Oil Refining Sector

Luke Taylor Excerpts

Thursday 11th December 2025 Westminster Hall

[Sir Edward Leigh (Gainsborough) (Con)]

I thank my hon. Friend and constituency neighbour the Member for Brigg and Immingham (Martin Vickers) for securing this timely debate about Lindsey oil refinery, which employed many of my constituents. The closure is a disaster for our Greater Lincolnshire area. It is, I believe, a direct result of green policies that are no longer logical.

I am no climate change sceptic. I am prepared to have investment in green energy—we are world leaders in offshore wind in the Humber, are we not? We are doing our bit, but the Government are taking it to new heights. All ideologues are dangerous, but fanatical ideologues are the most dangerous of all, and that is what we have in our Secretary of State. We have these ludicrous targets; I commend the editorial in The Times today calling it “targetitis”. Originally, Theresa May arbitrarily set a limit of 2040. Where did that come from? Boris Johnson, in his bumptious, casual way, not considering the evidence, unilaterally cut it down to 2030. Where did that come from? All this is massively damaging.

I would not mind if we were actually making a difference to global warming, but we are responsible for only 1% of global emissions. According to some estimates, our total global emissions are less than China’s annual accrual. We are making absolutely no difference! China holds us in contempt. It is doing to us what we did to it in the 19th century. China is totally ruthless.

[Luke Taylor (Sutton and Cheam) (LD)]

Will the right hon. Member give way?

[Sir Edward Leigh]

I give way to the hon. Gentleman, who is the son of a very distinguished councillor in my constituency.

[Luke Taylor]

It is a pleasure to contribute to this debate. Together, the 100 smallest carbon-emitting countries represent more carbon emissions than China on its own, so if all those smaller-emitting countries make their own contribution it can make a bigger contribution to cuts than China. Does the right hon. Member not agree that those small measures add up to a huge difference globally?

[Sir Edward Leigh]

That may be a fair point. I said at the beginning of my speech that I am not a climate change sceptic. Everybody is prepared to do their bit.

I have already mentioned wind farms, but what about solar energy? In Lincolnshire we are prepared to have solar energy on our farmland, but in my constituency 16,000 acres of the most productive land in the entire country—enough land to feed the city of Hull every single year—is put under solar farms, with panels manufactured in China, destroying our ability to feed ourselves. There has to be a balance, but at the moment we do not have one. We are importing so much from our dear friends in Norway that they are opening 250 exploration wells.

This debate, secured by my hon. Friend the Member for Brigg and Immingham, is extremely timely. The closure of Lindsey oil refinery is a complete disaster. It employs many of our constituents and is vital for the whole of our industrial infrastructure. We need strong domestic refining capacity. The Secretary of State goes on about energy security all the time, but that would strengthen energy security at a time when we are already importing two thirds of our gas and increasing volumes of refined fuels.

I would not mind these green policies, but we are not actually contributing to tackling global warming; we are simply exporting carbon emissions to other countries. It is complete madness. If we were sensible about this, and if it were possible to get some sort of global recognition of the problem, maybe we could start to tackle it. Relying on foreign refiners means exporting jobs and value overseas while leaving Britain more exposed to global price shocks and geopolitical risks. Expansion of the UK refining sector protects thousands of highly skilled, well-paid jobs. It also supports an entire region and supply chain in engineering, fabrication, logistics and maintenance. Those are precisely the jobs that sustain industrial communities and create apprenticeships for young people.

Refining underpins every major industrial sector. Manufacturing, aviation, defence, logistics, agriculture and pharmaceuticals all depend on reliable supplies of fuels and petrochemicals. Allowing it to pass into decline would simply shift production to countries with weaker environmental standards.

Lindsey oil refinery was a major economic anchor for our area. We know that it was put into administration. I share the comments of my hon. Friend the Member for Brigg and Immingham: this is a national crisis in terms of national policy, which is wrong, and of local policy. The people of Greater Lincolnshire demand action from this Government, and they demand it now.

