Surplus Carbon Emissions

Debate between Lord Geddes and Lord Callanan

Wednesday 27th March 2024 Lords Chamber

[Lord Callanan (Con)]

As we debated extensively last night, it will have a negligible impact.

[Lord Geddes (Con)]

My Lords, following up the supplementary question from the noble Lord, Lord Foulkes of Cumnock, does noble friend agree that the Scottish Government, and indeed the British Government, could well add tidal power to their list?

[Lord Callanan (Con)]

My noble friend is relentless in his pursuit of tidal. He is right; it is an important component. It is not yet at scale; it is at a relatively small scale of development, but we supported it under the previous CfD round, and I am sure that tidal has a bright future ahead of it as part of our wide energy mix.

Biomass: Power Generation

Debate between Lord Geddes and Lord Callanan

Wednesday 13th March 2024 Lords Chamber

[Lord Callanan (Con)]

I do not agree with the noble Baroness—I often do not agree with her. This is not a business scam. It is actually bill payers’ money, not taxpayers’ money, but we spend it on a number of different sources, including those mentioned by the noble Lord, Lord Birt. It is not an either/or equation; we need a variety of different sources of fuel for our electricity and our energy uses. If the energy crisis taught us anything, it is the importance of not relying on one particular source. Yes, we need wind, solar, biomass, nuclear and some gas-fired generation in the short term. We need a resilient energy mix across all the different sources.

[Lord Geddes (Con)]

My Lords, on the general subject of renewable energy, in the announcement yesterday of two new gas-fired power stations, an announcement was also made that there were times when renewable energy was not available to generate power. Does my noble friend agree that this simply is not true? Tidal power is constantly available.

[Lord Callanan (Con)]

The noble Lord has asked me about this a number of times. As I have said to him, we are supportive of tidal power and are allocating funds to its development through the various CfD auctions. But I think he will recognise that it is not yet available at scale and in the quantities we would need. We are very proud of our renewable resources: almost 50% of our electricity production is now from renewables; we have the five biggest wind farms in the world; we are easily the biggest producer in Europe; and we are seeing lots of applications for solar development. Renewables are great, but it remains the case that they are not available all the time; we need more storage and back-up, and need other sources as well.

Hydrogen Heating

Debate between Lord Geddes and Lord Callanan

Monday 11th December 2023 Lords Chamber

[Lord Callanan (Con)]

I think the CMA is looking into some of the claims. Chancellor, it is a complicated area, because you can blend hydrogen into the existing gas network and that will work perfectly satisfactorily with all existing gas appliances. In that respect, all appliances are hydrogen-ready. But I am sure Ofgem will want to look at the full implications of that as well.

[Lord Geddes (Con)]

When my noble friend helpfully lists forms of alternative renewable energy, could he be kind enough to include tidal?

[Lord Callanan (Con)]

I know my noble friend feels very passionately about this. As I have said, we allocated some contracts for difference in the last round for tidal. I am sure we will want to do so in the next round again, provided the bids are competitive—but it does contribute a relatively small part of our energy mix.

Carbon Capture and Storage Infrastructure Fund

Debate between Lord Geddes and Lord Callanan

Monday 16th October 2023 Lords Chamber

[Lord Callanan (Con)]

My Lords, this makes me think that we cannot win on this. One part of the Opposition does not want to award these contracts at all and the Labour Party thinks we should have done it earlier. The reality is that we are proceeding with negotiations. It is our aim to have the contracts let for the first 10 projects by quarter 3 of next year. This is a really exciting technology, but we need to do the negotiations properly and get maximum value for money for the taxpayer from what is an emerging new industry.

[Lord Geddes (Con)]

Can my noble friend bring the House up to date on the Government’s support for tidal power?

[Lord Callanan (Con)]

My noble friend is dogged in his pursuit of this, and I have answered his question before. As he knows, under the last contracts for difference round, a number of tidal projects were successful in receiving funding.

2030 Emissions Reduction Target: Heating

Debate between Lord Geddes and Lord Callanan

Tuesday 5th September 2023 Lords Chamber

[Lord Callanan (Con)]

Indeed we are. The situation in France and for ourselves is very different, because France has not had the availability of domestic gas that we have had over the years. Nevertheless, I agree with the noble Baroness’s point: we need to expand the number of heat pumps being installed. In fact, we are already doing many of the measures that she outlined.

[Lord Geddes (Con)]

My Lords, would my noble friend please put greater emphasis on the development of tidal energy, which would greatly reduce carbon emissions? I think he will tell us that the infrastructure is extremely expensive; that is true, but thereafter it is utterly free and totally predictable.

