Oil Refining Sector

Katie White Excerpts

Thursday 11th December 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)]

It is a pleasure to serve under your chairmanship, Mr Western. I have really enjoyed the debate, which has been full of passion and emotion. I heard the anger, including in what my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) said, but I also heard that there is a lot of commonality in some of our values and on the transition that we are trying to achieve together. I have genuinely enjoyed listening and I have noted lots of points. There were a lot of questions; I will endeavour to get through them, but if I do not, we may need to follow up in writing to hon. Members.

I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this important debate, and I am grateful to all hon. Members for their contributions. This is a timely opportunity to discuss a matter of strategic significance for our nation’s energy security: the future of the UK refining sector. The industry has helped to underpin our economy and our resilience for decades, and its future deserves our full attention. The Minister for Energy is in Grangemouth today, and I will say more about that later.

Our refineries play a crucial role in ensuring a stable supply of the essential fuels that keep our transport networks running, our industries operating and consumers supplied with the energy they rely on every day. The sector is more than just a fuel; it drives growth in key sectors, supports thousands of skilled jobs in communities and sustains supply chains for chemicals, plastics and manufacturing. Refineries also play a critical role in the wider downstream oil sector. The Humber refinery in the constituency of the hon. Member for Brigg and Immingham is the UK’s only source of anode-grade petroleum coke, which is essential for electrical vehicle production. The Fawley refinery contributed to the global covid-19 response by supplying the specialist halobutyl rubber used to seal vaccine vials.

Importantly, UK refineries are also investing in their own future through decarbonisation and diversification by deploying carbon capture or producing low-carbon fuels to support our transition to net zero. Demand for refined products will continue, even beyond 2050, and the UK’s refineries will remain essential for hard-to-abate sectors such as heavy industry, aviation and maritime. That is why, as my hon. Friend the Minister for Energy made clear in June, the Government are absolutely committed to securing the long-term viability of the UK’s refining sector, and, as set out in the autumn Budget, we are reviewing critical policies to address the challenges that the sector faces.

Those challenges are real. In the 1970s, the UK operated 18 refineries; today, as has been said many times during the debate, only four remain. Falling demand for traditional fuels, global competition from mega-refineries in the middle east, India and Africa, changing trade dynamics and ageing assets all put pressure on UK operations. But with challenge comes opportunity, and the Government are determined to seize the opportunities by driving innovation, supporting investment and ensuring that the refining sector continues to play a vital role in our economy and for our energy security for decades to come.

The Government have already taken significant steps to support the refining sector and the wider fuel sector, and we are committed to do more. We have driven the shift to low-carbon fuels through the renewable transport fuel obligation, and this year we went further with the sustainable aviation fuel mandate, backing cleaner fuels for aviation. The Humber refinery already produces SAF at commercial scale, while Fawley and Stanlow are among the projects backed by our advanced fuels fund, which provides grants to accelerate the next generation of transport fuels. Refineries are playing a key role in driving the UK SAF industry forward, strengthening energy security with a home-grown supply. We are also de-risking investment in SAF production through the revenue certainty mechanism. We are working with industry to cut emissions through carbon capture and low-carbon hydrogen at major clusters such as Viking and HyNet. We will set out a clear plan for industrial decarbonisation to keep the UK competitive.

[Sir Edward Leigh]

The hon. Lady is giving a paean of praise for refineries, so why are the Government taxing them out of existence?

[Katie White]

I am glad that the right hon. Gentleman intervened, as I was going to come on to his points—in particular, his interesting point about the national interest. I say to him gently that I feel we are working in the national interest, but the national interest includes energy security as well as respecting the science of climate change, which is happening. As he is the Father of the House, I genuinely listened to his points, but I was a little disappointed—[Interruption.] He can laugh all he likes, but I listened to his points. He talked about the UK being responsible for less than 1% of emissions. That is the case in terms of nation states, but I think the UK’s impact in the world is so much larger, whether through people following our policy decisions, the impact of our banking sector or our consumption of goods, which has also come up a lot.

We are looking at how we manage the transition, and we want to do it in a way that respects the science, but I am also competitive about where Britain can take advantage of these industries. We want to make sure that we have these industries, including the wind turbines that the right hon. Gentleman mentioned, but we also want to look at how we can make the transition justly and fairly. I will come on to that later in my speech.

Last month, the UK ETS Authority confirmed that current benchmarks will stay in place for the 2027 scheme. That decision gives refineries and other energy-intensive industries the certainty that they need. By maintaining those benchmarks, we are providing stability and breathing space, helping businesses plan, manage costs and prepare for future changes to the scheme.

