Geothermal Energy

Rachael Maskell Excerpts

Thursday 6th March 2025 Commons Chamber

[Dr Mullan]

The hon. Member is right, and I join him in paying tribute to the BGS, an organisation I have had the pleasure of working with over recent years. It has done fantastic work in mapping and identifying the potential, and with funding it will have the appetite to go even further, reducing uncertainty by helping developers and investors to understand the resources underneath our feet.

The UK is already a world leader in tackling climate change and clean energy, having been the first major economy to halve our emissions, and renewables now account for more than 50% of our electricity, up from just 7% in 2010. With deep sedimentary basins in east Yorkshire and Cheshire, granites in Cornwall and Scotland, hot sedimentary aquifers in Surrey, Dorset, and Sussex�in my constituency�the UK�s unique geography puts us in an ideal position to exploit the benefits of geothermal energy.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful for the work that the hon. Member has done in this area. York has rich sources of deep geothermal. The York Central site could heat 30,000 homes in my constituency, yet the local authority and other bodies do not have the confidence to bring those projects on board. Does he agree that the Government could provide tools and support to enable such projects to come to fruition, as well as just improve basic understanding?

[Dr Mullan]

The hon. Member is completely right�forgive me, she is also a member of the APPG although I did not recognise that at the start of my remarks. One thing we can do through the APPG�we started to do this in the last Parliament, and I am trying to reconstitute it�is to help interested local authorities form a group and support them. This technology is new to them, and they do not necessarily have the expertise and understanding. Again, the hon. Member is right: these are the sorts of things that a comprehensive Government-led strategy could help to address close the gaps.

As I said, the resource in Europe, and the rocks that are being exploited, are essentially exactly the same veins of rock that cross the channel. There is no geological difference and no less potential than with the rocks that are being exploited in Europe.

It is true that the heat and rocks necessary for deep geothermal electricity are rarer here in the UK, with Cornwall leading the field, which is where the projects I mentioned are getting off the ground, but historically the focus on electricity has caused us to overlook the potential for heat.

The Association for Renewable Energy and Clean Technology�REA�worked with Arup to assess the UK�s potential. They estimated that the UK could support 360 geothermal plants, producing 15,000 GW of heat each year, which could supply heating to over 2 million homes through heat networks. Additionally, some of those plants could generate around 400 GW of electricity annually, enough to power a further 150,000 homes.

The Minister will be looking closely at securing the best possible value for money from every penny invested in renewable technologies, but I want to make four points about the way in which this exercise should be undertaken, because too narrow a framework would underestimate the benefits of deep geothermal to our economy overall.

First, as I alluded to earlier, solar and wind are cheaper now, but they did not used to be and we need to think about the potential trend costs. Secondly, as mentioned, deep geothermal is baseload, unlike solar and wind, and that has to be given due consideration. Thirdly, there is the question of where the investment will end up. I had the opportunity to work with the Durham Energy Institute as part of a national review into deep geothermal for the previous Government. We identified that deep geothermal can play a key role in levelling up, with six of the 10 least economically resilient local authorities also having the highest geothermal potential. Some 44% of the list of high potential locations for deep geothermal fall within the top 100 UK local authorities in need of levelling up, three times the amount that we would expect as a result of chance. Investing in the sector would create thousands of well-paid jobs and drive green growth in areas that need it most. Fourthly, deep geothermal provides a natural transition for oil and gas workers, as many skills, such as drilling, are directly transferable. Oil and gas companies�sometimes UK companies�are delivering these projects across Europe. Surely this is the obvious industry to invest in to protect those jobs and businesses as we transition.

How might we go further in the short term? I have worked with the industry to develop a ready-made plan. I ask the Minister to look closely at the proposals that the APPG have produced to create a carve-out in the public sector decarbonisation scheme to unlock this opportunity. The PSD scheme has already played a crucial role in helping public sector buildings transition to low carbon heating solutions. However, a specific programme could be carved out to support an initial cohort of deep geothermal projects, ensuring that schools, hospitals and other public buildings can benefit from this reliable, renewable heat source. By doing so, the Government would not only accelerate the decarbonisation of public infrastructure, but provide a strong foundation for the wider geothermal industry to scale up and attract investment.