--- Later in debate ---

[Luke Taylor (Sutton and Cheam) (LD)]

It is a pleasure to serve under your chairship, Mr Western. I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this important debate, and all the Members who have spoken for their contributions. I declare an interest as the chair of the all-party parliamentary group for the future of aviation, travel and aerospace—we have done a lot of work on sustainable aviation fuel—and that I met representatives of Exolum, the International Air Transport Association, LanzaJet and the Tank Storage Association in preparation for this debate.

At times of great upheaval and change, it is tempting to look to political leaders, artists or other major cultural figures to get a sense of where the world is headed. That is certainly a popular approach among historians, but I think it misses something: the often pivotal role of engineers—and I say that not just because I am one myself, or was. It is not necessary to subscribe to an entirely materialistic view of history to recognise that engineers, no matter who they work for or where they work, are often at the vanguard of the kind of technological change that enables our wider political or social ambitions to be achieved. That was true at the cusp of the industrial revolution; it was true when the white heat of technology exploded the middle class in the ’50s; and it is true now, perhaps more than ever, as we embark on the mission to undo the damage to our environment that previous technological shifts have wrought. We must secure our energy supply so that we can withstand an ever more uncertain future, and transform our late-industrial malaise into a green, prosperous and abundant economy through a truly just transition.

Data from the oil and gas industry shows that it directly supports around 26,000 jobs across the UK and indirectly supports 95,000 more. These are largely jobs in offshore drilling, rigging, catering, scaffolding, onshore fabrication yards, anchor manufacturing and vessel maintenance, and there are more. It is also estimated that there are another 84,000 jobs among the hospitality workers, taxi drivers and others who serve industrial communities and are supported by them in turn. We have seen before what happens when there is a major industrial shift and we fail to support jobs and the communities they help to keep alive—from the closure of the pits to the ongoing crisis of British Steel. We must learn lessons from past deindustrialisations to avoid similar damage to communities today.

All policy makers should dedicate themselves to avoiding the traumatic manifestations of necessary—or, at the very least, foreseeable—moments. It is vital that any job losses in this sector are mitigated by reskilling and retraining with new green investment. However, right now in 2025, we are losing our traditional refining, chemicals and existing biofuel production capability and home-grown expertise. Complexity, departmental misalignment and a lack of pragmatism in public policy are holding back the existing and future fuels sector. The Government have the power to solve those things. I hope that today we can suggest and agree some constructive next steps.

Earlier this year, Liberal Democrat colleagues and I recognised the importance of the Government’s Sustainable Aviation Fuel Bill. Sustainable aviation fuel, or SAF, will be one of the main enablers of aviation’s transition from polluting liquid fossil fuels to a future of hydrogen, battery and hybrid zero emission power plants. As part of that transition, SAF has a huge role to play in creating new green jobs and delivering on our energy security goals.

Local production creates jobs, improves resilience, reduces import dependence and stabilises prices, but without efficient resource allocation and strategic investment, future refinery closures could create severe supply bottlenecks and undermine our energy independence. It is equal parts encouraging that there is consensus among the serious political parties in this country about the need for transition and energy security, and concerning that from different ends of the spectrum, the Greens and Reform are either wilfully ignorant or unwilling to accept that supporting the oil refining industry to transition is critical.

The Greens seem willing to turn their back on any of the major technologies involved in the just transition of our fossil fuel infrastructure. They are locked into the pursuit of an ideological purity that sees those companies and producers solely as the problem and not as part of the solution. Reform’s static, stagnant and staggering belief that net zero is either bound to hurt working people or just bad in and of itself, only gives them the self-satisfied and smug smile of someone who thinks they know all the answers, but that could not be further from the truth.

[Lee Anderson]

The hon. Member talks about hurting working people. Does he not agree that the closure of the oil refineries hurts working people?

[Luke Taylor]

I completely agree. That is why we are talking about a transition. It may well bring shivers to the hon. Member’s spine to talk about transitions, but it is critical that we talk about them in a reasonable and sensible way, and about how we look forward to the future rather than to the past. Reform’s approach is equally dogmatic and damaging as that of the Green party and has already been found wanting in practice in local government.

We can only make the transition a reality if we grasp the opportunity to utilise our existing oil refining infrastructure to turn to the chemistry of the future, with a diverse set of feedstocks from a wide range of supply points. We should be working with industry on delivering that, but industry leaders tell me that on the critical steps that the Government should be taking, they are going ignored or unheard.

