Net Zero Strategy and Heat and Buildings Strategy

Alan Brown Excerpts

Tuesday 19th October 2021 Commons Chamber

[Greg Hands]

I thank my right hon. Friend for, as always, putting his question very directly, which I have appreciated over many years in the House. I have mentioned our commitment to nuclear and our commitment to the gas sector as a transition fuel. Fortunately, at the moment, we are dependent largely on domestic gas production, in that 50% of our gas usage comes from the UK continental shelf while 30% comes from Norway. The point here is to ramp up our commitment to low and zero carbon fuels. That makes sense for the environment, for our economic security and for our diversification.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The key point in the announcement today is the fact that Peterhead has once again been betrayed. All along, warm words have been paid to the Scottish cluster, but we have been stabbed in the back again. Classing the Scottish cluster as a reserve is an even bigger insult. What representations has the Minister had from the Scottish Secretary of State about what is happening to Peterhead? Can he also confirm that this is a political decision rather than a technical one, given that the Scottish cluster ticks all the boxes and would have contributed to the hydrogen production target?

The Minister keeps going on about nuclear, but the reality is that, at £23 billion, Hinkley is the most expensive power station in the world. Its strike rate is £92.50 per megawatt-hour, compared with offshore wind at less than £40 per megawatt-hour. What is the capital cost in billions of pounds that the Government are willing to commit to, given that it could be better spent elsewhere? What funding is coming to Scotland on the back of the announcement of the social housing decarbonisation fund and the home upgrade grant schemes?

If we look at Scotland in the round, we see that it has contributed £350 billion in oil and gas revenues over the years. Where is the UK Government’s match funding for the £500 million just transition fund that the Scottish Government have committed to the north-east of Scotland? The Minister talks about levelling up, but his levelling up does not include Scotland. We have the highest electricity grid charges in Europe, which puts renewable energy in Scotland at risk, as it is 20% more expensive than in the south-east of England. That also affects the UK’s net zero trajectory. Scottish energy consumers are now made to pay for their nuclear, which we do not want, and Peterhead has been sacrificed for the red wall constituencies. When it comes to Scotland, the UK Government are not helping us tackle climate change but are instead adopting a scorched earth policy as we head towards independence.

[Greg Hands]

I spent significant time in Aberdeen last week, and I did not meet a lot of people who share the hon. Gentleman’s doom and gloom approach to all things when it comes to energy. I had meetings with Oil & Gas UK, Robert Gordon University, Harbour Energy, CHC Helicopter and Jim Milne of Balmoral Group, and I found a region and a city that are enthusiastic about the energy transition and our North sea transition deal.

I have already mentioned nuclear and the new funding that is available, and I am disappointed that the SNP remains resolutely anti-nuclear, which I think it will regret. I think the Scottish people do not agree with the SNP.

Today’s announcement on carbon clusters is for track 1, and it is not the end of the story—far from it. We have always been clear that we will have two industrial clusters by the mid-2020s, and four by 2030 at the latest. We have announced the Acorn cluster as a reserve. It met the eligibility criteria and performed to a good standard against the evaluation criteria, and we will continue to engage with it throughout phase 2 of the sequencing process to ensure it can continue its development and planning. We remain committed to track 2. This morning the Carbon Capture and Storage Association welcomed today’s announcement as “amazing news” for carbon capture and storage.

The hon. Gentleman asked about home grants. Of course, a lot of these policy areas are devolved. He might have a word with his SNP colleagues in Edinburgh and perhaps get them to participate, as they will get Barnett consequentials. Ironically, the heat pumps scheme for England and Wales will be administered by Ofgem out of its office in Glasgow. Those administering the scheme will not be eligible for it themselves unless the Scottish Government take action to match what the UK Government have said.

Finally, on the North sea transition, energy in Scotland and the move to net zero, I urge the hon. Gentleman for once to take a more positive approach and get with us, particularly as we prepare to host the world in Glasgow in just two weeks’ time.