I have spoken in the Chamber before about how hospitals are fantastic anchor candidates for deep geothermal plants. Industry leaders have identified that, of the 210 NHS hospitals in England and Wales that have been prioritised for decarbonisation due to their high heat demand, 109 overlie potential geothermal aquifers. The advantage of working across the NHS is that we can bundle up opportunities to create a bigger investment opportunity. I know that hospitals across the country are already exploring this, including Eastbourne district general hospital, which services my constituents in Bexhill and Battle.

One of the challenges for deep geothermal is scale of cost and uncertainty. Solar and wind are cheaper and more certain investments. A single geothermal plant is expensive and cannot be guaranteed to tap into the reserves the analysis suggests will be found. By pooling together the investment opportunity of a number of sites, economies of scale are created, the risks of not all the sites delivering can be factored in and the numbers can still be made to add up.

The private sector is willing and able to invest in such an opportunity. I have personally met representatives from a number of capital funds and deep geothermal developers and they would leap at such a project. We estimate that a dedicated fund of just �15 million for 10 plants at 10 public sector sites could unlock �250 million of private sector investment and kick-start a wider industry in the UK. Will the Minister meet me and other members of the APPG to discuss that in the near future?

Alongside that, there is a powerful argument for a broader geothermal development incentive, modelled on the heat incentive, which will provide businesses with confidence that geothermal is part of the UK�s energy future. It could be modelled on contracts for difference, ensuring a competitive process, but by offering scale we would again be reducing risk for developments.

I know there are concerns about open-ended support for any industry, but the aforementioned REA-Arup report modelled support for only an initial wave of 30 projects that would help establish a scaled industry in the UK, which could then stand on its own two feet.

Establishing a deep geothermal strategy is crucial to setting clear targets and providing a long-term road map for the sector. Will the Minister advise whether the Government will produce such a strategy? Government support is key to enabling a route to market for the sector. I know the Government are shortly due to publish a review of the comparative costs of deep geothermal. When does the Minister expect the review to be published? That would provide a welcome update. I know that industry stakeholders that work with the APPG and others would be happy to act as critical friends of that review ahead of publication. Would the Minister be happy to facilitate that? It is so important to ensure that this review has looked at all the evidence and can make full use of the experience of industry.

The APPG also considers and is trying to raise awareness of the benefits of shallow geothermal, as the hon. Member for Camborne and Redruth (Perran Moon) mentioned. While it is very closely related to deep geothermal, as we might expect, that industry faces different challenges, but it could offer solutions even more widely. I know that significant private sector investment is available. Again, we are talking about a technology that could reduce the strain on electricity-driven grid connections. For both sectors, GB Energy might well be expected to play a vital role. Can the Minister confirm my expectation that its remit will extend to heat as much as to electricity, and can she confirm whether the mandate from Government will ask it to consider deep geothermal specifically?

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[Miatta Fahnbulleh]

We know that there is a big opportunity for district heating, particularly in some of our urban centres. In the work that we are trying to do through the warm homes plan, we are thinking about where those opportunities are and making sure that we work with regional and local government to do some of the planning and the identification of those opportunities. That means that we can take a strategic approach, area by area and place by place.

[Rachael Maskell]

I am really grateful for all that the Minister is doing in this area. However, some of this work is quite time-sensitive; for instance, we have a major development in York, the first phase of which goes into planning in September. We very much want to work with Government to see what we can deliver in York Central. Would the Minister be prepared to work with us to see whether we can get this model working on some of those micro sites?

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 8th October 2024 Commons Chamber

[Miatta Fahnbulleh]

We are having to clean up the mess that the Opposition left us. Yes, we have means-tested the winter fuel payment, but we have also been clear that we will do everything we can do to support vulnerable households. That is why we have extended the take-up of pension credit and the household support fund, and we are working flat out with energy suppliers to provide additional support to all vulnerable households this winter.

[Rachael Maskell (York Central) (Lab/Co-op)]

I thank the Minister for her work. Warm home prescriptions can target that support towards elderly people and those with underlying health conditions, saving our NHS as well as keeping people warm over the winter. The pilot has shown real benefit. Will she meet me to discuss that and other options to keep old people warm this winter?

[Miatta Fahnbulleh]

We want to work with anyone who will help us reach vulnerable households. I am very happy to meet my hon. Friend to look at the full range of options available.

