10-point Plan: Six Months On

Stephen Flynn Excerpts

Tuesday 18th May 2021 Commons Chamber

[Kwasi Kwarteng]

I am pleased that my right hon. Friend mentions gigafactories and the opportunities that they represent. There are conversations as we speak between people who are making batteries and the car makers; clearly, the dynamic between the auto manufacturers and the people who will be making the batteries is an important one. I hope to make a positive announcement about that soon. In relation to Ellesmere Port, there are very positive discussions with Stellantis. I am very much engaged with this matter, and we are particularly hopeful that we can make some movement in the summer on this too.

[Stephen Flynn (Aberdeen South) (SNP)]

I welcome the statement in so far as it goes, but there is need for further clarity. Hydrogen has been mentioned on a couple of occasions. When exactly does the Secretary of State expect the hydrogen strategy to come forward, and how does he expect the business models to operate in practice?

We have concerns not just about hydrogen and the delays in that regard, but in relation to carbon capture and underground storage. The House will be cognisant of the fact that in 2017 the Government pulled the plug on £1 billion-worth of investment in Peterhead. We know that there are plans to have two clusters in place by the mid-2020s. One of those clusters has to be in the north-east of Scotland, linking the north-east of Scotland with Grangemouth, because of course Scotland has contributed more than £350 billion in oil and gas revenues to the UK Treasury. There can be no just or fair transition if the communities that I represent and others in Grangemouth are left behind.

My final point is in relation to an issue that appears to have escaped the notice of the Secretary of State in his statement, and that is transmission charges. He will be aware that our renewables project in Scotland must pay to access the grid, whereas the renewables project in the south-east of England gets paid to access the very same grid. I see that the Energy Minister is in her place. That is important because she wrote to me on 12 April and said:

“On the specific question of grid charging arrangements, it is important to note that this is a matter for Ofgem as the independent regulator.”

However, as the Minister knows only too well, Ofgem’s strategy and policy is determined by the UK Government. Indeed, the Government’s own energy White Paper states, on page 86:

“We will set out our vision for energy as a guide to Ofgem, by consulting in 2021 on a Strategy and Policy Statement for the regulator.”

When will that consultation begin and when will this Government stop holding back Scotland’s renewables potential?

[Kwasi Kwarteng]

The hon. Gentleman raised three issues. The hydrogen strategy should be coming out in the summer. It is a twin-track strategy, as I described it as Energy Minister. We are committed to the production of both green, electrolyser-produced hydrogen and blue hydrogen, which comes from carbon capture.

That leads me to the hon. Gentleman’s second point. He will know that there are a number of attractive sites for carbon capture here in the UK. We have set out our road map for two clusters by 2025 and two more by 2030, and we are in the process of deciding how to proceed on that. He can rest assured that Acorn is a very attractive project; it is something that I have looked at, and I am sure we will have some more information on that.

On offshore transmission charges, the hon. Gentleman knows that this has been an issue for a long time. I committed to looking at it as Energy Minister, and we will have a consultation on that. He must also appreciate that the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), is absolutely right: this is ultimately a matter for Ofgem, which, as he knows, is an independent regulator.