Oral Answers to Questions

Seamus Logan Excerpts

Tuesday 12th November 2024 Commons Chamber

[Kerry McCarthy]

The final investment decision on Sizewell C, as I understand it, is expected soon. We will hear more about support for that in the next spending review. Fusion energy has huge potential, not just in the long term but from the innovation we are already seeing in that sphere, which I very much welcome.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

6. What plans he has to support the development of carbon capture, utilisation and storage projects at Acorn.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

7. What recent steps his Department has taken to support carbon capture and storage.

[The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)]

On 4 October, the Government announced £21.7 billion over the next 25 years to launch the UK’s carbon capture, utilisation and storage industry. We will provide further details on the next steps for CCUS, including track 2 projects such as Acorn, in the coming months.

[Seamus Logan]

I thank the Minister for her encouraging answer. Acorn, including the St Fergus site in Aberdeenshire, not only has a significant role to play in achieving net zero in Scotland, but has the capacity to accept carbon from mainland Europe. This project could help the UK and Europe to achieve their net zero goals, and is significant not only for the port of Peterhead in my constituency, as the Minister knows, but for the local power station, which shares the same integrated ambitions. Acorn presents very significant opportunities, representing hundreds of millions of pounds in new investment, new jobs and economic growth for the north-east, for Scotland and for the UK. Can the Minister accelerate the decision making on the Acorn project, and will she commit to funding in 2025?

[Sarah Jones]

We are committed to track 2, and I recognise the huge advantages of Acorn that the hon. Gentleman has highlighted. Our record £21.7 billion investment demonstrates our long-term commitment and gives industry the certainty it needs. The ups and downs of CCUS under the previous Government did not provide the certainty that people required, and certainty is what we are looking to deliver. We understand that people want clarity, and we will be making further announcements in the coming months.

Renewable Energy Projects: Community Benefits

Seamus Logan Excerpts

Tuesday 15th October 2024 Westminster Hall

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

I am pleased to serve under your chairmanship, Dr Huq. I thank the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) for calling this important debate.

Aberdeenshire North and Moray East, which I represent, and the constituency of my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter) are the two constituencies most affected by these developments; I do not think anyone would contradict me on that point, which the Minister well understands. How are they affected? Well, the fisher folk are having to move among the pylons, the farmers are having to deal with the pylons and the underground cabling, and these are areas of outstanding natural beauty.

Those are important points to take on board, but I want to speak primarily about community benefit. The principles that guide us are early engagement, flexibility of approach, transparency and the recognition of community needs, but they are not statutory, which is part of the problem. They need to be put on a statutory footing.

In his maiden speech, the hon. Member for Inverness, Skye and West Ross-shire proposed

“that 5% of revenue from all newly consented renewable energy generated both onshore and offshore should be paid to community benefit funds.”—[Official Report, 5 September 2024; Vol. 753, c. 510.]

I find it very difficult to disagree with him on that point.

I also want to give a little bit of perspective. On 2022 figures, UK investment in new wind farms was €500 million; in Scotland it was €2.6 billion. That gives a sense of proportion. In the Highland area at the moment, 301 turbines have been approved under planning rules but not yet built, which far outstrips any other area of Scotland, including the constituency that I represent. In the midst of all this fuel poverty, Scotland’s people—particularly in my area, which is one of the coldest parts of the UK—are paying the highest standing charges in the UK. That has to change.

There are great benefits associated with community benefits given by these companies. I have an excellent example in Fraserburgh in my constituency, where the Moray East project made a substantial donation. I look forward to similar developments in the near future.

[Several hon. Members rose—]

--- Later in debate ---

[Mark Garnier (Wyre Forest) (Con)]

It is a great pleasure, as ever, to serve under your chairmanship, Dr Huq. I congratulate the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) on bringing forward this important debate. He raised this subject in his maiden speech, so he is clearly passionate about it. As someone who has been here for 14 years, it is a great pleasure to hear so many newly elected MPs bringing fresh perspectives to the House. Parliament is a better place for new MPs coming in and sharing their experiences; two minutes is not enough for some of these speeches.

