The energy White Paper is a priority and will be published this autumn. This means that it will play a vital role in building back better and driving greener, clean economic recovery, delivering both jobs and skills.
My Lords, I thank my noble friend for that Answer. Does he agree that when it comes to the future reliability of energy supplies, the public badly need some reassurance? Our main new nuclear project is well over budget and over time. The rest of our nuclear programme is full of uncertainties. The national grid warns of future power cuts unless it can invest fully in new systems, and household energy bills are still sky high. Can the Minister assure us that the long-overdue White Paper will restore some coherence to our medium and long-term needs for low-carbon, affordable and reliable electric power from all sources?
I agree with my noble friend; I know that he speaks with great authority on this subject as a former Energy Minister. The White Paper will consider the overall energy system, including how demand for low-carbon electricity will increase in buildings and transport, and the role of technologies such as hydrogen and nuclear in supporting that transition.
One requirement in decarbonising the economy will be the replacement of current aviation fuels with hydrogen-based synthetic fuels, which will be produced by an energy-intensive process. Aero engines will also need to be adapted to consume such fuels. Small modular nuclear reactors, which Rolls-Royce is developing, would be a means of supplying the necessary energy. The company is also at the forefront of the aero engine industry. Do the Government recognise the unique opportunity that exists in sponsoring Rolls-Royce to pursue developments on both these fronts?
We are always willing to work with innovative British companies. I agree with the noble Viscount’s points about hydrogen and advanced nuclear technologies, which we are providing considerable support for.
As the Minister knows, the current target for offshore wind generation is 30 gigawatts by 2030. During the election campaign, Boris Johnson said that if the Tories won, that target would go up to 40 gigawatts. Which number will be included in the energy White Paper? Whichever one is used, do the Government recognise that not just Ofgem but the Government must make sure that this electricity can be distributed around the country?
The noble Lord makes an important point about the distribution and alterations of the grid that will be required, but I am afraid that I must ask him to curb his impatience and wait for the White Paper with regard to numbers.
My Lords, the Humber energy estuary is the UK’s most carbon-intensive industrial region and hosts some of the largest offshore wind farms to capture and store power. What are the Government’s next steps for those carbon sequestration sites under the North Sea, which ultimately would have the potential to lead in securing a net-zero industrial cluster for the Humber?
The noble Baroness makes a very good point. As I am sure she is aware, we have created a carbon capture and storage infrastructure fund of at least £800 million to establish at least two UK sites—one by the mid-2020s and the other by 2030—and £500 million to help energy-intensive industries to move to low-carbon techniques and decarbonise carbon-intensive regions such as Humberside.
My Lords, I declare my interests as in the register. Given that we are unlikely to achieve net zero without nuclear power, which is critical to the security of thousands of jobs across the regions, I am concerned that the White Paper will contain only a broad outline of the strategy for new nuclear. Will it set out in detail clear guidance on financing, for example a commitment to a RAB model, to give the sector the clarity it needs to progress?
The White Paper will look at the whole system of energy within the UK as part of our commitment to net-zero carbon emissions by 2050. I reaffirm the key role that nuclear will play as part of that future energy mix. I can tell the noble Lord that we will respond to the RAB consultation in due course.
With this long-overdue White Paper, the Government have said that they will
“publish decarbonisation plans for key sectors such as agriculture and industry as part of its green agenda in the run up to COP26.”
Can the Minister confirm that a greater number of these plans will be published on the same day as the energy White Paper to demonstrate the Government’s joined-up approach, so needed to tackle the climate emergency?
The noble Lord is right to point out that intensive work is going on in all those areas. I cannot confirm that those documents will be published at exactly the same time.
With the continuing pull-out from nuclear new builds, do the Government consider it strategically important to invest in the pre-commercial development of the marine energy sector, which is also well aligned with areas where development is needed?