Oil and Gas
Debate between Gareth Snell and Lizzi Collinge(1 week, 1 day ago)
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Gareth Snell
Hydrogen has to be part of the future mix. Some very interesting tests are being done in Germany, where hydrogen is being mixed with gas to power some kilns and energy-intensive processes. That technology is very expensive, though, and most companies in the UK cannot afford it—only a handful can—so, yes, we need that investment strategy.
Lizzi Collinge
My hon. Friend is making some really good points. There are certain industries that do need gas, so does he agree that we need to shepherd that limited resource carefully, and that the transition in other areas of energy will support us to keep that gas and oil where we cannot replace it?
Gareth Snell
We can shepherd, yes, but the Government have to get to grips with how much we pay for importing that gas. That is where we are dependent on international markets. For electricity generation, the Government enter into contracts for difference, which are very lucrative for suppliers. Why are we not looking at such contracts for gas production? At a point when we expect there to be a transition away from gas—and therefore demand for production and the price of gas will fall away—why are we not saying that there will be some kind of Government-backed contract for difference for suppliers, so that those energy-intensive industries that require gas can get a stable price point for generations to come and we can protect jobs?
I am sure that when the Minister responds, he will turn to the tab in his file about the British industrial competitiveness scheme and the supercharger. I just want to reiterate—because it seems like no one in Government is listening—that those schemes do not apply to gas-intensive industries. As the Chancellor said today, and as Ministers have said from the Dispatch Box in the past, they are for electricity-intensive industries. If we are going to support energy-intensive industries in this country, it cannot be through those schemes alone.