That this House has considered Government support for the marine renewables industry.
I thank the Backbench Business Committee for the allocation of time for this important and, as we head towards allocation round 7, timely debate. I hope that we will be able to influence some of the Minister’s thinking. It is good to welcome him to his place in the Chamber.
It is also good to welcome you to the Chair for the first time, Ms Jardine. You and I have known each other for many years, and I anticipate—I might yet be shown to be horribly wrong about this—that the next few hours may witness the longest I have ever been able to speak in your presence without interruption. [Laughter.] I should also place on the record that my hon. Friend the Member for Taunton and Wellington (Gideon Amos) is celebrating a significant birthday today. What better way to celebrate the acquisition of a bus pass than an afternoon spent in Westminster Hall?
This debate is particularly timely. As well as coming in the run-up to AR7, we anticipate in the next few weeks the publication of a fairly comprehensive piece of work by one of Scotland’s finest universities, the University of Edinburgh. Its school of engineering is about to publish a report on the future economic potential of tidal stream and wave energy in Scotland. I will not spike the release of the report, but it is an enormously significant piece of work, which will significantly progress the debate as we head towards AR7.
Among the headlines from that report may be an indication of the potential of tidal stream and wave energy in Scotland and across the whole United Kingdom. Marine energy could contribute £37 billion gross value added to Scotland’s economy by 2050, and £28 billion of that, most significantly, is from exports. When the Minister speaks to colleagues in Government about the opportunities to grow our manufacturing base, contribute to the economic growth to which we are all committed and, as a consequence, improve export performance, this is the direction in which he might want to point them. Marine energy has the potential to create 62,400 jobs—to put that in context, the wind industry currently supports in the region of 20,000 jobs—and we have the potential in Scottish waters alone to deploy 9 GW of tidal stream and wave energy by 2050.
The opportunities for tidal stream generation come from the fact that as a brand-new industry—how often do we get to say that?—we can shape the supply chain and then export the expertise and products from that supply chain around the world. Tidal stream is not unique to Scotland or the United Kingdom; when we show that it can be done here, others will want to do it in other parts of the world. Devices that are currently in the water have produced a UK supply chain input in the region of 80%. Not many technologies are in a position to make that boast.
The vibe in the industry, if I can put it like that, is fairly positive and upbeat: there are opportunities coming down the road. However, this “overnight success” has been at least 20 years in the making. It has been a long march, and progress is never linear. We have had false dawns and disappointments, but in the last few years it has been demonstrated beyond any measure of doubt that obvious and visible demonstrations of Government support make a real difference in getting this industry towards the point of commercialisation and the opportunities that that will bring.
At the time of the fourth allocation round, the then Government committed to the first ringfenced pot for tidal stream generation. That had a massive impact, not just as a consequence of the opportunity that it provided, but as a signal that the technology was taken seriously by Government and was being given opportunity and support from Government. It is to that series of signals that we now need to look, because although we have made significant progress, we are not yet at the point of commercialisation. We do need to do a little bit more in order to get there happily.
Does the right hon. Gentleman agree that the Government need to give leadership and clarity to the tidal sector, including by explaining whether the criteria for well developed tidal range proposals published by the last Government are being taken forward by the current Government, so that projects like the Wyre tidal barrage in my constituency will be better informed when going forward with their proposals?
I do agree. I suspect that I do not have as much expertise as the hon. Lady in tidal barrage—or whatever we are calling it these days. Most of the interest I have developed over the years is in tidal stream, but there is never going to be a single technology or a single silver bullet here; there has to be an opportunity for all the different technologies to contribute. The USP of tidal energy, however we capture it, is of course its predictability, so it can contribute to baseload. I will discuss later how the industry is able to engage with Government, because there are parallels to be drawn with what has been done in the past for the oil and gas industry, which might now be done for renewables, particularly marine renewables.
I shall first dwell briefly on the progress we have made thus far. Orbital Marine Power, for example, now deploys the world’s most powerful tidal turbine—in Orkney, obviously. It is estimated that that device, manufactured in Dundee, has on its own created something in the region of 80 full-time equivalent jobs across the United Kingdom. Since its incorporation, Orbital has raised and deployed £84 million of capital. It won two contracts for difference in round 5, totalling £7.2 million, on top of the £7.4 million that it had been awarded in AR4. It is expected that the first power from these contracts will be collected in 2026. These are serious companies doing serious business. This is no longer a sort of aspirational, slightly hippy niche subject; these are serious businesses that require serious attention from Government and regulators.
