Green Energy in the North-west

Justin Madders Excerpts

Wednesday 23rd June 2021 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to see you in the Chair, Mr McCabe. I thank my hon. Friend the Member for Birkenhead (Mick Whitley) for securing this debate and for the excellent points in his introductory comments. As he said, he has a long, proud association with Ellesmere Port through his time at Vauxhall Motors; that company, with many others, is synonymous with my town. It is vital for their future prosperity that we get this right. They all impact the local economy and they also use huge amounts of energy, contributing about 5% of total energy usage in the UK. Faced with that fact, companies are not oblivious to the need to change and have been working together on a whole series of projects that will contribute to reaching net zero and enhance our local economy at the same time. [Interruption.]

[Steve McCabe (in the Chair)]

Order. The Division bell is ringing again. I think we will do the same thing as before and stop until it finishes.

[Justin Madders]

Several Members have talked already about the HyNet North West project, which is vital for the future of industry, not just in my constituency but in the whole sub-region, if it is to meet the challenges of decarbonisation and increased energy costs.

In our area, we are fortunate enough to have an unbeatable combination of industry and geology, which means we can transition to a hydrogen-based economy faster than anyone else. Our current infrastructure can be easily converted to operate with hydrogen. HyNet believes that, as a result, it can capture up to 800,000 tonnes of carbon dioxide every year. As we have heard from various Members already, there is cross-party and indeed cross-border support for HyNet; I refer not just to the border between England and Scotland, but to the equally important border between Cheshire and Merseyside.

It is vital that we get this transition right. Let me give one example of what that can mean. In my constituency, CF Fertilisers employs hundreds of people and supplies about 40% of the UK fertiliser market. It is also the front end of key supply chains for the production of products such as building insulation, Perspex products for car manufacturing, and key bathroom products such as sinks and baths, as well as respiratory medications, so moving to hydrogen will play a huge role in greening large parts of other sectors, too. There is a brighter future down the road, but to get to that point gas prices and emission costs need to remain affordable for companies such as CF Fertilisers over the next five years. They need as much certainty as can be offered by Government. We do not want winners and losers in different parts of the country to be played off against one another. We need to recognise the particular challenges that ammonia producers have. If the Minister needs further details, I am happy to provide them after the debate.

To reiterate a point made by several Members, it is critical to our part of the world that we get the green light to go ahead in phase 1. CF Fertilisers is just one of many businesses where lots of jobs are at risk if we do not get a sustained and consistent approach from Government. There is no doubt that the ambition in my area is there. The question is: will it be matched by Government? Germany is investing 10 times the amount that we are in its quest to deliver the same amount of hydrogen by 2030 that we hope to produce, so we really cannot afford to effect this transition by half-measures. For people’s livelihoods, for the thousands of jobs that it would create and for the future of the planet, we need this transition to be full steam ahead, if colleagues will pardon the pun.

The concept of a just transition is not only realistic but essential if we are to achieve the aims that I think we all want to achieve. When I walk around my constituency in 10 years’ time, I want to see people going about their daily business in electric vehicles that have been manufactured in Ellesmere Port, powered by batteries that have been made locally, driving into secure, well-paid jobs that they can raise a family on in a manufacturing industry that is enjoying a renaissance thanks to the advances we have made in carbon capture and hydrogen. I want us to be living in a time when emissions have gone down but wealth has gone up. That is the future I want. I hope that the Government share our vision and will work with us to make it a reality.