Geothermal Energy: Clackmannanshire

John Lamont Excerpts

Monday 4th June 2018 Commons Chamber

[Luke Graham]

On district heating systems, yes. On sewage systems, I am not sure. That is something that we should explore, but when we look at the broader uses of the technology, certainly in energy and electricity production, as we have seen in other countries around the world, absolutely that can be done. There are exciting, direct uses of geothermal energy in countries such as Kenya, ranging from hydroponic farming to powering small communities. There are a number of exciting projects in operation, which is why it is important to run a pilot and secure investment so that we can realise the true potential of the technology.

While it is not often that Clackmannanshire has a competitive advantage over other local communities, we have a relatively unique geographical opportunity. However, there are more reasons to invest in Clackmannanshire. It suffers from high levels of deprivation, and a significantly high level of fuel poverty. Local authority surveys have identified the fact that one in three households in Clackmannanshire suffers from fuel poverty, rising to 49% among pensioners. Heat accounts for nearly half of energy consumption in Clacks and a third of its carbon emissions. Roughly 80% of that is consumed in homes and other buildings.

The local economy is vulnerable. It has a higher than average unemployment rate, the third lowest job density in Scotland, below average earnings, and of all the local authorities in Scotland, Clackmannanshire has the lowest rating for skilled qualifications. That is not to talk Clackmannanshire down. It may be the known as the wee county, but as I said in my maiden speech,

“it is not size but what you do with it that counts.”—[Official Report, 27 June 2017; Vol. 626, c. 524.]

I want to highlight some of the challenges in Clackmannanshire, but also give an idea of what a significant investment in the area would help to overcome. I want to look at the difference that such an investment could make in Clackmannanshire. It goes without saying that investment would bring valuable, skilled jobs to the area, and that is important, but it is more than that. Investment would help to develop spin-off businesses that would support the industry both directly and along the supply chain. We have already seen that. I was lucky at the weekend to be interviewed by the BBC, and local companies and local champions of geothermal have come forward in the past few days, keen to work with the Government and public and private sector bodies on a project not just in the county but in the wider region.

Developing geothermal energy in Clackmannanshire could see the area become renowned in the UK, not just as a leading low-carbon energy provider but for its energy innovation.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I am grateful to my hon. Friend for making such a powerful case for this initiative in his constituency. I am sure that there are other parts of Scotland that could benefit from his insight. What opportunities can he see for this initiative being delivered as part of the UK Government’s industrial strategy? Does he recognise that many projects could be delivered in Scotland as part of that overall initiative?

[Luke Graham]

I could not agree more; the industrial strategy is about having a stronger blueprint for the whole of Britain and it is important that the investment, especially in reserved areas such as energy, is spread throughout the United Kingdom in a fair manner to attract the true opportunities that are found in each individual area.

Developing geothermal energy in Clackmannanshire would make the county more attractive to investors, businesses and developers. By helping to establish a resilient, environmentally-friendly heating and energy system, it could provide affordable, low-carbon heating and energy to local households and businesses. Furthermore, by delivering estimated savings of 50% for the local authority, it would free up much needed additional funding to invest back into local services, which have faced substantial cuts.

The Department for Business, Energy and Industrial Strategy has stated that we need to move away from having one energy network towards having smaller, more regional networks. That is precisely what we can do and what we hope to do in Clackmannanshire. By reducing energy bills, it will help us to create a more stable, affordable energy market in the area, which is central to improving and maintaining living standards in the community. In turn, it will help Clackmannanshire to become more self-sustaining, allowing it to support businesses, improve educational opportunities, and tackle social inequalities and the fuel poverty crisis.

Geothermal energy is not the solution to every single issue experienced in Clackmannanshire, despite what I have said tonight, but it would be a significant step in the right direction. One of my biggest frustrations since becoming an MP almost a year ago to the day has been the “devolve and forget” approach that has been allowed to permeate since devolution nearly 20 years ago. However, energy is not devolved. Devolution does not mean separate and it should not act as a wall. Devolution was just a means to bring powers closer to the people who need them in order to deliver things better. This is still the UK Parliament and Scotland is still part of the UK. To be clear, without Scotland there is no United Kingdom.

Scotland has the infrastructure and expertise in place to lead the United Kingdom in geothermal energy and contribute towards the UK’s clean growth strategy. That is why I urge the Minister to put Scotland at its heart when considering Government investment and to put geothermal energy in Clackmannanshire at the forefront of that investment. Scotland has been at the forefront of every major industrial development of the United Kingdom, from the industrial revolution in the 18th and 19th centuries to oil and gas in the 20th and 21st centuries. It has the infrastructure and expertise to lead the UK, and putting the investment in now could be transformational for the area and for the wider UK.

There is no law stopping the UK Government investing directly in Scottish local authorities, least of all the devolution settlement, the various Scotland Acts or the Smith commission, especially when the right opportunity arises. This is the right opportunity—an opportunity to invest in and improve our renewable energy sector; an opportunity to lower our carbon footprint; an opportunity to tackle fuel poverty; and an opportunity to bring jobs, prospects and prosperity to one of the most deprived areas of Scotland. I urge the UK Government to grasp this opportunity and to let the people of Clackmannanshire lead the rest of Scotland and the United Kingdom in growing geothermal energy.

I make no apologies for keeping Clackmannanshire firmly in the minds of the UK Government and the decision makers who lead it, as I want to maximise the investment coming to the wee county and to my wider constituency of Ochil and South Perthshire from Westminster. Developing geothermal energy in Clackmannanshire has the potential to combine heritage with new technology to bring investment to the county, turning a so called negative legacy into jobs, training and long-term opportunities for the county. This is what I believe Government is for—not to deliver every job, but to ensure that every part of our country can take advantage of the opportunities afforded to it. I hope that the Minister will help Clackmannanshire achieve its potential this evening.