Renewable Energy
Generation
(Sefton Central) (Lab)
1. What recent discussions he has had with the Secretary of State
for Business, Energy and Industrial Strategy on supporting
renewable energy generation in Scotland.
(Denton and Reddish)
(Lab)
2. What recent discussions he has had with the Secretary of State
for Business, Energy and Industrial Strategy on supporting
renewable energy generation in Scotland.
The Parliamentary Under-Secretary of State for Scotland ()
I regularly discuss issues of importance to Scotland with
Ministers, including support for Scotland’s renewable energy
sector. Our recently published net zero strategy will leverage up
to £90 billion of private investment by 2030 across the entire
UK.
Edinburgh based Nova Innovation is a success story in the tidal
energy sector. There are plans for tidal energy schemes across
the UK, including in the Liverpool city region, with the Mersey
tidal barrage. Thanks in large part to the Labour party and the
industry, £20 million is now available in the contracts for
difference scheme, after years when there was nothing. Will the
Minister commit to long-term support for the tidal energy
industry, which has so much potential in Scotland, for my
constituents in Merseyside and across the UK?
The hon. Gentleman is absolutely right to point to contracts for
difference, the fourth round of which was announced at the
beginning of this week and is bigger than the other three rounds
put together. Scotland has punched above her weight, securing 21%
of the capacity in the previous rounds, and stands well
placed—not just in tidal, but right across the spectrum of
renewable energy. We are funding this in the short and long
term.
The British Government have not backed the Acorn carbon capture
and storage cluster, which is vital to Scotland’s path to net
zero, but are maintaining support for the Cambo oilfield, which
would dig up more fossil fuels for years to come. Does the
Minister agree that the priority should always be supporting
renewable energy generation, not fossil fuels?
The hon. Gentleman paints a misleading picture of the support
that we are giving. I have just outlined to the hon. Member for
Sefton Central () the long-term support that
we are providing to the renewables sector. It is wrong to say
that we are not backing Acorn. There was a competitive round for
two carbon capture and storage schemes. Acorn was a good project;
it is a reserved project. We continue to work with it to ensure
that it has a fighting chance of securing the next tranche of the
carbon capture and storage schemes.
(Banff and Buchan) (Con)
I welcome the remarks made by my hon. Friend with regard to Acorn
in my constituency, which is still very much on the table,
despite protestations from Opposition Members. Will my hon.
Friend confirm that the Government also provide the oil and gas
industry with vital support for the energy transition through the
North sea transition deal?
I can absolutely give my hon. Friend that assurance. I pay
tribute to the tireless work that he does to champion the energy
sector, both as a Minister and as a local Member. He is
absolutely right; yes, we need to transition to renewable, but we
have to be aware of the fact that we will need oil and gas during
that transition period—not just for energy, but for the all the
other purposes for which fossil fuels are required, such as the
production of medicine.
Mr Speaker
I welcome shadow Minister to her new post.
(Blaydon) (Lab)
Thank you, Mr Speaker.
The post-COP26 message is that Governments have little time to
act on climate change. As the Secretary of State is aware, the
Acorn carbon capture and storage project has not been given the
go-ahead by the UK Government, but it could create 15,000 highly
skilled jobs in Scotland and demonstrate that a just transition
is feasible. The shadow Secretary of State for Scotland, my hon.
Friend the Member for Edinburgh South (), wrote to the First Minister to encourage her to find
a joint solution, but the reply contained more reasons not to
work together and grievances than finding a solution for the
project. Rather than the UK and Scottish Governments trading
insults, will the Secretary of State back the Acorn project by
finding a joint funding solution with the Scottish
Government?
I welcome the hon. Lady to her new position. I look forward to
our debates in the weeks and months ahead. I can advise her that
she should probably not be too surprised when letters from the
Scottish Government are full of grievances—that is par for the
course. On Acorn, we do support the scheme. There was a
competitive bidding round, where it placed third. It is a
reserved project, and we are working with it to ensure that it
stands a good chance in the next tranche of the carbon capture
and storage scheme.
(Redcar) (Con)
Alongside renewable energy, we need to accept our current energy
mix with the energy transition. Does the Minister therefore share
my anger at the Scottish Government’s complete dismissal of
the Cambo oilfield, at the
expense of oil and gas workers in Scotland and across the
country?
