Humber Energy Estuary

Melanie Onn Excerpts

Tuesday 9th February 2016 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

This is a timely debate on jobs and growth in the Humber energy estuary, as the estuary has been christened by many people, including many Ministers. The Minister herself has said that it is a key part of the northern powerhouse or, to be more precise, the northern energy powerhouse.

If I may, I will spend a minute or two on the background of the Humber and its importance to the offshore renewables sector. The Humber is ideally positioned geographically to serve the wind turbines that are located in the North sea. In recent years, the port of Grimsby has benefited from multimillion-pound investment connected with the renewables sector. That has included resources from the regional growth fund and has created hundreds of jobs.

Since the late 1990s, Able UK has acquired around 2,000 acres of land on and around the south bank of the Humber. The process was complex and involved multiple landowners. In 2008, the site was identified as a potential location for the emerging offshore wind sector. There followed a protracted and, it has to be said, frustrating process to achieve the required planning consents. North Lincolnshire Council, under the leadership of Baroness Redfern, whom it is good to see in the Public Gallery, has been fully supportive at every stage.

The protracted and exhaustive planning process culminated in the Transport Secretary giving consent in October 2014. Associated British Ports appealed, and there followed a hearing before a Joint Lords and Commons parliamentary Committee—chaired by you, Mr Deputy Speaker, among others—which wisely threw out the appeal.

This Government and the previous coalition Government have done a great deal to attract the renewables sector to the Humber and to establish the Humber as the energy estuary. They have created the largest enterprise zone in the country, supported to the tune of £11 million the establishment of the university technical college in Scunthorpe, and established the Humber local enterprise partnership with the specific remit of developing skills for the renewables sector.

[Melanie Onn (Great Grimsby) (Lab)]

I congratulate the hon. Gentleman on securing the debate. It is wonderful to see so much investment in our area. DONG Energy alone is spending some £1 billion a year on offshore wind in the Humber region. Does he agree that we have to ensure that young people in the local area have the opportunity to learn the skills of the trade and get the jobs that the renewables industry has to offer, and does he support the renewable energy skills fair that I am hosting in Grimsby on 25 February to help local young people get into the industry?

[Martin Vickers]

I congratulate the hon. Lady on organising her skills fair. Her intervention was timely, because I was just about to say that only last week, in a letter following my question to him on 27 January, the Prime Minister reminded me that

“another welcome development is the 19+ skills strategy that North East Lincolnshire Council is developing with support from the Humber LEP…through the Humber LEP Growth Deal we are investing nearly £4 million in a skills capital project”.

That will be based at the CATCH training facility at Stallingborough in my constituency. The Government have contributed £15 million towards infrastructure work at the Able UK site. Most notably, DONG Energy has benefited to the tune of billions of pounds from the contracts for difference that were agreed before the recent changes.

It is fair to say that many people have been sceptical about the benefits of wind power—that comes, in part, from opponents of onshore wind turbines—and my constituents are no different: the majority of them oppose onshore wind turbines. They have a positive view of the offshore sector, however, partly because of the positive media coverage in the area. The local media have repeatedly published very positive reports about the industry and the anticipated benefits. The Grimsby Telegraph produced an energy estuary supplement, in which you are pictured, Mr Deputy Speaker. It described the term “energy estuary” as a “worthy title”. It rightly pointed out that the Humber has, in reality, been the energy estuary for a century or more, with Immingham, by tonnage the largest port in the country, having a massive throughput of traffic connected with the energy industries. One reason for the port’s construction was to enable coal exports. More recently, coal imports have been vital to the economic success of the port, but for a host of reasons coal traffic has fallen dramatically in recent months, leading to recently announced redundancies. It is to be hoped that Associated British Ports can find replacement contracts in the near future. Its recent investment in facilities to handle biomass pellets is an indication of its continued investment in the port.

Another article in the estuary energy supplement was penned by Marcus Walker, the senior officer at North Lincolnshire Council who is responsible for handling the Able project. He said:

“The Humber Estuary is fast becoming the energy capital of Europe. The Government’s £100 billion offshore wind programme is the largest engineering project in the history of the UK and plans for Able Marine Energy Park…play a key part in helping create the energy clusters that we need to be able to compete with major manufacturers in mainland Europe.”

[Melanie Onn]

On that point about the energy capital, Grimsby has recently been named the renewable energy capital of England. Does the hon. Gentleman agree that the Humber is the obvious location for a national college for wind energy, and will he join me in calling on the Government to grant the Humber local enterprise partnership’s bid for the college?

[Martin Vickers]

It is perfectly true that, unfortunately, there was a misunderstanding and the LEP submission was too late. I certainly urge the Minister, if it is within her power, to grant an extension to the Humber LEP so that the college can be established in the obvious place for it.

--- Later in debate ---

[Andrea Leadsom]

My right hon. Friend and I have spoken about that on a regular basis, and we will continue to work together to ensure that we maximise the procurement of UK content wherever we can. The Humber region has huge potential to contribute to growth in the UK supply chain. Just last week we saw DONG Energy secure financial approval to build what will be by far and away the biggest offshore wind farm in the world, with around 1.2 GW—enough to power 800,000 homes. By its own estimate that will create 2,000 jobs during construction, and 300 long-term permanent jobs in operations and maintenance.

The region has had success in realising many of these jobs already. Grimsby is fast becoming the centre of excellence for operations and maintenance activities for offshore wind farms in the North sea, with DONG, Centrica and E.ON having located their bases there. I enjoyed visiting the E.ON operations and maintenance facility with the hon. Member for Great Grimsby and my hon. Friend the Member for Cleethorpes when I was in the area to open the Humber Gateway wind farm last September. During that visit, I also went to see the site where Siemens is constructing its blade manufacturing facility and service centre at Green Port Hull, which will provide over 1,200 much-needed apprenticeships and skilled jobs in the local area when it opens later this year. I was particularly struck by the export capability of this new factory.

[Melanie Onn]

On that point about skills, and as I mentioned to the hon. Member for Cleethorpes (Martin Vickers) earlier, does the Minister agree there has never been a more opportune time to make sure the national college for wind energy is situated in the Humber estuary? Does she agree that we should all be working together to try to encourage the Government to support the local enterprise partnership in bringing the college to the Humber area?

[Andrea Leadsom]

As I think was pointed out to the hon. Lady, the application was slightly late but the Minister for Small Business, Industry and Enterprise is here. I will make sure that the hon. Lady’s lobbying is passed on to her team.