Nova Innovation, which operates in Shetland, as it happens—I am told other island groups are available—installed the world’s first offshore tidal array in Bluemull sound between Yell and Unst in Shetland. It has six two-bladed horizontal axis tidal stream turbines and is the largest array yet deployed. In AR6 Nova secured three 15-year contracts totalling 6 MW of tidal energy capacity. As a consequence of the last allocation round, the UK is on track to have in excess of 130 MW deployed by 2029. Nova is also involved in floating solar developments, and it is estimated that floating solar has the potential to produce 9.343 TWh in the future. That is the scale of the opportunity that presents itself.
It is a pleasure to serve under your chairship, Ms Jardine. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate.
I want to begin by talking about the exciting link between the Edinburgh North and Leith constituency, and Orkney and Shetland. Nova Innovation, based in Leith, has a very simple mission: to be a global leader in marine energy, delivering clean, predictable energy across the world. In 2016, it installed the world’s first offshore tidal array in Bluemull sound, in the right hon. Gentleman’s constituency, and ever since then the array has went from strength to strength. Three turbines were installed in 2016, a fourth in 2020, and a fifth and sixth two years ago. That installation is not just the world’s first offshore tidal array; it now has the largest number of tidal turbines anywhere in the world. In last year’s contracts for difference allocation round, Nova secured contracts to deliver 6 MW of tidal energy at the Fall of Warness site in Orkney. It is innovating at pace and is demonstrating the potential for tidal and new marine renewables to deliver energy security, and to help with the sprint to clean power.
It is essential that the Government support and guide marine renewables—first, by setting a 1 GW tidal stream target by 2035, which would send a signal to industry about their support and ambition. I am keen to hear from the Minister what consideration the Government have given to putting in place such a target.
Secondly, GB Energy could help to harness the potential for tidal power here and across the globe. Nova in my constituency has demonstrated that the technology can work, and our tides and sea mean that we have 11 GW potential domestically. If GB Energy took equity stakes in tidal stream projects, those projects could be scaled up not only to benefit from that 11 GW earlier, but to build up domestic manufacturing, domestic supply chains and to deliver jobs. I appreciate that there is smaller demand for tidal overall than for other renewable sources, but at present 8% of the tidal supply chain is in the UK.
It is an honour to serve under your chairmanship, Ms Jardine. I thank my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) for securing this debate.
As the Member for South Devon, I am proud to represent a constituency with a long and rich history of maritime activity. From the bustling port of Brixham to the naval port of Dartmouth, the sea is very much part of our identity. It is for that reason that I am here today in firm support of the development of marine renewable energy. However, progress must be pursued in a way that respects and supports our fishing industry, ensuring that these two vital sectors can thrive side by side.
The UK is a global leader in renewable energy, and marine renewables present a unique opportunity to further that leadership. The water surrounding our islands hold enormous potential. Living on wet, windy islands, would it not be great if we could put some of that weather to good use?
According to the Offshore Renewable Energy Catapult, tidal stream energy could provide up to 11.5 GW of capacity —following what my right hon. Friend the Member for Orkney and Shetland said, I think that figure is probably more now—which is equivalent to approximately 15% or more of the UK’s current electricity demand. Wave energy, though less mature technologically, offers additional capacity for long-term energy generation. These technologies, which include tidal stream turbines and oscillating wave surge converters, are capable of harnessing predictable and consistent energy, which is a crucial advantage over more intermittent renewable sources, like solar and wind.
Investing in marine renewables is not just an environmental imperative. It is a huge economic opportunity for the UK. The sector, as we have heard, could create tens of thousands of jobs and attract billions in private investment. Projects such as those we have heard about in Orkney and Shetland demonstrate the potential for large-scale deployment, with capacity to generate a substantial element of our electricity once fully operational.
