Jet Zero Council

Maria Miller Excerpts

Wednesday 14th October 2020 Westminster Hall

[Mrs Maria Miller (in the Chair)]

I remind Members that there have been some changes to normal practice in order to support the new call list system and to ensure that social distancing can be respected. Members should sanitise their microphones using the cleaning materials provided before they use them and respect the one-way system around the room. Members should only speak from the horseshoe and can only speak if they are on the call list. That also applies to this debate, for which we are fully subscribed. Members are not expected to remain for the wind-ups. I remind Members that there is less of an expectation that they stay for the next two speeches following their own once they have spoken to make sure we manage attendance in the room.

[Andrew Selous (South West Bedfordshire) (Con)]

I beg to move

That his House has considered the work of the Jet Zero Council.

May I say what a huge pleasure it is to serve under what I understand is your first Westminster Hall debate, Mrs Miller? It is also great pleasure to have this debate responded to by my the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts). I am particularly pleased to see him come on to the Front Bench, because it is the first parliamentary engagement that I have had with him. I know he will do us all proud and cares a lot about this issue. I am also grateful to Mr Speaker for allocating me this debate. London Luton airport is close to my constituency and is an important source of jobs for my constituents.

The UK has the third biggest global aviation network in the world, and we are a leading aerospace nation. Aviation contributes more than £52 billion a year to GDP and the sector directly contributes 230,000 jobs, which are largely high value and high skilled, in airframe development and manufacturing. All of that will be a continued requirement for the industry as it decarbonises. At the moment, however, as a result of the pandemic, there has been a massive reduction in the number of flights, but passenger numbers are expected to recover to 2019 levels by 2023-24 or possibly earlier, depending on the progress of scientific breakthroughs in dealing with the virus. Industry projections also show passenger numbers rising by 65% from 2018 levels to 2050. The UK also has a legally binding net zero target for 2050, and we need to reconcile that vitally important target with the projected increase in demand. Progress has already been made: between 2005 and 2016, Sustainable Aviation member airlines carried 26% more passengers and freight, with carbon dioxide emissions rising by 9%. That is still 9% too much, but it shows that improvements are possible.

Speaking to the International Gas Turbine Institute last September, the Prince of Wales said

“the need to decarbonise flight must remain at the top of the agenda”

and issued a challenge to do so by 2035. In February this year, Sustainable Aviation members made a public commitment to reach net UK aviation carbon emissions by 2050, becoming the first national aviation body anywhere in the world to make such a pledge. In June, the creation of the Jet Zero council was announced, with the objective of developing and industrialising zero-emission aviation and aerospace technologies. The first meeting was held in July. The council has an impressive membership of the great and the good of the aviation and aerospace sectors, and given its importance for aviation and aerospace employment, I think it would be sensible to have a worker representative on the council as well.

It could be said that the scale of the challenge is too big and that we should all fly less and that our aviation and aerospace sectors should contract. I disagree. Instead, we should harness our huge strength in aviation technology and engineering to find new solutions to allow us to fly without wrecking the planet. I want our constituents to carry on enjoying the pleasure and freedom of a sunny holiday, and I want UK exporters to find new markets for British business all around the world as they continue to fly on business travel.

But it is important that all that is done responsibly, so that we can fly with a clear conscience. That is why the work of the Jet Zero Council is so important, and why this debate matters so much. Not only do we need to turbocharge the science and technology to reduce greenhouse gas emissions from aviation, we also need to ensure that the United Kingdom is at the forefront of sustainable aviation so that the high-skilled, high-wage jobs of the future are provided here. We cannot leave that to chance, as has unfortunately happened with other technologies in the past. Germany, France, Norway and Indonesia are already making progress in that direction.

Calor’s parent company, has already partnered with the Dutch airline KLM to build Europe’s first dedicated plant to produce sustainable aviation fuels in the Netherlands. A by-product of the plant will be low-carbon fuel for homes and businesses in the rural off-gas grid. Sustainable aviation fuels are a here-and-now solution using proven technologies that can be used in existing engines and transport pipelines, requiring no modifications to aircraft or refuelling infrastructure. At present, sustainable aviation fuels are the only option that can decarbonise long-haul flight, from which two-thirds of UK aviation CO₂ emissions currently arise. It is important to note that second-generation sustainable aviation fuels do not rely on feedstocks that should be used for other purposes. Current sustainable aviation fuel is developed from sustainable feedstocks, waste oils, fats, greases, industrial gases and—I am told—even municipal solid waste as well as agricultural and forestry residue.