Let us take bioethanol, for example. At the start of 2025, the UK bioethanol sector provided 895 million litres of renewable fuel production capacity and thousands of direct and indirect jobs. It was also a significant market for British agriculture and providing critical co-products such as carbon dioxide for the NHS, and for the food and drink sector. As of December 2025, the industry has been halved, following the US-UK trade deal.

An immediate solution would be to transition that bioethanol to SAF, as the alcohol-to-jet technology being developed in the UK can convert it into jet fuel. Under the SAF mandate rules, however, bioethanol readily produced in the UK—sustainable enough for a car engine—has been deemed not sustainable enough for a jet engine. Will the Minister consider the request of industry to support the UK’s bioethanol industry to continue operations and simultaneously support SAF production by allowing bioethanol use under the SAF mandate? The upcoming call for evidence on the role of crops under the UK SAF mandate should be released urgently, and a pragmatic approach taken.

Similarly, opening hydrogen storage subsidies to include liquid fuel infrastructure would ensure that existing assets could play a role in the hydrogen economy. Hydrogen storage is critical, but hydrogen production and usage are also critical to our future renewable goals and to providing the supply of SAF that will be required to decarbonise aviation. DFT rules state that, to make compliant SAF in the UK, hydrogen must be green hydrogen—rightly—and cannot be supported by the hydrogen production business model, a scheme established by DESNZ to get UK hydrogen production off the ground. That alone is not controversial. However, there is no green hydrogen available in the UK that will not be supported by the HPBM, which means that a portion of SAF using these renewable molecules will be uncompliant and, essentially, very expensive fossil jet fuel, despite it actually being green. I convey to the Minister the ask from industry that the DFT and DESNZ should be urgently working together to ensure interconnectivity with hydrogen policy and SAF policy, so that SAF producers are not penalised for using domestic industry?

[Euan Stainbank]

Project Willow also recommended the delay or lifting of the cap on hydrotreated esters and fatty acids. Would the hon. Member agree with that approach being taken? This is the project and report on the future industrial options at Grangemouth.

[Luke Taylor]

I know that the hon. Member has a lot of knowledge on this issue. I think that looking at all the options that maintain capability is critical. What might come out of this is an ask for this Minister— or potentially the aviation Minister, the hon. Member for Selby (Keir Mather)—to sit down with our APPG, in which there is a lot of expertise, to talk about some of the ways that we can maintain capability but also achieve our transition and net zero goals.

A pragmatic approach could be not to apply the rules to smaller users of hydrogen—for example, where hydrogen accounts for less than 5% of feedstock—while a longer time is taken to consider the impacts for large-scale hydrogen users.

I now turn to our wider ecosystem of logistics infrastructure. Pipelines, storage and distribution networks are essential for connecting supply and demand, especially as the market shifts towards sustainable fuels and as we look to improve our energy security. For example, Exolum, which runs a 2,000 km onshore pipeline network that delivers 40% to 50% of the aviation fuel used for UK flights each year, is transforming its aviation fuel pipeline network to supply SAF.

To unlock further investment in the infrastructure and ensure a just transition, industry is calling for long-term policy signals, such as extending and increasing renewable fuel mandates; targeted incentives like business rates relief and payment holidays for new infrastructure; inclusive subsidy schemes for hydrogen storage; and fast-tracking obligations for renewable liquid heating fuels.

At present, most support for fuel infrastructure is directed towards large-scale production projects. Conversely, investment in storage and distribution infrastructure is increasingly undertaken at an operator’s own risk and often ahead of immediate market need. That imbalance is amplified by a business rates system that can disincentivise new investments and high-end capital projects—including energy transition initiatives—especially when the investment is by overseas companies likely to be looking for more cost-effective placement of funding in countries with more generous and strategic policies. How will the Minister ensure that policy and investment frameworks can support storage and distribution infrastructure, thereby enabling the development of a future-ready energy system, capable of responding to evolving market conditions and minimising supply chain risks?