I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing this important debate, which is of great interest to me as an MP from Cornwall and co-chair of the all-party parliamentary group for the Celtic sea. I will probably replicate some points that have been made but it is telling that we are all calling for similar things, so I will say a little more about some of the industry’s asks.
Cornwall is ideally placed to play a leading role in the development of the marine renewables industries. We have 400 miles of coast, strong tides, south-westerly winds and proximity to the Celtic sea. We are in a prime location for offshore wind and tidal stream energy. The port of Falmouth in my constituency could service floating offshore wind turbines, and Truro and Falmouth is home to world-leading businesses such as Inyanga and Tugdock, which are at the forefront of marine renewables innovation.
However, the tidal and wave industries, like floating offshore wind in the Celtic sea, need support from the Government and particularly ringfencing for AR7, to which I will return. As hon. Members have noted, tidal stream is a highly reliable method of energy generation because it is unaffected by weather, offers a stable energy supply and complements other more intermittent renewable sources, such as wind and solar. It also presents a number of benefits to UK jobs, supply chains and energy security. Tidal stream projects are being deployed with over 80% UK supply chain content, which is a much higher percentage than for some other renewable technologies. However, tidal and wave are smaller, less developed industries than solar or fixed offshore wind. Tidal energy currently forms less than 0.01% of the UK’s electricity generation, but the UK Marine Energy Council says that it has the potential to meet over 10% of demand.
I welcome the Government’s recent clean power action plan, which recognised the potential for tidal stream and floating offshore wind to be important components of long-term decarbonisation in the UK. However, for that to happen—and if marine renewables are to follow a similar cost-reduction pathway to solar and fixed offshore wind—the marine renewables industry does need Government support.
I have quickly written this speech while others were speaking, so if it is a bit general, it will be because of haste. I have just read it twice, and I thank the Lord I should be able to decipher my writing.
I thank the right hon. Member for Orkney and Shetland (Mr Carmichael). I have said it before, but I really do mean it: he brings many issues to Westminster Hall and the Chamber, and always with calmness, which is quite a talent. He also makes sure they are subject matter that all of us from the Gaelic nations—Northern Ireland, in my case—are right away interested in.
I have a big interest in this subject. Since I became an MP, way back in 2010, I have always been aware that Strangford lough, which is in the constituency I represent, has the potential for tidal green energy provision. There was a pilot scheme so many years ago. That was probably the wrong time, simply because the energy generated was too expensive. Things have moved on, and what was not possible way back then is possible now. That is why I wanted to speak on this issue.
The hon. Member for South Devon (Caroline Voaden) mentioned fishing, and I also want to reflect on that. I am a great believer that, when we move forward, as much as possible we have to bring everybody with us, although that is not always possible in this world.
I want to mention a Queen’s University Belfast marine development scheme in Portaferry. Exciting stuff is happening there, and it reinforces the ideas advanced by the right hon. Member for Orkney and Shetland. Strangford is being used as a test site for a groundbreaking marine energy project. That is something that I hoped to bring forward many years ago—for the record, I have not brought it forward, but I have supported bringing it forward. It has been great to see it, and to tell people about it.
Ocean Renewable Power Company Ireland and Queen’s University have announced the successful deployment and commencement of the testing of a new generation of marine hydrokinetic turbines on the Strangford lough tidal test site. This is groundbreaking and visionary, and I am particularly pleased to see it. It is a significant milestone for ORPC, because it is the first time that the company has generated electricity from one of its turbines outside of North America—that is where the innovation and excitement comes from—after 17 previous deployments in America and the USA. We are on the frontline.
Strangford is at the junction between significant bodies of water, and it contains a thriving commercial fishing community, primarily based on the inshore fishery. A significant number of fishermen fish out of the local fleet and there is also an important processing plant sector, tied to the inshore fishery, that produces mussels, cockles, whelks and shrimps. The fishery is one of the most important in the country and local people feel passionately about it. They and their families have been fishing these waters for generations and their views are deeply rooted in tradition.