The UK’s first commercial sustainable aviation fuel facility, Alt Alto in Immingham, received planning permission in June. It is the first of its kind in Europe and is a collaboration between Velocys, British Airways and Shell. Other UK facilities such as the LanzaJet project in Port Talbot are also under development—it seems to help to have a Californian or holiday-sounding name for these new sites. Sustainable aviation have asked for £429 million in Government-backed loan guarantees to support the establishment of the first flagship sustainable aviation fuel facilities in the UK. A grant of £50 million is being sought to move this work to higher technology-readiness levels, and to enable providers to move to commercial scale. A further £21 million is being sought to establish a UK clearing house to enable sustainable aviation fuel testing. By 2037, there could be 14 sustainable aviation fuel production facilities in the UK, which would create 13,600 jobs and add £1.9 billion to GDP when overseas export opportunities are included.

Alt Alto Immingham hopes to be producing fuel by 2025 and many of these jobs would be in our industrial heartlands, contributing to levelling up in areas such as south Wales, the north-west, Teesside, Humberside, St Fergus, Grangemouth and Southampton. There will also be a boost to the rural economy where feedstocks for facilities would be processed before final upgrading at an industrial plant. Electric and hydrogen technologies also have great potential to deliver zero emission short and medium haul flights.

The world’s first hydrogen-powered flight has taken place in God’s own county of Bedfordshire. As part of the HyFlyer, project, ZeroAvia commissioned at Cranfield University the first on-site hydrogen fuelling system capable of producing green hydrogen used to power zero-emission flight. In 2023 ZeroAvia will bring to market the first hydrogen-electric powertrain capable of flying aircraft with up to 19 seats in a certifiable configuration design for a range of airframes currently in use. It has the potential to generate significant new employment and investment in the aerospace sector. For example, easyJet, a major company at Luton airport, continues to work with Wright Electric on an all-electric 186-seat passenger jet, and only last month Airbus unveiled designs for hydrogen-powered aircraft that could be flying by 2035.

Technology improvements through fleet upgrades represent the largest long-term aviation decarbonisation solution in the sector. The Aerospace Technology Institute wishes to see funding doubled to £330 million a year to enable the UK to become a world leader in developing more efficient engines as well as hybrid electric and hydrogen aircraft. Every £1 of Government investment in aerospace research and development brings in another £12 in private research and development spending—pretty impressive leverage.

Airspace modernisation also has an important role to play in making use of aircraft performance capability and reducing emissions and noise. Today’s advanced aircraft still rely on old navigation technologies because the airspace structures they use were designed for the fewer slower aircraft flying in the 1950s. The new Whittle laboratory in Cambridge, and the national centre for propulsion and power that it will house, will ensure that the UK leads the development of zero-carbon flight and will play a central role in supporting FlyZero.

However, as I said earlier, the challenge from overseas is there. The German Government are already planning a large investment in a low emissions aviation research centre that will operate in direct competition with the new Whittle laboratory. The new laboratory will ensure that the new technologies are used across the industrial networks in Newcastle, Lincoln, Derby, Bristol, Glasgow and Lancashire as it partners with Rolls-Royce, Mitsubishi Heavy Industries, Siemens, Dyson and the Aviation Technology Institute. The new laboratory will co-locate with the aviation impact accelerator, the design of which is based on what Cambridge has learned from Dame Ann Dowling’s silent aircraft initiative. The residents of the villages of Kensworth, Studham and Whipsnade in my constituency will be particularly pleased to learn about that, because they are all under the flight path of London Luton airport.

The aviation impact accelerator will help speed up the delivery of new technology and scale up the infrastructure, investment and policy necessary for that. The new Whittle laboratory has already raised £23.5 million from its industrial partners, but it needs an additional £25 million from the Government to commence building in February next year. I hope that may be possible, because in the briefing in which the Secretary of State for Transport announced the formation of the Jet Zero Council, he said he was

“excited about a Cambridge University and Whittle labs project to accelerate technologies for zero-carbon flight”.

To speed up the council’s work, the Government should consider an airline scrappage schemes, with airlines encouraged to buy less polluting jets when available and take more polluting models out of service.