The Liberal Democrats urge the Government fully to grasp the opportunities that our industrial capacity and workforce capability offer our country, to lead the world in a transition to next-generation fuels and energy. It is in our blood and our tradition as a country to grapple with these big technological questions, so it should be up to us to show what real leadership on the just transition looks like—not just because great feats of engineering are impressive in their own right, which they are, but because a whole generation of people whose lives and careers have been shaped by our oil refineries and wider energy sector, and future generations, are counting on that leadership. In recent years, the Conservatives abandoned it. We urgently need to get it back and provide stability for the communities most affected.

Home-grown, local renewable energy and fuels can be clean, cheap and popular, and they embed resilience. The Government must work with industry because striving for theoretical perfection, rather than ambitious but deliverable policy, risks choking the sector and neutering this revolution. Our engineers and industry stand ready to deliver, as they have done time and again, the greener economy that we need and that communities up and down the country deserve.

Heathrow Substation Outage: NESO Review

Luke Taylor Excerpts

Wednesday 2nd July 2025 Commons Chamber

[Mr Deputy Speaker]

I call the Liberal Democrat Front-Bench spokesman.

[Luke Taylor (Sutton and Cheam) (LD)]

This report is an utterly damning assessment of our national resilience, this time through decay but also through a lack of readiness as the climate crisis changes the dynamics, with old equipment operating at higher temperatures just as the loads for climate control and air conditioning are at their peak. The British people will rightly be alarmed that the problem that caused this substation failure was known as long ago as 2018, but there is a much wider point here. Beyond the technicalities of this failure, the resilience of critical national infrastructure has been neglected for far too long.

As an engineer, I came to this place for precisely this reason: we are too short-termist and too narrow in our vision. We cannot possibly expect to remain a world leader in infrastructure if we cannot future-proof and seriously invest in the resilience of our assets. Building and maintaining infrastructure might not get pulses racing. There is no ribbon to cut when something just continues to operate efficiently, but that long-termism is an ideology that we should all get behind if we are serious about Britain’s future. The report outlined the many missed opportunities to fix the issues at the substation, and we will all have to look seriously into Ofgem’s consequential investigation into National Grid once it is published.

This is not just about grid resilience, though. This time it was a fire caused by a fault, but next time it might be a deliberate cyber-attack or an act of terrorism, which could have a more disastrous impact. We must look beyond the short term, with a strategic and long-term plan to join up national infrastructure and make it safe and reliable for all. The Government must bring about a strategy and act quickly to review the resilience of all similar assets, including every UK airport—they are all critical to our national economy and our society.

With that in mind, can the Minister confirm whether an assessment has been made of the likelihood of a repeat of this incident, at Heathrow and at all other pieces of critical national infrastructure? Also, are the Government taking this opportunity to finally pick up the National Infrastructure Commission reports from 2020 and 2023, which were ignored by the previous Government, and the report from 2024, which was not implemented quickly enough, and to implement standards and frameworks for resilience in key sectors such as aviation, telecoms, water and energy, which will future-proof our ageing infrastructure to make it reliable and safe?

[Michael Shanks]

The hon. Gentleman is absolutely right to broaden this beyond the electricity system and North Hyde to take in wider questions around critical national infrastructure. He is also right about investing in the future. I always think that grids and networks set the heart racing a little faster, but that is just me. This is important, and this Government are investing in this infrastructure; just this week Ofgem announced record investment in it. I hope, given the importance of this statement, that Members on all sides of the House will recognise the importance of that investment.

On the points around wider resilience, the Cabinet Office is leading on trying to bring together what I think it is fair to say has been too fragmented a landscape in resilience across Government. My Department is responsible for a number of key risks in the national risk register. It is right that the lead Departments have expertise in certain areas, but if that information is not shared coherently across Government, we increase the chance of not getting the answers right. A lot of work is being done in that regard. We are also looking at how we share data across all sectors of critical national infrastructure within Government. We will say more about that in the resilience action plan, which the Cabinet Office is working on at the moment. Of course, the 10-year infrastructure strategy is also about how we will invest for the long term in the infrastructure that keeps our country running.

Great British Energy Bill

Luke Taylor Excerpts

Consideration of Lords amendments
Tuesday 25th March 2025 Commons Chamber

[Pippa Heylings]

I completely agree. The Great British Energy Bill gives a statutory steer that helps us have those long-term plans.