The hon. Member for South Devon put forward a case: to move forward with all our great technology and establish all the green marine energy that we can. I support that. Some people in Northern Ireland may not share my opinion, but I think it important for us to move forward. However, we also need to protect our fishing sector, and I make a special request on its behalf. What is required is a regulatory framework that is flexible, adaptable and responsive to changing conditions at sea. Unlike land-based conservation, whose ecosystems are more static, marine ecosystems are dynamic and can change year by year. We must be able to adapt our policies to the changes, ensuring that our approach to marine energy also supports our fishing sector and those who—let us be honest—vote for me. Let us make sure that we deliver for them as well.
Meur ras, Ms Jardine. It is a pleasure to speak under your chairship, and I welcome you to your place. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this debate. Given the importance of the debate, it is again disappointing to see that so few Members from His Majesty’s official Opposition are here to contribute. But I am encouraged that so many Members from the Celtic nations of the United Kingdom are represented today.
Support for the marine renewables industry demonstrates not just awareness of our developing energy system up to 2030, but foresight into how we achieve energy security in the long term. Julian Leslie, the chief engineer at the National Energy System Operator—the body responsible for advising the Government on their clean power strategy—has described the 2030 clean power target as reaching the base camp of Mount Everest. He describes the next stage, decarbonising heat and wider industry on the way to 2050, as climbing to the mountain’s peak. What that means is that the next generation of technologies, such as tidal stream and wave energy, will need to develop and proliferate deployment at scale as our economy becomes increasingly reliant on electricity.
According to the Government’s “Clean Power 2030” plan, marine renewables—tidal stream, in particular—will be an incredibly useful source of energy that, as has been mentioned, can be deployed without correlation to other energy sources, therefore acting as a predictable component of our clean energy infrastructure.
I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate. The hon. Member for Camborne and Redruth (Perran Moon) refers to rolling the technologies out at scale. The only eligible English project that has the marine lease, environmental licence and network connection offer is in my constituency, on the Isle of Wight. Does he agree that local communities must benefit directly from projects in their areas—through direct jobs, obviously, but also through other indirect benefits?
Yes, I entirely agree. Social value is an absolutely core element of a lot of these renewable opportunities; I am thinking not only of value going back into the community—including community ownership, potentially—but of the creation of good quality, highly skilled local jobs.
I echo the words of my colleague and neighbour, my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham), in championing Inyanga Marine Energy Group, which is based in Penryn. It is developing the exact cutting-edge technologies that we will require in the form of its HydroWing structure, which produces exceptionally high and reliable yields.
I also highlight the work of Offshore Renewable Energy Catapult’s marine energy team, which focuses on tidal stream and is, I am proud to say, based in my constituency of Camborne and Redruth, and in Hayle. As has been mentioned, according to the Marine Energy Council tidal stream technology can meet over 10% of UK electricity demand, with the UK leading in the planned installation of over 130 MW in its seas by 2029. We must show support for the commercial development of such marine renewable projects through greater funding from Great British Energy, as my hon. Friend the Member for Edinburgh North and Leith (Tracy Gilbert) mentioned, and by ringfencing contracts for difference funding in AR7 later this year.
In the 20th century, the UK’s power system was dominated by coal; in the 1990s, that system evolved into the “dash for gas”. We are now pivoting towards the use of offshore and onshore wind, partnered with flexible and low-carbon dispatchable power. Generations before us in the last century would scarcely have been able to imagine what our energy system looks like now. However, I believe marine renewables represent immense potential, which we must support today to achieve the net zero goal of tomorrow.
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The real catalyst of this serious and determined progress was the setting up in 2003 of the European Marine Energy Centre in Orkney, a body that had its roots in a report of the Science and Technology Committee of this House, which was taken up and driven by Highlands and Islands Enterprise and then the Scottish Executive. I pay tribute to my predecessor in this House, Lord Wallace of Tankerness, who as Deputy First Minister of Scotland saw the opportunity, got the resource and the political drive behind it, and set up EMEC, which is the facility for demonstrating and testing wave and tidal devices.
EMEC’s operations since 2003 have contributed £370 million GVA to the UK economy. EMEC’s success is due in no small measure to Neil Kermode, its director since 2005. I am not going to turn around because he is in the Gallery and I know that he will be staring daggers at me for singling him out, but Neil’s contribution to the success of that institution must not be underestimated, as it shows the difference that one person in the right place at the right time can make.