Cleaner Energy Technologies

Debate between Lord Geddes and Lord Callanan

Tuesday 14th March 2023 Lords Chamber

[Lord Callanan (Con)]

Well, if the noble Baroness is referring to the legally binding carbon budgets, of course by their very nature they are legal targets and we have to meet them. We have met all our carbon budgets so far—in fact, we have exceeded them—but of course as we go on it gets more difficult. We have lots of ambitious policies to continue rolling out renewables and other carbon-reduction technologies, but we will respond to the CCC report in due course.

[Lord Geddes (Con)]

My Lords, not unexpectedly, I ask: “Tidal power?”

[Lord Callanan (Con)]

Yes, well, however many times the noble Lord asks me that question, he gets the same answer. We are supporting tidal stream technology under the latest CfD round—and of course we keep the technology under review and, if the costs come down, we will want to continue to support it and roll out further projects.

Carbon Budgets: Methane Flaring

Debate between Lord Geddes and Lord Callanan

Thursday 9th March 2023 Lords Chamber

[Lord Callanan (Con)]

I am happy to arrange a briefing with officials for the noble Lord if he would like, but the technical difficulties are, first, technological, in that it requires a lot of new infrastructure and pipework to be installed, and some of the facilities that flare are oil platforms that do not have facilities to pipe the gas to shore. Secondly, there are huge economic costs associated with it; obviously, some of the infrastructure goes back to the 1970s.

[Lord Geddes (Con)]

My Lords, would this problem not be greatly reduced if we put more emphasis on tidal energy?

[Lord Callanan (Con)]

My noble friend is dogged in his determination to get tidal on the agenda. I agree with him that we need more renewable energy, and we have allocated a number of CfD contracts to different forms of tidal energy.

Renewable Energy: Generation Licences

Debate between Lord Geddes and Lord Callanan

Tuesday 13th December 2022 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness raises a good point. We are seeing a total reconfiguration of the grid away from large nodes, such as coal-fired power stations, to a much more diversified system of generators. That requires massive configuration of the grid, which is extremely expensive and, I might add, politically controversial. Many people do not want new pylons, et cetera, going through their neighbourhoods. Nevertheless, work is ongoing to reconfigure it. Considerable sums are being invested, but clearly we need to do more in that area.

[Lord Geddes (Con)]

My Lords, I have asked my noble friend this question before, and to an extent it follows up the question from my noble friend Lord Forsyth. Where are we with tidal power?

[Lord Callanan (Con)]

Tidal power is an interesting technology. A number of schemes are being rolled out. For the first time ever, in the last CfD round a number of schemes were awarded licences. We need to continue supporting and developing it, but we must not run away with the idea that this will be a long-term, sustainable solution for large amounts of power. At the moment, it is on a relatively small scale. We need to continue supporting it, and we will.

Energy Bill [HL]

Debate between Lord Geddes and Lord Callanan

Committee stage
Wednesday 7th September 2022 Lords Chamber

[The Deputy Chairman of Committees (Lord Geddes) (Con)]

We come to Amendment 41. Lord Callanan?

[Lord Callanan (Con)]

Moved formally. No! I will speak to it.

Net-zero Test for New Policies

Debate between Lord Geddes and Lord Callanan

Tuesday 11th January 2022 Lords Chamber

[Lord Callanan (Con)]

I understand the point that the noble Baroness is making—I know that she is very passionate on this subject, and we have debated it many times—but we have the most ambitious net-zero goals of all of the G7. The noble Baroness puts her head in her hands, but that is true. Of course, you could always argue that we should go further or faster, but that would be expensive and would affect our competitiveness. At the end of the day, the UK is responsible for 1% of worldwide emissions. We need to make sure that we go forward in a co-ordinated manner with other countries across the world and approach this problem together.

[Lord Geddes (Con)]

My Lords, before Christmas, I fed my noble friend the Minister what he took as a helpful line. I will try to do it again: where are we with tidal power?

[Lord Callanan (Con)]

The answer I gave my noble friend then was that tidal power is included in the latest contracts for difference round; I think the figure is £20 million that we propose to expend on it. My noble friend makes a good point that there are some very feasible tidal power projects, but we need to be realistic—tidal power will not contribute more than a small percentage of our power needs.

Drax Wood Pellets

Debate between Lord Geddes and Lord Callanan

Monday 13th December 2021 Lords Chamber

[Lord Callanan (Con)]

At the risk of repeating myself, I think that the noble Baroness is wrong on the points that she makes. The process is independently audited and checked, and we have sent officials out to southern USA to ascertain that the claims are correct, and all the material burned in Drax is sustainably produced.

[Lord Geddes (Con)]

Since the noble Lord, Lord West, has led us slightly wider on the Question, can I ask why there is not more emphasis on tidal power?

[Lord Callanan (Con)]

The noble Lord gives me a great cue to talk about the contracts for difference scheme that we launched just this morning, which for the first time allows tidal power to bid. I completely agree with the noble Lord, and we are doing it.