It is good to see hon. Members in the Room today. I look forward to their contributions and hope we have cross-party support for this important initiative.

[Several hon. Members rose—]

[Mrs Maria Miller (in the Chair)]

To ensure that all Members here and on the call list have the opportunity to speak, I advise people to take seven to eight minutes, if that is okay, so that we have enough time to move to wind-ups just before half-past three.

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[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mrs Miller, and I thank the hon. Member for South West Bedfordshire (Andrew Selous) for his contribution and for setting the scene.

I have had so much email correspondence from different constituents about this that I took the opportunity to make a contribution which, obviously, will be on the United Kingdom of Great Britain and Northern Ireland aspect, but very much coming from Strangford as well, because I have numerous aerospace industries in my constituency. Therefore, if the Government take forward this strategy, which I hope they will, it will benefit my constituency and, indeed, many others. This matter is essential, and I am very thankful to the hon. Gentleman for securing the debate.

I am pleased to see the Minister in his place, and to put that on the record. I understand that this is his second debate in Westminster Hall. I missed his first one—I do not know how I did that, but there we are! I was not in the Chamber, so I was probably engaged elsewhere. As I said, however, I am pleased to see him, because we have a personal friendship and know each other. For the record, I have every confidence in him to take on the mantle for all of us here together, collectively, and ensure the delivery, so that we can all benefit across the whole of the United Kingdom of Great Britain and Northern Ireland.

I have been contacted by Sustainable Aviation. Members will know about that organisation and be aware of the background. They have provided a detailed briefing about the methods that Government could employ to obtain the target set by Jet Zero. They highlighted that between 2005 and 2016 Sustainable Aviation’s member airlines carried 26% more passengers and freight, but they only grew CO₂ emissions by 9%. That is a clear differential that has to be addressed. They have a methodology, of which I am sure the Minister is aware, that I hope he will adopt. That would complement what was said by the hon. Member for South West Bedfordshire, who set the scene, and the other contributions that have been made from both sides of the Chamber.

The industry must be noted and celebrated. In a world where many appear to exist only to find fault—society seems, in many cases, to be like that—I wish to congratulate the industry for doing what it can to make sustainable changes. Let us give credit where credit is due for the direct and positive attitude it has adopted to try and make sure we can move in the correct direction.

Other Members have mentioned APD. The Democratic Unionist Party is committed to that and has had many discussions with Government about it, although maybe not with this Minister. To be fair, we did have a discussion and a Zoom meeting about a fortnight ago, and APD was mentioned by my hon. Friend the Member for Belfast East (Gavin Robinson)—I just recalled that now. APD is important for us, and the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) talked about it as well. Many regions of the United Kingdom can gain from it.

My friend, the hon. Member for South Cambridgeshire (Anthony Browne), is keen on the idea of using hydrogen to tackle the issue. He hopes that companies can be equipped with the skills and the interests to provide an opportunity to develop that.

The hon. Member for St Austell and Newquay (Steve Double) mentioned issues about electric energy. I do not know much about that, but I read the papers with some eagerness and I regularly see stories about electric planes and electric flying. Many parts of the United Kingdom have the ability and the interest to develop that.

In February 2020, Sustainable Aviation members made a public commitment to reach net zero UK aviation carbon emissions by 2050. That is a challenging target, but if they have set it, they must think it is achievable. They are the first national aviation body anywhere in the world to make such a pledge. The decarbonisation road map, published alongside the pledge, sets out a plan to achieve that by working with Ministers. It is clearly a partnership, because that it how it works and that is how they will gain their way forward.

The plan wants to do four things: commercialise sustainable aviation fuels, SAF; invest in cleaner aircraft and engine technology, although it is a challenging time to do that because many planes are not being used and the investment needed is not there, although there is a methodology to do it; develop smarter flight operations; and develop high-quality carbon offsets and removals. Under the plan, the UK will be able accommodate 70% growth in passengers through to 2050. If we follow this plan, I believe that we can deliver what the hon. Member for South West Bedfordshire asked us all to endorse and support, and take net emission levels from just over 30 million tonnes of CO₂ a year down to zero.

