Offshore Wind Infrastructure Competition

Peter Aldous Excerpts

Tuesday 12th October 2010 Westminster Hall

[Dr Whitehead]

My hon. Friend anticipates some of the comments that I am going to make shortly. It is right to say that not only do we need the Government to be the greenest ever in terms of their ambitions, but that to will the ends yet deny the means of arriving at those outcomes would be difficult to countenance.

The offshore wind infrastructure competition was first announced on 24 March this year. It was described in the following words:

“The competition will consider bids from site developers who have a viable plan for developing their site into a centre for offshore wind manufacturing and assembly. We intend to make funding available for the development of these sites...We expect that sites will need to demonstrate that they have the capability to provide: sufficient land capable of being developed into a manufacturing site for offshore wind turbines; access to facilities for the transport of large and heavy products; and heavy duty surfacing capable of bearing heavy loads. Bids will need to be supported by intent from a manufacturer(s) to locate on that site if the site is successful in the competition.”

Remarkably, on the back of that announcement, tectonic plates did begin to move. A day later, GE Energy announced that it intended to invest £90 million on turbine manufacture in the UK. Less than a week later, Siemens announced that it intended to invest more than £80 million in UK-based offshore wind turbine production. When we add to that Clipper turbines siting a 70-feet blade manufacturing plant on the Tyne, Burntisland Fabrications announcing two new factories building underwater jacket substructures in Fife, and Welcon producing 100-metre towers in Campbeltown, the surge in the direction of UK-based manufacturing and support seems to be under way if—I do not think that this is overstating matters—that priming process remains in place.

[Peter Aldous (Waveney) (Con)]

I am grateful to the hon. Gentleman for securing the debate. I share his enthusiasm for wind energy—offshore renewable energy—and ensuring that we make the most of the opportunity that it has presented to us for our industry and for securing manufacturing in the UK. To my mind, we need to be adopting a three-pronged approach—

[Mrs Anne Main (in the Chair)]

Order. May I gently remind the hon. Gentleman that this is a very short debate and he is supposed to make a brief intervention?

[Peter Aldous]

Thank you, Mrs Main. I was referring to the green investment bank, developing the skills base and Government—does the hon. Gentleman agree that Government acting as a catalyst to attract that investment is vital?

[Dr Whitehead]

I agree that Government acting as a catalyst—I mentioned pump-priming—is vital, not by providing underwriting and a subsidy for ever, but by priming the process whereby, precisely as the hon. Gentleman mentioned, manufacturing brings about the added value that I am certain will be part of the process in a relatively short time.

It is important that the pump-priming process remains in place, giving the manufacturers confidence that there is a future for them in the UK and that the plans for getting the supply chain in the UK right for wind are serious. However, the announcement of the competition, archived on the Department for Business, Innovation and Skills website, has, subsequent to its initial appearance, had this message affixed to it:

“Current policy under review. Site will be updated as soon as we have a clearer view of the new Government’s policy”.

That is it, in a nutshell. Will the competition now proceed? My view is that for all the reasons that I have outlined, it is imperative that it does. Cancellation or even a delay of the competition would seriously hamper the development of the infrastructure necessary to make what all sides are committed to, start to work in practice.