was trialled off the north Devon coast, which more than twice exceeded expectations for energy production but has not come to market because of a lack of finance? If he cannot make new finance available, can he rebalance existing finance away from 30-year-old wind technology and towards the new technologies that could drive forward the process of decarbonisation?
Mr Hayes
I do not want to take the opportunity to put the wind up anyone, so I will concentrate on the first part of the hon. Gentleman’s question. He is right that we need to look at all kinds of technologies to achieve the mix that we have described. He will be familiar with our work on green energy parks and will know that six of the eight major wave and tidal energy projects around the world are in this country. I know that the Environment Agency certainly believes that, because it told me so last night. We are investing in that significantly, but I will look at it again because it is absolutely right that we are at the cutting edge of technological change when that can contribute to the energy mix I have described.
Dan Rogerson (North Cornwall) (LD)
8. What steps he is taking to support the geothermal energy industry.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
14. What steps he is taking to ensure that the forthcoming capacity mechanism is not unduly biased towards large, centralised, fossil fuel generation.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
The capacity market is intended to ensure that we have adequate reliable capacity on the electricity system. It will be open to all reliable providers of capacity, including large centralised generation and other forms such as demand-side response, storage, and combined heat and power. We are putting in place tailored arrangements accordingly.
Mr Sheerman
Does the Minister not share my worry and concern that, in the context of the Energy Bill and every other measure, it does not matter that we have been told this morning that we have unanimity across the two Government parties, because there is no unanimity with the Chancellor? What he said in his autumn statement and what he said this week means that it is all about gas, gas, gas. I am in favour of shale; indeed, today’s Question Time has been destroyed by not having a proper announcement on and scrutiny of shale. The fact is that we now have a Government determined to go for gas with no balance in the energy economy at all.
Mr Hayes
As the hon. Gentleman knows, the intermittence of renewables and the relative inflexibility of other forms of generation mean that gas is necessary to provide flexibility. However, he is absolutely right that if we are going to make an argument for a mixed economy, because that provides the best chance of sustainability, we cannot put all our eggs in one basket. The Energy Bill, together with the levy control framework —which, as he also knows, provides £7.6 billion for renewables, carbon capture and storage, and nuclear—enables us to achieve just that mix.
Joan Walley (Stoke-on-Trent North) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Minister of State, Department of Energy and Climate Change (Mr John Hayes)
My hon. Friend is generous. I do have the wind beneath my wings. He will know that we issued a call for evidence. That has been completed and we are considering the outcome. He and the whole House, including the ministerial team, recognise that community buy-in and ownership, and communities shaping the developments in their area should lie at the heart of all that we do. We must not impose what people do not want on them.
Mr William Bain (Glasgow North East) (Lab)
Do the Secretary of State and the Minister of State, Department of Energy and Climate Change, the hon. Member for South Holland and The Deepings (Mr Hayes), agree with the recent report by Greenpeace and WWF, which states that investment in wind energy could create an additional 70,000 jobs, help us to meet our carbon reduction targets, and boost the economy by £20 billion a year by 2030?
Mr Graham Stuart (Beverley and Holderness) (Con)
What are the Government doing for those who are off-grid and use liquefied petroleum gas or oil-fired heating and have much higher bills than those on-grid? Those in rural areas suffer from poor support and funding for many public services, and they need extra help from the Government recognising their plight at this time.
Mr Hayes
I recently met representatives of the downstream industry to discuss that issue and we are indeed looking at competition, accessibility and price for those kinds of customers. I do not want anyone to be cold because they cannot afford the oil or heat they need, and the Government will take action to ensure that people are not cold or needy this winter.