Clean Energy Superpower Mission

Rachael Maskell Excerpts

Thursday 18th July 2024 Commons Chamber

[Edward Miliband]

I welcome the hon. Lady to her place. Great British Energy will of course have a strong interest in nuclear power, working with Great British Nuclear. It is very important for the future. This Government were very clear in our manifesto about the role that nuclear power—both large-scale nuclear and SMRs—can play. I know that the last Government purchased the site for Wylfa, and it is something that we will certainly be looking at.

[Rachael Maskell (York Central) (Lab/Co-op)]

I welcome my right hon. Friend to his place and congratulate him on his ambition. BioYorkshire is a project—a green new deal—to create 4,000 green-collar jobs and upskill 25,000 workers. It will also create hundreds of spin-offs and new start-up companies focused on chemicals, agriculture and a new generation of fuels. Will he ensure that his Department has early engagement with this green new deal for York and North Yorkshire? Will he ensure that that is part of his energy superpower for the future?

[Edward Miliband]

I am grateful to my hon. Friend for drawing this project to my attention. In a way, the questions from both sides of the House demonstrate the huge potential we have in this area, not just to tackle the climate crisis and energy insecurity but to create the good jobs of the future. I undertake that the Department will want to look closely at her project.

Oral Answers to Questions

Rachael Maskell Excerpts

Tuesday 19th September 2023 Commons Chamber

[Amanda Solloway]

The Government set the aspiration in the clean growth strategy of upgrading as many homes as possible to energy performance certificate band C by 2035, where practical, cost-effective and affordable. We remain committed to that aspiration. Although tax policy sits with the Treasury, we are considering how to improve energy efficiency for owner-occupied homes and plan to consult by the end of 2023.

[Rachael Maskell (York Central) (Lab/Co-op)]

T7. Energy companies have accumulated hundreds of pounds, if not over £1,000, in consumer credit. When those companies go into administration, the company taking over does not honour that credit and people often with very little means have lost hundreds or thousands of pounds. How will the Minister ensure that they get compensation and get credited by the new company with the amount of money they have lost?

[Amanda Solloway]

I can assure the hon. Lady that we are in constant conversations with Ofgem on such matters. Although this is a matter for Ofgem, I have a regular meeting to make sure that we are on top of this.

Reaching Net Zero: Local Government Role

Rachael Maskell Excerpts

Monday 5th June 2023 Commons Chamber

[Wera Hobhouse]

I congratulate my hon. Friend’s local authority on getting that amount of money, which is obviously welcome but is not enough. I think the Minister will hear from across the House that the competitive process is a real problem, because it wastes time and money—money that could be spent directly on the projects themselves.

[Rachael Maskell (York Central) (Lab/Co-op)]

The reality is that we also have to talk about scale. York wants 73,000 heat pumps and 22,000 new connections to sustainable district heat systems, and we have 44,100 homes that need retrofitting and 24,000 that need microgeneration through solar energy—all by 2040. If we do not scale up the funding, we will never reach those targets.

[Wera Hobhouse]

We all need to grasp the enormity and scale of what needs to be done. The ambition of central Government is just not big enough, whereas I find that the ambition in local authorities is very high and the will to deliver on that high ambition is much bigger in local authorities than we currently see in central Government.

In the updated net zero strategy, the Government agreed to simplify the funding process. Local authorities have spent £130 million since 2019 simply on applying for competitive funding pots—£130 million that could have gone into the projects.

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[Wera Hobhouse]

Indeed. Again, the hon. Lady pre-empts me; I will come to that point in a minute. Local authorities need much more control over what is happening in their local transport provision. The situation is wholly inadequate. If we really want to provide an alternative to motorised travel, we need good local transport and bus services, but we do not have them. Local communities are crying out for us to design and implement such services, but local authorities must be key partners as only they have the structure and relationships to deliver the programmes we have discussed.

Let me return to housing. We Liberal Democrats have campaigned relentlessly to get the Government to introduce higher efficiency standards for new builds and not wait until 2025. It is irresponsible to delay further and to hamstring local authorities’ ability to raise standards, and it is ridiculous that we are building homes now that will need to be retrofitted in five or 10 years’ time. That is such a waste of time. Why not regulate now to build the houses for the future? The chair of the national Climate Change Committee has called this a “stunning failure” by the Government to decarbonise homes, and I fully agree.

Planning and listed building laws also contribute to our leaky buildings. We Liberal Democrats run councils with some of the most precious historic buildings and streetscapes in the country, such as in my city of Bath. This is a blessing and a curse. We represent some of the most beautiful areas in the world, but we are often unable to retrofit and reduce the emissions of historic houses and buildings. Currently, national planning policy puts heritage concerns above climate concerns. That is counterproductive. If councils are unable to retrofit these properties and make them more energy efficient, many will become uninhabitable.