I and others speak out on behalf of the aviation sector not because of the jobs alone, but because, let us be honest, the best way for me to get to the House of Commons is to fly. I fly from Belfast City to Heathrow every Monday, or thereabouts, and go back on a Thursday. Air travel for me is a way of getting here. For some it is a necessity. It is a necessity for me and, I suspect, a number of those here in the Chamber, as well as others among the 650 Members. When it comes to business and to flying, I support it as I believe it is a way forward. As with anything in life, changes need funding. I understand that there is a request for £500 million of Government funding over the forthcoming comprehensive spending review period to support SAF commercialisation and research and development.

Figures are easy to look at, but when we think about them further then we realise how big they are. The breakdown provides further clarification, which deserves consideration. I am not disrespecting anybody, but it is not just another pledge. Some £429 million is requested in the form of Government-backed loan guarantees for first-of-a-kind SAF facilities, so they will be paid back. The loan guarantees will help establish the UK as a global leader in SAF. Kick-starting SAF production in the UK will fully support the establishment of the first flagship SAF facility in the UK to unlock the wider potential out there that we can all gain from. First-of-a-kind SAF facilities are very hard to finance. The reason why SA is looking for the loan guarantee is simple. Conventional bank debt is not available, or, if it is available, it is offered at a prohibitively high cost, so it simply does not work out. A Government loan guarantee scheme that is tailored to meet the needs of emerging SAF technologies, providing a proportion of the total capital required, would unlock private finance to fund the first commercial scale facilities. Some £50 million in grants is required to help SAF technology providers transition from lower TRLs 3-6 and to support providers at higher TRLs to move to commercial scale. The UK is presently losing out to other countries that provide greater support and grant funding. “Invest today for the return tomorrow” is what my mother would tell me. She made sure that I followed that principle from the early age of 16, as I suspect many others also did.

Fully exploiting the network of UK expertise will enable the UK to showcase cutting edge facilities, creating a network of flagship SAF production facilities and providing a clear path to commercialisation. Some £21 million is required as part of the £500 million that is talked about. It is £429 million in loan guarantees from the Government, £50 million in grants, and £21 million to establish a UK clearing house to enable SAF testing. That remains one of the major barriers to new fuel supply chains. Aviation fuels need rigorous testing to ensure that they meet the safety and quality standards for aviation, and the United Kingdom is home to some of the foremost experts in fuel testing and approval. Others have referred to the expertise that we have in the United Kingdom of Great Britain and Northern Ireland. I always say, and I will say it again: we are better together. That is the way it should be. Even my colleague and friend on the front row, the hon. Member for Kilmarnock and Loudoun (Alan Brown), would have to endorse that to make things happen, we do that better together. The United Kingdom of Great Britain and Northern Ireland could benefit from the proposals that we have. We all need to feel the warmth of prosperity at a time when lots of the news is not good. Indeed, it is sometimes quite distressing.

I will conclude with this. It is clear that this is the time for the Government to determine how serious we are to facilitate the conversion to jet zero. I look forward very much to the Minister’s response to these and other proposals raised today by other hon. Members, by the shadow spokesperson for the Scottish National party, and by Labour Members as well. I have an industry in my constituency that I will support. I want to see it doing it well. I support Shorts/Bombardier, Magellan in Ballywalter and other companies in Crossgar and elsewhere. I support all my aero industries. I encourage the Government to put their money—if I can say this—where their mouth is and make the changes not only possible but probable for the sake of the industry and the future of our planet, because we have a duty to do that. Coming from an Orange background, I am not usually one for plying green strategies, but this is a green strategy that we can all support.

[Mrs Maria Miller (in the Chair)]

We now move on to the Front-Bench speeches. I ask Members to take about 10 or 11 minutes. I call Mr Alan Brown.

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[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

It is a great pleasure to serve under your chairmanship, Mrs Miller, particularly on your first day in Westminster Hall. I thank and congratulate my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on securing this very important debate and giving colleagues across the House, after listening to his speech—which, if I may so, had great expertise and eloquence—the opportunity to discuss the crucial subject of tackling climate change. I also thank him for providing me with an opportunity to highlight how the United Kingdom is showing, and planning to show, bold and ambitious leadership in this area, including through the new Jet Zero Council. He has—

[Mrs Maria Miller (in the Chair)]

Order. May I gently ask the Minister to address the Chair and not the hon. Member?

[Robert Courts]

I beg your pardon, Mrs Miller. It is only my second debate, so that is a schoolboy error at the beginning. I shall ensure that I address the Chair.