My hon. Friend makes an important point. As I said a minute ago,
we cannot just switch off oil and gas immediately. We want a
transition, and this Government are investing significantly, with
£160 million in floating wind farms, £20 million for tidal stream
and the £285 million next round of contracts for difference, but
it is important that we do not lose our domestic oil and gas
supply not only for energy, but for the whole range of purposes,
including medicine and other vital products.
Oil and Gas
Sector
(Harrogate and Knaresborough)
(Con)
5. What discussions he has had with Cabinet colleagues on the
future of the oil and gas sector in Scotland.
The Secretary of State for Scotland ( )
My ministerial colleagues and I regularly discuss oil and gas
with fellow Government Ministers and stakeholders. The oil and
gas industry is hugely important to north-east Scotland, and most
recently the Under-Secretary of State for Scotland, my noble
Friend attended the North Sea
Transition Forum, alongside the Minister for Energy, Clean Growth
and Climate Change, regulators, and representatives from the oil
and gas industry.
I thank my right hon. Friend for that answer. In the transition
period to our net-zero future, we will still need oil and gas for
domestic use. What role does the Secretary of State see for UK
domestic production to meet that need, because the Scottish
economy is well poised to deliver it?
Mr Jack
My hon. Friend is right: we will continue to need oil and gas as
we transition to net zero. Developing our own supplies reduces
reliance on imports that are produced to less rigorous
environmental standards. It will also protect jobs in our oil and
gas sector during our transition. Comments by the Scottish
Government on this have been, by turn, disgraceful and
depressing. As Sir Ian Wood, one of the most respected
authorities in the industry said, those Scottish Government
Ministers are creating an “adverse investment environment”, to
which I would add only this: careless talk costs livelihoods.
(Gordon) (SNP)
Is the Secretary of State aware of the evidence given to the
Scottish Parliament’s Net Zero, Energy and Transport Committee by
Professor Stuart Haszeldine, who said that there was no advantage
to the Acorn project having been given reserve bidder status, as
that merely means “a lot of meetings”, and requires companies
to
“run on the spot with very little or no funding”?
Is the professor wrong in his assessment, and if so, would the
right hon. Gentleman be good enough to tell us why?
Mr Jack
Acorn is the reserve for this round, and we would like it to be
expedited in the next wave. We have met many of the stakeholders
involved in the project, and they have agreed that if we can
accelerate it to 2023, they can improve the bid and the
Government can include it in the next wave. That is very much our
focus.
(West Aberdeenshire and
Kincardine) (Con)
Does my right hon. Friend agree that the complete abandonment of
north-east oil and gas workers by the First Minister of Scotland
is an absolute disgrace? She did not call for an end just
to Cambo it was to all
further exploration in the North sea. Will the Secretary of State
confirm that this Government stand full square behind the
industry and workers in the north-east, unlike the Scottish
Government?
Mr Jack
I would add that the remark of the First Minister’s Minister, the
Green party MSP, who said that only “hard-right extremists” want
to explore oil, was also disgraceful. Even when we get to 2050,
we will need oil for 20% of our power, and we will need gas for
15%, and for producing blue hydrogen. We will need that oil not
just for power, but for important things such as the
petrochemicals industry and for making instruments for the NHS.
It is ridiculous to think that we can just turn off the taps and
not destroy our economy.
(Aberdeen South) (SNP)
This is not just about what we extract from the North sea; it is
also about what we put back in. That is why the Acorn project is
fundamental. The Secretary of State mentioned Sir Ian Wood and
his views on the oil and gas sector, but he will also be
cognisant of Sir Ian Wood’s views about his Government’s decision
to turn their back on Acorn. Will the Secretary of State finally
admit to regretting the decision of his colleagues?
Mr Jack
I have discussed this matter with Sir Ian Wood, and I do not
think the hon. Gentleman reflects his views fairly. Sir Ian Wood
understands and agrees with us that the bid can be improved. To
be clear, the difference between Acorn and Humberside, Teesside
and Merseyside, was that Humberside, Teesside and Merseyside have
a huge hinterland of industrial carbon. Acorn was bringing the
carbon from all parts of the UK and/or Europe to make the bid
work. We are working on how to get more industrial carbon into
the project, to make it more viable and to expedite it for 2023.