In his maiden speech, the hon. Member raised valid concerns about the industrialisation of the countryside, which is an issue that all of us, certainly on the Conservative Benches, have consistently guarded against. Our belief is that the need for renewable energy must be balanced with the preservation of rural landscapes, ensuring that development is sustainable and respectful of local communities. Aside from his desire to see money flow back into communities, that is the only way we will get the public to support any plans for net zero and a decarbonised energy grid, as we heard from the Liberal Democrat spokesperson, the hon. Member for South Cotswolds (Dr Savage).

Unfortunately, the new Government immediately began to torment rural communities in their crusade for carbon neutrality by 2030 by removing key protections from the national planning policy framework just days after the election. Those provisions required developers to demonstrate that onshore wind projects had community support and that local planning impacts were properly addressed. In the new Secretary of State’s first week, he disregarded the previous Secretary of State’s legal planning guidance, which stated that the best and most versatile agricultural land must be avoided for new solar farm applications and that the cumulative impact of many solar farm applications must be considered together. Those decisions by the new Labour Government undermine the very communities that bear the burden of hosting new energy infrastructure while ensuring minimal benefit.

Even more concerningly, we understand that the Government intend to consult on bringing large onshore wind proposals into the nationally significant infrastructure project regime, which would further centralise decision making and diminish local input. It is vital that the Government listen to the views and concerns of local communities about onshore wind. Residents should have a say in projects that directly affect their environment and not be sidelined by top-down diktats from Westminster. We must ensure that local voices are heard and that community consent remains central to the planning process for renewable energy projects.

I also note the previous Government’s approach to community benefits and our commitment to ensuring that communities hosting vital energy projects were directly rewarded. We announced plans that people living near transmission infrastructure could receive up to £1,000 per year in electricity bill discounts—I am not sure it was per year, actually—providing meaningful financial relief to local households. In addition to those savings, we announced that funds would be available for local projects, empowering communities to invest in the initiatives that matter most to them, whether that is improving local parks, enhancing energy efficiency or supporting education programmes for young people. We had intended to publish guidance this year on making that a reality, so this debate is timely in allowing the Minister to give an update on all those plans.

When it comes to the impact of new grid infrastructure, pylons across much of our countryside will concern our residents most, and Labour’s accelerated push for pylons across rural landscapes threatens to blight our countryside. The rush to meet unrealistic targets will impose unnecessary visual and environmental costs on rural Britain, with little regard for the long-term impact on our natural beauty. The National Energy System Operator, formerly known as the National Grid, recently published a report that says that while grid enlargement by 2030 means pylons, grid enlargement by 2034 allows enough time to underground those connections and, at the same time, provide £600 million of savings in grid delivery.

The shadow Secretary of State, my right hon. Friend the Member for East Surrey (Claire Coutinho), highlighted during the election campaign that our party remains committed to protecting our landscapes. We propose learning from Germany where underground power lines have become the default presumption in designated areas such as national parks. That approach not only preserves the character of those unique places, but respects the wishes of local communities. Crucially, it could save bill payers money in the long term.

Over the last decade, technological advances have made it increasingly feasible to bury power lines, especially in sensitive areas. Unlike the new Government, we would have undertaken a rapid review to assess the advantages of alternative network technologies compared with overhead pylons. By exploring options such as underground cables and other innovative technologies, we can achieve energy grid decarbonisation without the impact on our countryside that Labour is apparently prepared to accept.

It is vital that we approach the energy transition with a clear vision that balances that transition with the need to protect our countryside and safeguard community interests. Labour’s plans seem short-sighted and fail to strike that balance.

Although we have real concerns regarding the Government’s plans for the countryside, I am extremely supportive of technologies that could have real community benefits—those that are innovative and easy to deliver, and that produce cheaper clean energy. I recently met experts from the University of Oxford and Oxford Photovoltaics, or Oxford PV, to discuss breakthroughs in solar power generation. They are working incredibly hard to produce lightweight solar panels so that the roofs of factories and warehouses can be used for solar panels without having to reinforce the building underneath.