Another significant driver of progress in Orkney is Heriot-Watt University’s campus there, the International Centre for Island Technology. In recent years, its postgraduate taught courses in renewables have grown a skills base at postgraduate level which has been an important part of driving the progress we have seen. We cannot make progress without skilled people; we can get in all the investment we like, but it will only take us so far if we do not have people who are capable of using and developing it. Despite that, in 2019, the Scottish Funding Council grant scheme that had supported the tuition for these postgraduate taught courses ended. That has precipitated a fall in student numbers.
Although this issue is principally within the Scottish Government’s remit, I want to put it on the Minister’s radar, because if achieving development and deployment goals is part of UK Government policy, there must be a means of finding UK Government money for these courses. Whether it is done by sponsorship of places or some other means, the cost of 20 students a year at £9,200 each would be £920,000 over a five-year period. Think about that in the context of the numbers that I have spoken about—the potential that the sector adds to the UK economy. If we do not make this investment now, we will be penny wise but pound foolish.
I have some key asks of the Government as co-chair of the all-party parliamentary group on marine energy, in consultation with the Marine Energy Council, Scottish Renewables and RenewableUK. The most important thing, as we head towards allocation round 7, is an increase in the ringfenced budget for marine energy. The last three consecutive ringfences for tidal stream through contracts for difference have delivered an unprecedented deployment pipeline, but the last round saw a fall in the contracted amount at a point where we really needed to build momentum for the sector. I am told by those in the industry that there is sufficient eligible capacity to ensure that there would be competition for a ringfence set at that level. Scottish Renewables and the Marine Energy Council believe that the UK Government should set a £30 million ringfence for tidal and a £5 million ringfence for wave energy in this year’s round—a round, incidentally, that they described to me as “crucial”.
We also look to the Government to enable support for marine energy through GB Energy and the national wealth fund. High capital costs and unconventional risk profiles are hindering some of the progress in securing adequate finance for a move towards large-scale commercial construction. GB Energy and the national wealth fund could accelerate deployment of and embed UK content in marine energy projects. They could provide finance under commercial terms for viable projects that have secured a CfD. That is not asking them to make a particularly risky investment, but it would allow them to bring to final investment decision, and thus construction, some of those projects in this parliamentary term.
The third ask is to provide a voice for marine energy with a marine energy taskforce, which brings me back to my answer to the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers). In addition to supporting investment, both the Scottish and UK Governments have an important role to play in bringing key stakeholders together. Again, it is about sending signals. Scottish Renewables and the Marine Energy Council believe that the UK Government should establish that energy taskforce to develop a strategic road map, to tackle barriers to deployment, to secure investment, to increase innovation funding and to deliver value for money.
When I was in Government, we set up a body for the oil and gas industry called PILOT. It was essentially the forum in which all the various majors, and those with any production interests in the UK continental shelf, could sit down and inform Government on the progress of their industry, and on the strengths, weaknesses, opportunities and threats. That was a formal body, so that there was a degree of transparency associated with it. If PILOT could be set up for the oil and gas industry in the past, a similar body for marine renewables would be a particularly positive development. Again, it is about sending signals to the markets to give them the confidence to make the necessary investment.
We are looking for the Scottish Government—this is obviously not a point for the Minister—to prioritise marine energy in their energy strategy; for the Minister to speak to his colleagues in other Departments as we get the industrial strategy; and for both Governments to set bolder targets, which we believe would boost investor confidence. These asks do not come with particularly large price tags attached. The CfD levels would of course be a significant increase, but that is money that is already there and accounted for. Everything else is essentially about sending signals. We saw at the time of the creation of the first ringfence, at AR4, that sending these signals can be an enormously significant catalyst for investment.
There are a couple of issues that I want to put on the Minister’s radar. They do not necessarily fall under his portfolio, but I know that Ministers talk to each other. First, as the deployment of marine renewables and offshore wind continues to develop apace, there has to be some mechanism for holding the ring between renewables and other users of the sea and the seabed. The Minister knows that I have big concerns about the role that has been given to the Crown Estate Commission as owners of the seabed. I would like to think that the commission would be a body that could hold the ring, as it owns and licenses the use of the seabed, but experience tells me that it does not always work out like that. If we give the powers to the Crown Estate Commission that are anticipated in the Crown Estate Bill, which is going through the House, while retaining the obligation on it as a primary duty to maximise return to the estate, then there could be an issue. To be successful, we have to be able to bring island and coastal communities along with us, otherwise this becomes another thing that is done to those communities, rather than something in which they feel they have a role.
