Tidal Lagoons and UK Energy Strategy

Neil Carmichael Excerpts

Tuesday 6th December 2016 Westminster Hall

[Stephen Crabb]

It would be fabulous to have a sense of the timeframe in which the Minister will be making his decision, but it might be unfair to ask him to provide one today, given that he probably has not yet seen the contents of the review. I do not even know the length of the report, and it might take a bit of time to digest. The key point raised by the hon. Member for Cardiff West (Kevin Brennan) is essential: we need a timely decision in the shortest possible timeframe.

The vision of harnessing tidal energy is exactly why Tidal Lagoon Power was started five years ago with the aim of providing home-grown, secure power from a fleet of tidal lagoons around the British coast that could provide low-cost, zero-carbon power for the next five generations, thereby building a new British industry of turbines, generators and turbine housing, with all the manufacturing and engineering jobs, skills and investment that comes with it. That is a compelling and exciting vision of energy and industrial policy coming together in the national interest.

[Neil Carmichael (Stroud) (Con)]

Does my right hon. Friend, and hopefully the Minister, agree that the key point about this and other projects is that they represent long-term investment? The strike price that this project will achieve underlines that this is a cost-effective way of producing energy.

[Stephen Crabb]

I agree with my hon. Friend, and I will address that point later. It is with a long-term view and an appropriate framework of support for the right projects that the prospect of a new UK tidal energy industry is within reach, and with it a source capable of providing 10% or more of the UK’s total electricity requirements.

--- Later in debate ---

[Neil Carmichael]

I thank my right hon. Friend for giving way a second time. The key point here is that one project will help to start the next project, and therefore another and another. That is the central reason why this project as a whole is important: it will create more opportunities still.

[Stephen Crabb]

Again, my hon. Friend demonstrates his knowledge of the potential industry that we are discussing. His point is well made.

It is envisaged that the machining and pre-assembly of the turbines will take place at a new purpose-built facility in the Swansea bay city region. Heavy fabrication of steel components will take place at a new purpose-built facility, also in the region. Final full assembly of the turbines will take place on site in the turbine housing itself. The turbines’ control systems and generators, which connect to the turbines and generate renewable electricity, will be manufactured in Rugby, also from a majority of British-made parts. Meanwhile, a Stafford facility will provide high-voltage switch gear and control and protection systems, all of which demonstrates the UK-wide potential for the supply chain to serve a new tidal lagoon industry.

Quite simply, the development of a fleet of tidal lagoons, starting with Swansea, would provide an enormous boost to UK civil and electrical engineering, our manufacturing sector and our domestic steel industry. According to Graham Honeyman, chief executive of Sheffield Forgemasters:

“Being part of the Tidal Lagoon project would be an important win for this business. The prospect of working on a new power generation concept is an exciting one and is inspiring to our team. The possibilities for this concept, which could play a huge part in addressing the global power deficit, are vast. For such a project to be delivered through British designs and implementation would also be a great boost to the UK economy.”