[Seamus Logan]

Is the hon. Gentleman aware that the National Farmers Union of Scotland accepts the arguments and the case for pylons as opposed to underground cabling?

[Mark Garnier]

That is great. If people accept pylons, that is absolutely fine, but there are an awful lot of people who do not and we can look at where the alternatives could be cheaper.

Oral Answers to Questions

Seamus Logan Excerpts

Tuesday 8th October 2024 Commons Chamber

[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.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

Ofgem’s review of standing charges options paper closed for submissions on 20 September. Can the Minister offer any hope for bill payers in Scotland that they will stop being penalised with the highest standing charges on these islands? When will we see lower charges?

[Miatta Fahnbulleh]

We as a Government are committed to getting down standing charges. Ofgem has consulted and will report back in due course.

Carbon Capture, Usage and Storage

Seamus Logan Excerpts

Monday 7th October 2024 Commons Chamber

[Ed Miliband]

Let us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

I welcome the announcement that has been made, but the Acorn project in St Fergus, between Fraserburgh and Peterhead in my constituency, has been waiting for years, following a promise of jam tomorrow from the last lot. Opposition colleagues have asked for a definitive statement regarding progress on the project. I know that it is a track 2 project, but I am deeply impressed by the extent to which the Secretary of State is prepared to move things forward rapidly, so can he please give us some sort of timescale for the Acorn project today?

[Ed Miliband]

I am grateful to the hon. Gentleman for the tone of his question. I do understand that, just as track 1 was led a merry dance by the last Government, so too was track 2. The current Government have been in power for three months. We are moving at speed, and we have got track 1 over the line. These are obviously decisions that the Chancellor will have to make in the spending review, for reasons the hon. Gentleman will understand. I just say to him that we are absolutely committed to track 2, including Acorn.

Making Britain a Clean Energy Superpower

Seamus Logan Excerpts

Friday 26th July 2024 Commons Chamber

[Michael Shanks]

We made it very clear during the election that the future of the North sea is incredibly important, but that future is a transition away from the oil and gas industries that we see at present. The Conservatives also need to recognise that the North sea is a declining basin. We have lost thousands of jobs there over the past decade, and that will continue in the future unless we accelerate our transition in the North sea to the clean energy jobs of the future. It is not good enough to bury our heads in the sand and pretend that this problem does not exist. We need a plan to give people secure, long-term, sustainable jobs for the future, rather than thinking that we can just carry on with business as usual.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

The Minister has referred continually to the role of GB Energy, but how will it deliver lower gas prices? Only yesterday one of his colleagues, the Secretary of State for Energy Security and Net Zero, admitted that the price of gas was determined on the international market.

[Michael Shanks]

I am not sure that the hon. Gentleman understands the purpose of GB Energy, but it is not to bring down gas prices; it is to bring down bills. The whole point of GB Energy is to move us away from our over-reliance on gas. If we are not reliant on gas prices, we will remove that risk to bills from the shocks that we receive from the international markets, but we can do that only if we invest in the clean energy of the future.

--- Later in debate ---

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

It is my pleasure to follow the hon. Member for Bathgate and Linlithgow (Kirsteen Sullivan). I congratulate her on her eloquent and passionate speech, and particularly on her call for gender balance. I am sorry to tell her, though, that her use of the native tongue appears to have brought the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) back to the Chamber. Whether that is to congratulate her or correct her, I am not quite sure.

Moving swiftly on, the area that I am privileged to represent has been at the heart of the UK’s energy production for 50 years and more, and it is now poised to be at the forefront of a renewable energy revolution. Frankly, we could and should be much further along the road to energy transition, but we are where we are. The Government have said that they want us to become a clean energy superpower, but I regret that they have scaled back on their original ambitions to invest £28 billion in order to realise that goal. Nevertheless, I hope that they will chart a pragmatic and constructive way forward.