Finally, if we are going to deploy more resource at sea—and obviously, I think we should—we have to take the question of cable security seriously. We have to look at what happened just before Christmas, when the Russian so-called ghost fleet cut the cable going into the south of Finland. We know that Russia has had some activity, which we believe to be malign, in the UK continental shelf, so let us get ahead of the game and take that seriously.
The placing of cables on the seabed will only become more significant. I recently met Xlinks, which is bringing a significant amount of solar energy from Morocco to the United Kingdom via a subsea cable, which it is burying as it goes. It is at these points that we realise that with every opportunity there is a threat, and we must take the threats seriously. That is not within the Minister’s purview, but at the end of the day it has to be part of the way that we approach the outcomes.
Thank you for the opportunity to bring these concerns to the House, Ms Jardine. I am thankful that a good number of colleagues have stayed here on a Thursday afternoon. I appreciate their commitment, and I hope it will bear fruit.
Thirdly, we need to speed up the consent process, and I welcome the decisions taken by the Department for Energy Security and Net Zero in that regard. Stakeholders have expressed their dismay to me that, although Canada can secure consent and start construction within two years and France can do similar within three, the process can take up to a decade in the UK. I am concerned that if the timescales cannot improve, we will fritter away our competitive advantage not just with marine renewables but across a large number of established and innovative technologies. I appreciate that consenting is devolved to Scotland; the Minister knows that I have raised the unacceptably long process for consent decisions with the Energy Consents Unit and Marine Scotland, and I would welcome an update on the recent discussions he has had with Scottish Ministers on consenting.
I hope that the Government will listen to today’s debate and fully back marine renewables, and that in the future there will be a stronger link between Edinburgh North and Leith, and Orkney and Shetland, with more tidal energy generated.
The integration of marine renewables into our energy mix will not only diversify supply, but enhance our grid stability through predictable energy output. The economic benefits extend way beyond energy production. The sector could contribute billions to the UK economy annually, with supply chain opportunities for our coastal communities and the manufacturing sector alike.
As we pursue this promising future, we must not lose sight of the vital role that our fishing industry plays. Brixham, one of the UK’s most productive fishing ports, landed a record breaking £43.6 million-worth of seafood last year. That is not just an economic statistic—it represents the hard work of the fishing community and their contribution to our food security. As we navigate the transition to renewable energy, it is essential that the voices of our fishermen are heard and their expertise is valued.
Marine renewable energy projects must be carefully planned to avoid disrupting fishing grounds and marine ecosystems. That requires advanced spatial planning tools, such as geographic information systems, to identify suitable sites for development that minimise conflict with established fishing zones and sensitive habitats. Consultation with the fishing community must be a fundamental part of the development process, not an afterthought. Fishermen know the waters better than anyone and can provide invaluable insights into where installations can co-exist happily with fishing activities. With good collaboration, we can ensure that marine renewables are located in areas that minimise conflict and maximise benefit.
This approach is not just a matter of fairness. It is also a matter of practicality. Energy security and food security are two sides of the same coin. As we strive to achieve net zero and reduce our reliance on fossil fuels, we must also ensure that we are protecting our ability to feed the nation. The sea can provide both energy and food, but only if we manage it wisely and sustainably. It is worth noting that the development of marine renewables can also enhance marine biodiversity if designed thoughtfully, creating artificial reefs and habitats that benefit marine life.
I must, though, express some concern about the lack of clear Governmental targets for marine renewables. Neither the previous Government nor the current Government have set—yet—any specific targets for the installation of wave or tidal energy. Although the Government have committed to achieving at least 95% low carbon generation by 2030, the December 2024 clean power action plan fails to set explicit goals for marine renewables. Instead, it relegates them to a potential long-term role in decarbonisation objectives.
