Alan Whitehead
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Dr Alan Whitehead (Southampton, Test) (Lab)
I would like to congratulate the hon. Member for Cannock Chase (Amanda Milling) three times. First, I congratulate her on securing this important debate on the future of coal-fired power stations. Secondly, although I would not like it to be thought that I have an unhealthy interest in her website, I congratulate her on her hard work on the future of the Rugeley site—not just on whether it continues as a coal-fired power station, but on the other possible uses for the site, including conversion to a gas-fired power station.
Thirdly, I congratulate the hon. Lady on bringing to the debate an interesting category dilemma. I am responding as a member of the shadow energy and climate change team, and the distinguished Minister represents the Department for Communities and Local Government, so between us we may be able to provide a complete landscape of discussion in response to her concerns. I will concentrate particularly on the energy issues and the future not just of Rugeley but of coal-fired power stations across the UK.
As the hon. Member for Coatbridge and—
Dr Whitehead
I will get the entire title of the hon. Gentleman’s constituency right one day. He will have to forgive me for not getting the various parts entirely correct. As he said, coal-fired power stations in this country will not have a future unless there is a clear programme accompanying their development to capture 90% of their emissions through CCS.
It was with considerable regret that we saw the termination of the UK’s two potentially world-beating pilot projects for comprehensive CCS; among other things, they would have paved the way for a much more widespread implementation of CCS for new and existing power stations across the country. I do not think that the route to CCS in this country is dead, although I was sad that the Opposition’s call for a comprehensive new CCS strategy from the Government, which we made during the passage of the Energy Bill and which was supported by the Scottish National party, was not incorporated into the Bill. In the light of the termination of those projects, there is an urgent need to develop a viable new way forward for CCS, whether exclusively in this country or in collaboration with other countries, to keep alive the idea that it is possible to attach CCS to power stations in future.
Nigel Adams
I am pleased that the hon. Gentleman agrees that there should be a way forward for CCS, but does he not also agree that, although the Government funding allocation has disappeared, the industry itself could step up to the plate and drive forward a UK CCS industry?
Dr Whitehead
I hope the industry will be involved in that. However, the hon. Gentleman ought to bear in mind that, although a great deal of intellectual property remains from the project that was to take place in his constituency, for example, the project itself was not at all progressed—the CCS industry in this country remains nascent, so for the industry to take on the load of developing itself to any extent over the next period seems to be quite an ask. It is therefore essential for the Government to become involved in strategising and underwriting the development of CCS. I hope that that will now be done, even if it is not at the same level of expense as in the original two projects supported by the Government.
On the future of coal-fired power stations in the UK, it is important to be clear. The proposal is to close all coal-fired power stations by 2025, which has been mentioned this afternoon. The Government have suggested that there should be a consultation leading to the closure, subject to the caveat put forward last autumn by the Secretary of State in her energy reset speech:
“we’ll only proceed if we’re confident that the shift to new gas can be achieved within these timescales.”
That is the caveat on the proposal to close all coal-fired power stations by 2025.
The estimate is that only something like 1% of our electricity will be supplied from coal by 2025 because of the closures of coal-fired power stations for various reasons, other than the Government saying that they should close by 2025—those reasons include the European large plant directive, the age of the plants, the running out of the plants, and the economics of running them. Therefore, those plants are likely to close by that date anyway. One way or another, we face the prospect of pretty much all coal-fired power stations in the UK being closed, and the hon. Member for Cannock Chase rightly raises the issue of what will happen to those sites. What should be done with all of them, not just Rugeley B power station?
A number of us can sympathise with the issue of what happens to a large site that is vacated in or around one’s own constituency. Recently, a Ford transit van plant located on the edge of my constituency closed, creating a 600-acre site. We need to think carefully about assistance for the people who have been displaced from the site by the closure, the different possible uses for the site, and the best use given its connections and how it is going to work in future. Those are all important considerations, and the hon. Lady is clearly alive to all the issues to do with what can be done with the Rugeley B site.
No other world car manufacturer is hovering in the wings, waiting to occupy the Ford site near my constituency and to build cars instead of the Ford Motor Company. However, as far as Rugeley B is concerned, the hon. Lady has looked at whether it could remain, if not as a coal-fired station, then as another form of power station. That particular line of reasoning makes considerable sense. Her suggestion is also germane to the issue of our energy mix in future years: could Rugeley B be converted into a gas-fired power station?
Like the hon. Member for Lichfield (Michael Fabricant), who I am afraid is no longer in his place, I looked at Google Maps and a large National Grid gas line runs right alongside Rugeley B power station. So the question of changing the configuration of Rugeley B from coal to gas is, in principle, very doable as far as the supply of gas to the power station is concerned. The issue would be the circumstances in which any such conversion could take place. My concern is that, in particular instances, the mechanisms in this country for encouraging the development of new gas-fired power stations, assuming that we need a number of them over coming years—
Joan Ryan (in the Chair)
Order. May I ask the hon. Gentleman to consider bringing his remarks to a conclusion as we have only 14 minutes left? Thank you.
Dr Whitehead
Indeed, Ms Ryan, I am about to conclude my remarks, having revealed my thoughts on the idea a gas-fired power station at Rugeley. However, before I do so, I want to spend a minute on the question whether that conversion is feasible under existing arrangements in the capacity market. At the moment, the market provides either underwriting for existing power stations to continue to supply, or the possibility of contracts for new power stations, but there does not appear to be a category within them to enable conversion to take place—certainly not in the 15-year period.
I encourage the hon. Member for Cannock Chase to talk to DECC about whether the capacity market might be amended to take account of such arrangements. A number of coal-fired power stations have been converted to gas recently in the United States, so it is technically feasible. It depends on the kind of power station. Nevertheless, it certainly makes sense—if we are to have new gas-fired power stations anyway, why not have a gas-fired power station where a coal-fired one was? We would not then have the problem of how long the gas-fired station would need to operate over the next period. If that can be done, it would be a positive addition to our fleet of power stations and might be a solution that could apply to other former coal-fired power stations.
Philip Boswell
Given that CCS technology is proven and that the hope for Government funding is not entirely lost, does the hon. Gentleman agree that Government investment in research and development and stable legislation are key to the industry confidence necessary to develop CCS in the UK?
Dr Whitehead
I agree. That is something for the future that applies to the whole power sector. We need a series of stable policy bases on which to proceed with future power provision.
Finally, given the well-known interest of the hon. Member for Selby and Ainsty (Nigel Adams) in biomass and his leadership of the all-party parliamentary group on biomass, he must be aware that Rugeley B was scheduled to be converted to biomass in 2012, but that the company that took over the power station decided to pull the idea. Perhaps a reopening of that interest might be appropriate, although he must also be aware of the question about contracts for difference and how they may or may not come to the aid of biomass in future, given the budgets available.
In conclusion, I encourage the hon. Member for Cannock Chase in her pursuit of alternative uses for the Rugeley B site. If it can be given new life in a different form, that would indeed be a good outcome for the power station.