The journey to net zero is well under way in Scotland, with estimates suggesting that the renewables sector already supports around 42,000 jobs. The UK, though, is behind schedule when it comes to investing in the infrastructure, including the grid infrastructure, that those projects will require. The unrealistic pricing of contracts for difference has held back the development of offshore wind. The new Government need to address that issue with the same urgency with which they are moving on other matters.

The north-east of Scotland has been the European capital of oil and gas for many decades. Now we have the opportunity to be the net zero capital. We have enormous potential to capitalise on offshore wind generation and the development of green hydrogen. These are time-limited opportunities, especially as we have ambitions to develop lucrative supply chains, as well as technologies and manufacturing that have significant export potential. In the longer term, that would be the prize for our economic future.

I want to impress on Ministers today the case for bringing the HQ of GB Energy to the north-east of Scotland. Just look at a map: the bulk of offshore renewables production will be within a 100-mile radius of Aberdeen. The ports that will be essential to servicing the sector, most notably Peterhead and Fraserburgh in my constituency, are on the east coast, close to the Moray Firth. There are also important potential roles for smaller ports. We already have a workforce with relevant skills and unrivalled experience. We also have the most to lose; according to research published last year by Robert Gordon University, around one in five jobs across north-east Scotland is in the oil and gas sector. I do not want to see a repeat of what the Thatcher Government did in mining and steelmaking communities across Scotland and elsewhere. Perhaps as much as 80% of skills in oil and gas are crossover skills. We must support that crossover.

Successive UK Governments have used the North sea as a cash cow. Some £10.6 billion flowed into the Treasury coffers in 2022-23, but there has not been a great deal to show for it in Aberdeen city or Aberdeenshire, in terms of infrastructure or investment in that crucial transition. I hope that can change going forward.

As we debate the need to address climate change, improve energy security and deliver a fairer deal for consumers, it is important to acknowledge the reality: we will continue to need oil and gas for some time to come. Many of us are still using gas to heat our home. Fuel poverty is very real. High standing charges and a cold climate is a brutal combination that pushes thousands upon thousands of households into energy poverty. Most of us still use cars that run on petrol or diesel. In areas like mine, where distances are greater, public transport is more limited. Colder winter temperatures mean electric vehicles work less well and the use of traditional vehicles is accentuated. Our reliance on fossil fuels is falling, but it is not about to disappear. Oil and gas will continue to be part of our energy mix for some time, which is why it is important that ongoing production is in line with climate compatibility criteria, and is managed in a way that does not lead to a premature winding down of production in the North sea. However, the current fiscal regime for North sea production has created a very real and present risk. It has the potential to cost thousands of jobs and saddle the Treasury with cumulative decommisioning costs.

I ask Ministers to look at the impact that the energy profits levy has had on jobs and productivity, consider the role of the energy security investment mechanism, and acknowledge the importance of investment allowances. Why? Because the fiscal regime in the North sea is holding back investment in energy transition. We need to recognise that North sea operators are, in many cases, those who are making the biggest investment in renewables. If the Government really want to unlock the potential of the renewable energy sector, they need to work with those who can invest on the scale required and over the necessary timeframes, and who already have an experienced, expert workforce at their disposal. I would welcome the Minister’s comments, in his summing up, on the Government’s plans for a fairer fiscal environment across the energy sector.

I will make one final point, on carbon capture and storage. We need to press on with projects such as the Acorn project at St Fergus precisely because they are cutting edge and have tremendous potential to create new technology, knowledge and expertise. We have a globally competitive subsea supply chain in the north-east of Scotland. We excel in developing solutions to technical challenges. We see challenges as opportunities, and we seek to be leaders in innovative new technologies. There is the potential to deliver fair energy prices for consumers, improve energy security and help us to meet our international climate obligations. The north-east of Scotland and communities in my constituency in particular will be at the centre of the changes ahead. I urge Ministers to make good on their promises, and deliver a managed and just transition for those workers and communities on the frontline.

[Madam Deputy Speaker (Judith Cummins)]

I call Douglas McAllister to make his maiden speech.