I believe that lack of ambition is a missed opportunity to capitalise on the UK’s vast marine resources and risks leaving us behind in the global race for renewable energy innovation. As an island nation, where the one thing we can rely on is the tide coming in and going out day after day, we should be doing more to capitalise on it. That seems more logical than shipping in solar energy from Morocco—although if we could ship in sunshine from Morocco, I would be up for that. I urge the Government to rectify the oversight by setting binding targets for the deployment of wave and tidal energy. Doing so would provide clarity and confidence for investors and developers, fostering rapid growth in this critical sector. Moreover, it would align marine renewables with the broader decarbonisation agenda, ensuring that they contribute meaningfully to our energy transition. I also call on the Government to provide long-term funding for research and development, such as the UK’s £20 million ringfenced budget for tidal stream innovation, and streamline the regulatory process to accelerate deployment. The Government must create a supportive framework for private investment, through mechanisms such as contracts for difference, to ensure market confidence, with a ringfenced budget for tidal and wave. The Government must also commit to robust engagement with the fishing industry to ensure that livelihoods are not sacrificed in the name of progress. There is room for everyone in this endeavour, but only if we take the time to plan and act responsibly.
Marine renewable energy offers a bright and sustainable future for our coastal communities and the nation as a whole, so let us seize this brilliant opportunity but do so with care, collaboration and respect for all those who depend on the sea.
From AR4 onwards, tidal energy has benefited from ringfencing, which led to Inyanga, based in my constituency, being awarded CfDs in AR5 and AR6 for their HydroWing technology, which will be deployed in Morlais, Wales. Previous allocation rounds show that the sector can respond successfully to a ringfence. Inyanga had the only successful pot 2 offshore project to win a CfD in AR6.
The ask of Great British Energy is to commit, say, 3% of its budget to investing in marine energy because tidal stream projects are being deployed with over 80% UK supply chain content spend, which is significantly higher than for other renewable technologies. GB Energy should seek to embed and accelerate deployment of that UK content in projects installed here and around the world. It could take equity stakes, under commercial terms, in projects that have secured a CfD.
Other hon. Members have asked about a Government-industry marine energy taskforce. The purpose of that taskforce would be to bring together key players from Government, industry, regulatory and other relevant organisations to enable marine energy development—the embedding of that UK content in projects deployed here and around the world—to support the Government’s ambition to make the UK a clean energy superpower. I have also been pushing for that kind of masterplan and leadership for floating offshore wind. Others have asked about the 2035 targets, including a 1 gigawatt tidal stream and 300 megawatts of wave energy deployment. Setting those targets will boost investor confidence and support investment in coastal communities and beyond.
The UK could also introduce innovation funding, particularly for marine energy. Between 2017 and 2022, such projects received only £17 million in innovation funding. Wave energy projects received £57 million of funding, £39 million of which came from the Scottish Government. That targeted innovation funding has been proven to reduce the overall cost associated with commercialising these emerging renewable technologies. Two tidal scheme projects in Scotland were successful in the last Horizon Europe call, which demonstrates both the importance of a close UK-EU relationship on marine energy and the attractiveness of the UK as a destination for that innovation funding.
I cannot stand here and talk about renewable energy in the sea without mentioning floating offshore wind, so I will reiterate some of the asks that that industry would have as well to kick-start floating offshore wind, particularly in the Celtic sea. Like tidal and wave energy, floating offshore wind needs a ringfenced element in the AR6. The one-size-fits-all route is disadvantaging the Celtic sea due to the comparative lack of port infrastructure, skills and wider supply chain support. We are a virgin area; unlike Scotland, we have not had oil and gas before, so we are starting from scratch.
We need technological and geographical ringfencing, CfDs for the test and demo sites in the Celtic sea, and support for stepping-stone projects such as TwinHub, which has a CfD but is facing the challenges of developing that supply chain and the now out-of-date cost of the CfD. The £1.8 billion ports fund can now be distributed quickly in a multi-port strategy that was developed, allowing ports across the region, such as Falmouth in my constituency, to work together to prepare for and benefit from the opportunities that floating offshore wind presents.
The Crown Estate Bill passed through the House recently. Those option fees could, for example, be diverted to local supply chain building. Additionally, outside of the industry, other hon. Members have mentioned that we need that strategy for the ocean as a whole. It is crucial that we have a long-term marine spatial strategy, so that everything in the ocean has its place and we balance energy generation with important industries such as fishing, and with protecting the natural environment.