My hon. Friend the Member for South West Bedfordshire is quite right to view this matter in a positive and forward-looking way. My hon. Friend the Member for South Cambridgeshire (Anthony Browne) made the same point, and I agree entirely with that sentiment. Last year, the UK maintained its place at the vanguard of reducing carbon emissions and became, as my hon. Friend the Member for St Austell and Newquay (Steve Double) is right to point out, the first major economy in the world to set a 2050 net zero target.

It is critical that aviation plays its part in delivering the UK’s net zero ambitions. My hon. Friend the Member for St Austell and Newquay also pointed out that there is opportunity here. We are in the vanguard of the biggest step forward in British aviation since the post-war era, a step in which this incredible industry continues its global leadership in the fight against climate change. I will dwell at the outset on a point made by my hon. Friend the Member for Gloucester (Richard Graham). He is quite right that succeeding in this challenge will benefit not only the planet, but the economy, because this would potentially give us a share of a market expected to be worth £4 trillion globally by 2050.

We already have a range of programmes supporting research and technology on zero-emission flight, including the Aerospace Technology Institute programme, which has £1.95 billion of public funding committed for 2013 to 2026, and the Future Flight Challenge of £125 million of public funding. These programmes have helped to deliver incredible progress in recent decades in the fuel efficiency of commercial aircraft. The hon. Member for Bristol East (Kerry McCarthy) made an important point about the short-term steps that can be taken to help with sustainable aviation. Fuel efficiency in the short term for commercial aircraft is an important and significant first step in reducing carbon emissions.

The hon. Member for Strangford (Jim Shannon) is quite right to point out the steps that industry has taken. It is good to see him back in his place. I thank him for his kind comments. Although he missed yesterday’s debate, he will be glad to know that his hon. Friend the Member for South Antrim (Paul Girvan) mentioned him in the debate, so he was here in spirit, if not in body. The Government will continue to look at the further support that we can provide to the ATI and, in turn, places such as the Whittle laboratory, which was mentioned, to support our zero-emission flight ambitions.

Several hon. Members mentioned airspace modern- isation, which is a key part of the overall picture, as is the case with airport emissions. Our airspace modernisation programme will allow aircraft to fly more direct routes, using performance-based navigation systems, and reduce the need for holding stacks. Several hon. Members have rightly mentioned sustainable aviation fuels, SAFs, which are a major part of the picture. We can achieve substantial greenhouse gas savings compared with fossil fuels, and these will play an important role in the transition to net zero.

We are looking to build a sustainable aviation fuel industry in the UK, reducing emissions further, securing green growth and supporting the jet zero agenda for post-covid-19 economic recovery. By 2040, this sector could generate between £0.7 billion and £1.7 billion per annum for the UK economy, with potentially half of that coming from the export of intellectual property and provision of engineering services. This industry could create between 5,000 and 11,000 green jobs, disproportionately in areas of regeneration. We are already supporting this sector through recent changes to the renewable transport fuels obligation and the capital funding that is available through the future fuels for flight and freight competition.

We now have the opportunity to further capture the economic and environmental benefits of this technology. We are working across Government and with stakeholders in industry, such as Sustainable Aviation, as mentioned by my hon. Friend the Member for St Austell and Newquay, to build upon the existing package of support, to effectively scale up SAF production in the UK and to drive down its costs.

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[Andrew Selous]

I thank the Minister for his response and I thank hon. Members, from pretty much the whole of the United Kingdom, who have contributed. Three central points stand out. First, how do we get from here to there? We have to bear in mind everyone who works in aviation today who is having a really tough time. We do not want to lose those skills and we have to look after those people. Secondly, the urgency of the climate challenge, which my hon. Friend the Member for South Cambridgeshire (Anthony Browne) talked about, is pressing. Coronavirus cannot stop us recognising that. Thirdly, we have to keep the UK in a world-leading position, so that jobs and the high skill value are here in the UK.

I am encouraged by the Minister’s response. He talked about bold and ambitious leadership, keeping the UK front and centre, and keeping our first mover advantage—

[Mrs Maria Miller (in the Chair)]

Order. There is a Division in the House. I will have to suspend the sitting for 15 minutes.

[Andrew Selous]

I have finished.

Question put and agreed to.

Resolved,

That this House has considered the work of the Jet Zero Council.