[Rachael Maskell]

Another issue that needs to be addressed is that of skills. We simply do not have the skills supply needed to retrofit—whether historic buildings or new builds—at the scale we need. It will therefore be crucial to start injecting that focus on skills, but we need to do that now to deliver in time.

[Wera Hobhouse]

Indeed. We need a Government who understand how this all fits together. We cannot retrofit homes if we do not have the supply chains or the skills, and we need to be talking to further education providers and universities so that we get the skills for the future. This all needs to come together, but there is currently a deplorable lack of plan and vision. Again, local authorities have understood that and are starting to have those conversations. Central Government should really look to local authorities and see them as equal partners.

In designing future planning policy, we need central Government to give more weight to climate concerns so that local authorities can make our beautiful buildings habitable and fit for purpose. Planning legislation must also be bound to our climate change legislation, so that climate change can take greater weight in planning decisions. The Royal Town Planning Institute argues that nothing should be planned without the idea first having been demonstrated to be fit for a net zero future. This would solve some other issues. For example, a major reason that renewable projects can wait up to 15 years to connect to the grid is that the planning approval process is not adequately focused on the urgency to deliver net zero.

Local authorities are also constrained when it comes to managing transport. Surface transport is the largest emitting sector in the UK. The benefits of supporting active travel far outweigh the cost. People walking, wheeling and cycling in 2021 took 14.6 million cars off the road, saving 2.5 million tonnes of greenhouse gas emissions and avoiding more than 29,000 early deaths. Independent modelling suggests that even if 50% of vehicle sales were electric by 2030, car mileage would still have to decrease by more than half if we are to limit global warming to 1.5°. Investment in active and sustainable travel is therefore essential.

Unfortunately, the decision to deregulate buses means that bus operators run routes primarily based on profitability, which has led to thousands of bus routes being closed. Between 2021 and 2022 alone, 1,100 bus services were cut, including 51 in the south-west region. The Government must empower local authorities to franchise bus services and simplify the franchise application system, and they must also reverse the ban on local authorities setting up their own bus companies. Only then can our bus routes be determined by the needs of local communities, rather than the need to make a profit.

Active travel is not prioritised when the Government decide what infrastructure projects to fund. Instead, the Department for Transport’s web-based transport analysis guidance model provides funding for travel schemes that have a perceived economic benefit, which means schemes that lead to higher volumes of faster traffic. Councils have been told that money for an access road to the city centre would not be awarded if traffic levels decreased due to the reduction in economic activity. They have also been told that a pedestrian crossing could not be implemented due to the cost of delays to traffic. Those decisions fly in the face of the need to really tackle the climate emergency. Active travel schemes are usually built where they do not require such appraisals by the Department for Transport, and local authorities need to have the powers and financial control to build them. Local authorities should have the power to access transport funding using alternative justifications to those of WebTAG, and WebTAG itself must be revised to increase the value assigned to active travel projects.

Looking at all the examples, it is no surprise that we are on course to overshoot our target level of greenhouse gas emissions by twofold. We need local and national Government to work together to give us the best chance of hitting net zero. We Liberal Democrats propose that the Government establish a net zero delivery authority. That body would oversee the delivery of net zero, co-ordinate cross-departmental working, and facilitate the devolution of powers and resources to local authorities. It would co-ordinate national and local strategies and provide information to central Government about how projects can be delivered on the ground.

A net zero delivery authority would work with local authorities and communities to engage with them about delivering net zero. That work would primarily be carried out by local actors, with the delivery authority providing leadership and trustworthy information about the national decarbonisation effort. A similar body was proposed in the Government-commissioned independent review of net zero, but unfortunately the Government have not responded positively to say that that is actually a very good idea. I hope that the Government will look at it again—maybe the Minister can give us a different answer from the one we heard a few months ago.

Local authorities also need a sense of direction. To start with, they need a statutory duty to deliver on climate change; unless and until that happens, the issue will remain at the mercy of local politicians. Climate change is massively underfunded within local government because it is not part of local authorities’ core duties. Giving them that statutory duty would be a game changer.

National Government and local authorities do not yet have an integrated or systematic way to discuss, support and facilitate local net zero delivery in the short or longer term. That must change, too.