- [Judith Cummins in the Chair]
- [Relevant documents: Second Report of the Welsh Affairs Committee, Floating Offshore Wind in Wales, HC 1182, and the Government response, HC 1405; Second Report of the Welsh Affairs Committee of Session 2019–21, Freeports and Wales, HC 205, and the Government response, HC 667.]
- 2:30 pm
- 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.
- 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?
- 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.
- On the subject of ports, I should not let the moment pass without mentioning Peterhead and the nearby St Fergus gas terminal. As my right hon. Friend will know, it is the site of the Acorn carbon capture and storage project, which, when completed, will have import capability that perhaps exporters of carbon dioxide from his constituency will take advantage of.
- I am grateful for my hon. Friend’s intervention. Banff and Buchan is a constituency with which I am very familiar, as he knows, and there are some exciting things happening. For a long time the north-east of Scotland was associated with fishing and oil, but there is a lot more to talk about now, so I look forward to hearing further contributions from him this afternoon.To encourage the investment required for all the ports that we have an interest in and are talking about this afternoon, the targets that the Government are setting are really important because they set the level of ambition and send a signal to investors in the marketplace about what the Government want.There are two documents that are particularly important in describing the opportunities flowing from the new energy environment that we are in. One is the energy security strategy published in April last year; the other, which was published in March this year, is “Powering Up Britain”, which speaks to the role of new renewable technologies in our energy mix and outlines the scale of the ambition. Because of my local port and our proximity to the Celtic sea, I have a particular interest in the Government’s ambitions for floating offshore wind. In those two Government documents, I believe there lies a major new industrial opportunity for our nation.The targets that have been set include 5 GW of floating offshore wind, 10 GW of low-carbon hydrogen production capacity, up to 70 GW of new solar, and an ambition for between 20 million and 30 million tonnes per annum of carbon storage. That is an exciting and ambitious set of targets that the Government are setting out. Meeting them will require a lot of work and a lot of investment, and ports will be right at the centre of it.Different ports will undoubtedly offer different capabilities according to size, location, local skills mix and local supply chains. It is too easy to say that there will be something for everyone, but if the floating offshore wind sector in the Celtic sea plays anything like the role that the Government are setting out for it in “Powering Up Britain”, it will generate new activity in multiple port locations across south Wales and south-west England.
- Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)I feel this is an appropriate juncture to intervene. My right hon. Friend will be aware of the importance of Felixstowe port in Suffolk, which has almost 50% of the UK’s container trade. Through strategic investment, there is a great opportunity for the Government not only to support the economic growth of ports, but to support them in delivering the decarbonising agenda. In the case of Felixstowe, investment in the Ely junction will make a significant difference by potentially improving freight rail capacity to the port. Will my right hon. Friend join me in urging the Minister to recommit today to the Government securing timely funding for upgrading that junction and others in the east of England? That will allow improved freight transport to Felixstowe, will help to decarbonise the transport of goods to the port and will improve its economic capacity.
- I am grateful for that intervention. I am not familiar with the specifics of what my hon. Friend is talking about, but as I am generally in favour of upgrading junctions, I will echo his call to the Minister to support the investment required. His point about decarbonisation is really important; I might say a few words myself about decarbonisation in the context of the local energy industry in Milford Haven.In the port of Milford Haven, we have the UK’s single largest cluster of energy-related businesses, with high-capacity oil and gas pipelines, electricity connections and a wide range of conventional oil and gas companies, as I referred to earlier. The energy sector in Pembrokeshire supports the employment of 5,000 skilled workers across Wales and the employment of many hundreds more throughout the wider supply chain.Last week, alongside representatives of many companies at the port, I had the pleasure of celebrating the delivery of the 1,000th cargo of liquefied natural gas at the South Hook LNG terminal. This afternoon we are talking about the green energy revolution, but the truth—this is a point that the Minister understands very well—is that we will rely on oil and gas for decades to come, and the terminals in my constituency that have done a lot of the heavy lifting in the last couple of years in enhancing UK energy security will be as vital as ever. Those conventional energy companies are themselves taking huge strides and making big investments to decarbonise, reduce their own carbon footprint and fit in with the framework of policy and ambition that the Government have set out.I commend those companies—South Hook LNG, Dragon LNG, the Valero oil refinery, the Puma oil import terminal—which are all part of a cluster around the Milford Haven waterway that is sharing best practice and working together. They are part of the wider south Wales industrial cluster, which has been charged by the Government with the mission of leading decarbonisation efforts. I look forward to hearing the remarks of my friend the hon. Member for Aberavon (Stephen Kinnock). The south Wales corridor—from Milford Haven in the west with its big hydrocarbon plants, through to Port Talbot with the enormous Tata steelworks, and then to Newport and the border of England at Gwent—accounts for a major chunk of Wales’s overall carbon emissions, so the south Wales industrial cluster’s efforts to decarbonise are vital. The Government support them, but it would be good for Ministers to engage even more with the cluster and particularly, from my point of view, with the energy cluster in Pembrokeshire.
- Several hon. Members rose—
- Order. I remind Members that I am planning to start Front-Bench speeches at around 3.28 pm.
- 2:53 pm
- It is a pleasure to serve under your chairship, Mrs Cummins. I thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing this vital debate. It has been a real pleasure working with him cross-party in the interests of our two communities, and communities right across the south Wales corridor and the whole of Wales and the United Kingdom. What we are discussing today genuinely has UK-wide significance. We worked together to develop and deliver the successful Celtic freeport bid, and I look forward to further collaborating on maximising the benefits it will bring.Britain’s ports are both the gateways and the drivers of so much economic activity in the UK and, in turn, are crucial to the prosperity of British people and their families. From the food shipped into Britain’s supermarket shelves to the exporting of British goods sold overseas, our ports play a crucial role both in the everyday lives of families across the UK and in the growth and success of hundreds of thousands of British businesses. As well as adding close to £7 billion to the UK economy, ports employ more than 100,000 people directly, and more than that again in their supply chains, meaning that they are pivotal to supporting local economies and providing communities with good job opportunities. British ports transport around 60 million international and domestic tourists in and out of the country every year.Today I want to focus on the once-in-a-generation opportunity represented by the new industry of floating offshore wind and the crucial role that the ports will play. The Celtic sea and Wales’s geography offer us a significant competitive advantage that we cannot afford to squander. We must seize this opportunity to place ourselves at the forefront of the green industrial revolution, just as Wales was the cradle of the first industrial revolution two centuries ago. Floating offshore wind has the potential to deliver 16,000 new jobs and could land £1.7 billion of investment in port infrastructure and manufacturing in south Wales. FLOW offers the opportunity to unlock a truly game-changing £54 billion of investment into the UK economy, with the Crown Estate aiming for approximately 25 GW by 2045. Indeed, the first 1 GW of projects alone is anticipated to create 5,000 jobs.
- 2:59 pm
- Sitting suspended for a Division in the House.
- 3:13 pm
- On resuming—
- The debate may now continue until 4.15 pm.