Green Energy: Ports

Debate between Stephen Crabb and Tim Loughton

Wednesday 18th October 2023 Westminster Hall

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

I beg to move,

That this House has considered ports and green energy.

It is a pleasure to serve under your chairmanship, Mrs Cummins—for the first time, I believe. I look forward to the next 90 minutes. I almost thought I saw the Minister cursing under his breath as he sat down for yet another debate; I keep dragging him back here to talk about issues that are close to my heart and to the interests of my constituency in Pembrokeshire. I am grateful to have secured time for this debate.

This is an important topic, for a couple of reasons. First, quite simply, without a thriving port sector attracting the necessary new infrastructure investment, I do not believe that we will be able to meet the ambitious targets that we have set to protect our energy security and renew our energy system as we work towards net zero. Secondly, a new generation of investment in our ports, based around a long-term vision for renewable energy, has the potential to make a significant contribution to addressing some of the economic inequalities and deprivation that we see in too many of our port communities.

I believe that ports can be an engine for local economic renewal and the key to a new energy future for the whole United Kingdom. That is the essential message that I hope to convey in my short remarks this afternoon. The key question I want to pose is this: what are the steps, decisions and interventions that His Majesty’s Government can take to support and shape this new future for our ports, while recognising that it is the private sector investors and developers who will ultimately need to make that vision a reality?

Nowhere is that more clearly in focus than in my constituency of Preseli Pembrokeshire. The port of Milford Haven is the UK’s most important energy port, hosting major oil refining and petroleum import and export terminals, two liquefied natural gas import and regasification terminals, and one of the UK’s largest and most efficient gas-fired power stations. The port looks forward to a future in which offshore wind and hydrogen will play a central role as our energy system changes. I will make some specific remarks later about the situation at Milford Haven in the context of its relationship with Port Talbot; together, those two south Wales ports form the Celtic Freeport enterprise. I am sure that the points I make will come as no surprise to the Minister, because he has been generous in giving me lots of time over the past year or two to talk about the vision that is emerging there. He has been extremely helpful in his work to take that forward.

As we are an island nation, it seems almost trite and blindingly obvious to say that ports are an essential part of our economy as gateways for vital imports and valuable exports. However, I do not think that that point is appreciated enough, partly because while some ports have flourished in recent times, others have not. In too many of our port communities, there is a sense that they are no longer quite as central to our economic life as they once were when the structure of the UK economy looked very different. Many ports have seen a steep decline in trade and industrial activity without seeing new industries and sectors emerging to fully plug the gap.

I believe that the green energy revolution offers a turning point for many of our ports. There is a broad consensus shared across the Government, the Opposition and large swathes of industry about the increasing importance of renewable energy in our energy mix and about the need for less reliance on imported hydrocarbons. With the impact of climate change brought increasingly into focus following the supply and price impacts of the war in Ukraine, we can see the net zero and energy security agendas coming together in a very potent way. The need to deliver home-grown, affordable and sustainable energy has never been greater. Our ports are right at the heart of meeting that challenge.

It is worth saying that Britain does not exist in isolation when it comes to this agenda. Across Europe, North America and indeed the whole world, many other countries are looking at this—just look at the efforts being made by major ports across Europe to get ready by upgrading their infrastructure to enable a big increase in renewable energy. We can see that at Bilbao, Brest, Rotterdam and other locations across Europe. We are in an internationally competitive environment. One point that I want to leave with the Minister today is that, for all the ambition we have and the vision that we have set out and are pursuing, we need to recognise that others are doing so as well. Given the competition for investment and capital, often from large global companies, we need to be getting our skates on and making good progress.

Ports have a major role to play in delivering on the renewable energy vision, and not just as transit points or entry and exit points for materials; they also have the potential to be hubs for manufacturing, energy generation, operations, maintenance and servicing. Just as in another era our ports acted as cradles of the industrial revolution, I think they can be cradles of a new green industrial revolution, based on the vision that I have been outlining.

[Tim Loughton (East Worthing and Shoreham) (Con)]

I congratulate my right hon. Friend on securing this debate, to which I have come purely so that I can hijack it by singing the virtues of Shoreham harbour, the closest cross-channel harbour to London. He mentioned green hubs, and I absolutely agree with his comments about flexibility and the renaissance in our ports.

Shoreham harbour has put solar panels on its sheds. It has wind turbines. It helps to service the Rampion wind farm just offshore, which will expand to power more than 1.2 million homes across Sussex. It is becoming a hydrogen hub, working with Ricardo engineering, which retrofits engines to be run on hydrogen. Shoreham wants to produce its own hydrogen as well as importing it, and it will be an important centre for net zero through the Sussex bay kelp project, where carbon capture by seaweed is even greater than by trees. Is Shoreham not a great example of flexibility, adaptability and the huge potential of the green revolution, which can also apply to the whole United Kingdom?

[Stephen Crabb]

I am grateful for the very concise way in which my hon. Friend has sung the virtues of his local port. He draws attention to an extremely important point. Very rarely are we talking about individual technologies in isolation; often they come together as a mix. There are so many synergies from different companies working together, as we can see at so many ports around the United Kingdom. It is really encouraging to see so many colleagues in the Chamber from so many different parts of the United Kingdom, hopefully looking to share in the vision that we are talking about.