Creating clear frameworks for each sector would give certainty to developers, which would help speed up the deployment of these renewables projects. Co-ordination would involve linking existing plans, such as the Crown Estate’s whole of seabed programme, the strategic spatial energy plan and DEFRA’s marine spatial prioritisation programme, ensuring that the UK harnesses the benefits of marine renewables while supporting fishing and safeguarding marine habitats.
The deployment in Strangford lough is the company’s first in the United Kingdom of Great Britain and Northern Ireland. It is part of the deployment of the X-flow project, which is led by Queen’s University. The project includes Applied Renewables Research and the Shell Technology marine renewable programme as industry partners, and is supported by the green innovation challenge fund. That fund is led by the Centre for Advanced Sustainable Energy, and is delivered in partnership—again, partnership is how it all works—with the Department of Enterprise, Trade and Employment at the Northern Ireland Assembly. That is another initiative that I pushed in my time as an Assembly Member, but more so as an MP here, working in conjunction with the Assembly back home.
The purpose of the deployment in Strangford lough is to collect data on turbine performance in a real tidal environment, building on laboratory testing undertaken earlier this year in another project—it never sounds great when I speak Italian, so I will not try to pronounce this; an Ulster Scot speaking Italian is a real challenge. [Hon. Members: “Go on!”] No, I am definitely not doing it; it would be embarrassing. Suffice it to say that the company comes from Rome, in Italy—I will leave it at that. The European Commission funded the project, which is called CRIMSON—commercialisation of a recyclable and innovative manufacturing solution for an optimised novel marine turbine project. It is no secret that I am a Brexiteer, but Europe does some good things, and we have to acknowledge that this is one of them.
Carwyn Frost, who is senior lecturer at Queen’s University Belfast, says that the marine laboratory tidal test site at Strangford lough
“is a unique facility providing developers the opportunity to deploy and monitor their technology in real tidal flows.”
I have had the opportunity to experience that a few times as an MP, as well as when I was at the Assembly. At one time, people swam across Strangford lough for charity; I always wondered how anybody could swim across Strangford lough, because the tidal flows are so extreme that swimmers can start in Portaferry and end up well round the tip of the peninsula. Mr Frost went on:
“The X-Flow project will provide unique insight on the impact of turbulent flow conditions on the control of the crossflow turbine and its blade loading. The fully instrumented turbine by ORPC will provide vital data for assessing the impact of turbulent flow conditions on performance, blade loading and control.”
I want to put that on the record because I believe that the project, which is happening right on my doorstep, is incredibly exciting. I have lived in the Ards peninsula for all but four years of my life, so I feel great pride about this.
The work will facilitate condition monitoring by the Queen’s University marine team, which is committed to working in collaboration with partners. That is how it works: big business along with universities and local government. It is great to see Queen’s University leading the way, and I look forward to the conclusion of some of that research. The way forward is to energise the tidal flows at Strangford lough so that we can all gain—homes and businesses across this great United Kingdom of Great Britain and Northern Ireland, who are crying out for it.
I am conscious that others want to speak. I should have said, Ms Jardine, that I welcome you to the Chair. I apologise; I should have done that right away. It is lovely to see you in your place, and it is well deserved.
As an island nation with a rich history of maritime culture, we must recognise the incredible wealth of life beneath the waves and the imperative to protect it. The hon. Member for South Devon referred to fishing; I want to say a quick word about how important fishing is for my constituency of Strangford. Ours is an inland shore fleet, by and large, based in Portavogie in my constituency and further down in Ardglass and Kilkeel. Marine ecosystems, essential for not only biodiversity but the economy, are facing mounting pressures that demand urgent action. Fishermen depend on the sea for their livelihoods, and I want to support those who fish in Strangford lough and out on the Irish sea.
Northern Ireland has a close connection with the sea. We have 650 km of coastline. The sea is home to an amazing variety of marine life, some of which is found nowhere else in the world. Isn’t that great to say? It cannot be found anywhere else but Strangford lough. That reiterates what I have always said: Strangford lough is unique. Strangford is unique, and I am pleased and privileged to be the MP for the area.