Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the amount to be raised from the 2018 Contracts for Difference auctions when those wind farms come on stream; and in the context of the wholesale price being higher than the strike price, what estimate his Department has made of the potential amount of repayment to Government revenues.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Low Carbon Contracts Company publishes regularly updated short-term forecasts of aggregate Contracts for Difference payments under a range of different scenarios to reflect uncertainty. The Office for Budget Responsibility also publishes a longer-term forecasts of aggregate Contracts for Difference costs including Contracts for Difference payments.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has plans to restart carbon capture and storage projects in the UK.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Government’s ‘Ten point plan for a green industrial revolution’ sets out an ambition to deploy CCUS at scale in 2 of the UK’s industrial clusters by the mid-2020s, and a further 2 by 2030. Phase-1 of the cluster sequencing process looked to identify and sequence CCUS clusters which are suited to deployment in the mid-2020s. On 19th October the Government announced that Hynet and East Coast Cluster have been confirmed as Track-1 clusters for the mid-2020s and will be taken forward into negotiations. We also announced the Scottish Cluster as a reserve cluster.
Phase-2 of this process will determine which emitter projects within, or able to connect to, the chosen cluster locations will receive government support. The Government will continue to engage with the Scottish Cluster throughout Phase-2 of the sequencing process, to ensure it can continue its development and planning.
The Government has committed to supporting four clusters to deployment by 2030 at the latest, and have confirmed in the Net Zero Strategy that the Government will look to deploy 10Mt of annual CO¬2 capture capacity through these additional ‘Track-2’ clusters, helping to achieve the Government’s 2030 capture ambition of 20-30Mtpa.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what his timeframe is for the allocation of the Clean Steel Fund; and what steps his Department has taken to ensure the effective allocation of that funding.
Answered by Nadhim Zahawi
The Department announced the Clean Steel Fund (CSF) in 2019 and it is currently in development. This policy will take time to design in order to be delivered effectively.
Based on previous evidence, complex decarbonisation projects have long lead-in times and take time to set up. Due to this and other factors, the steel sector indicated in response to the 2019 Call for Evidence that their preference is for the CSF to be launched in 2023. Other schemes are available to support the sector and are live now, including the Industrial Energy Transformation Fund.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of progress in Europe on trialling hydrogen-based steelmaking; and what steps he plans to take to ensure that the UK keeps up with international developments in clean steel production.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. Hydrogen-based steelmaking, Carbon Capture, Utilisation and Storage (CCUS), and electrification are some of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of potential additional policy measures needed to support future clean steel production in the UK.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council offers the forum for government, industry and trade unions to work in partnership on the shared objective of creating an achievable, long-term plan to support the sector’s transition to a competitive, sustainable and low carbon future. Hydrogen-based steelmaking, Carbon Capture, Utilisation and Storage (CCUS), and electrification are some of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to trials, pilots and full-scale projects underway in countries including France, Austria, Germany, Netherlands, Spain, Sweden, Italy on using hydrogen to produce primary steel, what steps she is taking to ensure steel production in the UK keeps pace with international competitors on developing and using clean steel production technology.
Answered by Nadhim Zahawi
The UK is monitoring international progress on low carbon steel making trials, using hydrogen and other technologies, and is actively engaged in international initiatives to support industrial decarbonisation innovation, including the Mission Innovation platform and the Leadership Group for Industry Transition.
Decarbonising UK industry is a core part of the Government’s ambitious plan for the green industrial revolution. The Industrial Decarbonisation Strategy, published on 17 March, commits government to work with the Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. The Steel Council is a forum for Government, industry and trade unions to work together on the shared objective of creating a competitive, sustainable and low carbon future for the sector. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.
The UK steel sector will be given the opportunity to bid into industrial fuel switching innovation programmes under the £1 billion Net Zero Innovation Portfolio (NZIP), which is intended to promote switching away from more carbon-intensive fuel sources. The Government has also announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will take steps with the Chancellor of the Exchequer to (a) extend the payback period for Bounce Back Loans for 6-12 months and (b) write-off a proportion of debt incurred under that scheme in response to the ongoing economic effects of the covid-19 outbreak.
Answered by Paul Scully
The Government launched the Bounce Back Loan Scheme (BBLS) to ensure that the smallest businesses could access loans of up to £50,000 to help businesses through this difficult period. Under BBLS no repayments are due from the borrower for the first 12 months of the loan, giving businesses the breathing space they need during this difficult time. In addition, the Government covers the first 12 months of interest payments charged to the business by the lender.
We have always been clear that businesses are responsible for repaying any finance they take out. However, we recognise that some borrowers will benefit from flexibility for their repayments. That is why we announced the Pay As You Grow measures.
Pay As You Grow was designed to provide Bounce Back Loan borrowers more time and flexibility over their repayments by giving them the option to:
On 8 February, the Government announced that these options would be made more generous – removing the requirement to make six payments before accessing the six-month repayment holiday.
Businesses will be able to use these options either individually or in combination with each other. In addition, they have the option to fully repay their loan early and will face no early repayment charges for doing so.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the adequacy of the Scottish Crown Estate’s ScotWind leasing requirements for Scottish supply chain content.
Answered by Kwasi Kwarteng
Responsibility for offshore wind leasing is a devolved area.
The Government has not made any assessment of the Scottish Crown Estate’s ScotWind leasing programme. However, Ministers and officials regularly engage with the Scottish Government.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of including binding contractual clauses for supply chain plan estimates in future contract for difference offshore wind projects.
Answered by Kwasi Kwarteng
The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.
The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.
We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what penalties his Department applies to offshore wind developers who fail to meet estimates made on (a) value and (b) jobs for the UK supply chain in awarded contract for differences.
Answered by Kwasi Kwarteng
The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.
The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.
We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.