The clean energy transition has to be done with communities, not to communities. I commend the Government for committing an additional £5 million to the community energy fund, bringing certainty at least to its short-term future.

Lords amendment 1 also addresses community benefits, which are critical for taking people with us on this pathway to the energy transition. If communities are to host energy infrastructure, whether for onshore wind or large-scale solar farms, those benefits have to go beyond token gestures such as roofs for scout huts or some apprenticeships. In Scotland, for example, community benefit is worth £5,000 per installed megawatt per year. This means that a controversial large-scale solar project in my constituency, such as the Kingsway solar farm, could provide £2.5 million annually to the local community. That is the scale we should be talking about, and it has to be the community that determines how and where that money is spent.

Lords amendment 12 is also a vital addition to the Bill, requiring GB Energy to keep its impact on sustainable development under review. Credit is due to Baroness Hayman, who fought tirelessly in the other House to ensure that sustainability is embedded in our energy transition through that amendment. We welcome the assurances we have received that in the updated framework agreement, not only will the local economies of coastal communities be taken into consideration, but there will be an explicit climate and nature duty for GB Energy. GB Energy has to consider economic, environmental and social needs, ensuring that future generations can meet their needs.

I would have liked to discuss amendment (a), in the name of the hon. Member for Rotherham (Sarah Champion), and amendment (b), in the name of the hon. Member for Leeds Central and Headingley (Alex Sobel), both to Lords amendment 2. Modern slavery is a barbaric practice that should have been eradicated long ago. We look to the promise of our green energy transformation, but it cannot take place at the cost of human rights abuses across the world.

Research from Sheffield Hallam University has directly linked China’s labour transfer programme to the global solar panel supply chain. China produces 40% of the world’s polysilicon and 80% of its solar panels, and right now, 2.7 million Uyghurs are subjected to state detention and forced labour. It is incomprehensible that the Government are seeking to vote down an amendment that would withdraw GB Energy investment from supply chains tainted by forced labour. GB Energy has to set the standard, not muddle along.

There is nothing sufficiently robust in the Bill to ensure that there is no forced labour in this supply chain. The solar taskforce does not have the mandate to ensure that. As we have heard, the Procurement Act 2023 cannot address the issue. This should be an issue not just for the energy sector. The health sector has shown leadership by addressing the matter in the Health and Care Act 2022. The Great British Energy Bill is a key piece of legislation, and measures on forced labour should be part of it.

[Luke Taylor (Sutton and Cheam) (LD)]

This is not just about the practicalities of the need to include these measures. Is it not essential that we show the public that the measures we are promoting to achieve net zero—a cause for which there is overwhelming public support, notwithstanding some parties’ attitudes to our need to get there and when—are not tainted by human rights abuses?

[Pippa Heylings]

I completely agree. That is why the Liberal Democrats will continue to call for restrictions on trade with regions where abuses take place, including Xinjiang, and advocate for Magnitsky-style sanctions against individuals and entities involved in Uyghur persecution. This is about more than Britain. It is about playing our part conscientiously in a global movement to see all human rights abuses stopped.

Warm Home Discount

Luke Taylor Excerpts

Tuesday 25th February 2025 Commons Chamber

[Miatta Fahnbulleh]

My hon. Friend is completely right. We are committed to working with industry on upgrading our homes. We believe that that is the way to drive down bills, but we need to make this as easy as possible for consumers across the country. We are working with industry and across the piece to deliver at pace.

[Luke Taylor (Sutton and Cheam) (LD)]

I welcome many of the measures in the statement, although I echo the request from my hon. Friend the Member for Bath (Wera Hobhouse) that we consider decoupling electricity and gas prices; that would make such a difference. In 2023, Sutton council was blocked by the opposition Conservative group from partaking of an EU grant to help upgrade some of our council houses to energy performance certificate rating C. I welcome the warm homes social housing fund, but I encourage the Minister and the rest of the Government to increase the amounts available in these funds, so that we reward as often as possible councils that are ambitious to provide better, warmer homes for their residents.

[Miatta Fahnbulleh]

We are committed to working with local and regional government. We are increasing the support provided and are ensuring that it is long-term support, because we agree that the route to insulating lots of homes is through partnerships with local and regional governments, to deliver homes that are warmer and cheaper to run.