We are also reviewing compensation for energy-intensive industries. We announced in the autumn Budget that we are assessing the feasibility of including refined products in the carbon border adjustment mechanism, so that imported goods face an equivalent carbon price and the sector’s efforts to decarbonise will not be undermined by carbon leakage. This is the refining sector’s top priority, which the Government are committed to exploring as one of several levers to support the sector’s long-term future. These measures demonstrate our commitment to supporting investment, driving innovation and ensuring that the refining sector remains competitive and resilient as we transition to a low-carbon economy.

Looking ahead, the Government are taking further steps to secure the long-term future of the UK refining sector and to ensure a just transition. The Department for Energy Security and Net Zero has established a dedicated team to work across Whitehall and with industry. A number of Members asked about working across Whitehall; we will continue to do that, to ensure that we maximise the impact. This will guide how we manage the transition, protect energy security and support jobs and local communities.

We will continue to engage closely with the fuel industry to identify practical measures that can strengthen the sector. That is why, in June, we convened the first ministerial—[Interruption.]

[Matt Western (in the Chair)]

Order. Can I have a certain decorum from other Members while the Minister is speaking?

[Katie White]

Thank you, Mr Western.

That is why, in June, we convened the first ministerial roundtable with the refining industry in more than a decade, providing a clear signal of our commitment to partnership and dialogue. As announced in the autumn Budget, we will shortly launch a call for evidence to inform the UK’s long-term strategy for the downstream oil sector. That will seek industry views on the opportunities and barriers to transition, the risks facing the sector and the types of support needed to deliver and manage a competitive transition. These actions underline our determination to work hand in hand with industry. I thank the Scottish Affairs Committee for its recent report, and my hon. Friend the Member for West Dunbartonshire (Douglas McAllister) for sharing it.

The refining sector has faced long-standing challenges, and recent closures underline the scale of change. Petroineos’s decision to end refining at Grangemouth was disappointing. As my hon. Friend said, while the difficulties there were well known, there was no Government plan in place before we took office. Within weeks of doing so, we worked with the Scottish Government to put together a £100 million package to support the community and invest in the local workforce, along with tailored support to secure good alternative jobs. When we came into government, there was no overall plan for Grangemouth from either the SNP or the Tories. We have put one in place.

We are committed to securing Grangemouth’s long-term industrial future. We are working closely with the Scottish Government, the Office for Investment and Scottish Enterprise to attract future investment and transform the area into a clean energy and sustainable technology hub. This effort is already delivering results. We have received over 100 inquiries to date, and the investment pipeline is supported by the £14.5 million in funding announced at the Budget, alongside the National Wealth Fund’s £200 million for co-investment opportunities at Grangemouth.

Today, I can confirm that, along with the Scottish Government, we have made £3 million available for MiAlgae, an innovative biotechnology company that produces sustainable omega-3 rich products, which will create over 130 direct jobs at the site and 310 jobs across Scotland over five years. These steps demonstrate our commitment to a managed transition by supporting communities, attracting investment and ensuring that sites like Grangemouth—

[Matt Western (in the Chair)]

Order. The Question is—

Offshore Wind Supply Chain: Tyneside

Katie White Excerpts

Wednesday 29th October 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)]

It certainly is!

I congratulate my hon. Friend the Member for Newcastle upon Tyne East and Wallsend (Mary Glindon) on securing a debate on this important issue, and on her passion, authenticity and representation of her area. I do not think that any of us are in doubt of those qualities tonight.

I know that this matter is close to the hearts of many Members and their constituents, particularly in our industrial heartlands. This Government are on a mission to make Britain a clean energy superpower, delivering clean power by 2030 and accelerating to net zero. Offshore wind is the beating heart of that mission. The sector is already providing secure clean energy, as well as thousands of skilled jobs, bringing growth and opportunities to communities such as those in Tyneside.

The sector is also an international success story. At the end of June, the UK was generating 16.7 GW from offshore wind. That is the highest amount in Europe, and worldwide we are second only to China—a country with a population roughly 20 times the size of ours. We have consented 4.2 GW since we came into office, and we have 75 GW of capacity in the pipeline, which equates to a 450% increase on our current, world-leading amount. We also have the second most installed floating offshore wind capacity—after Norway—and, at over 25 GW, the largest pipeline of floating offshore wind projects in the world. And yet we are confident that the best is yet to come.

From north-east England to Scotland and the Celtic sea, incredible things are happening across the country in this industry. The Government are determined to do everything we can to help our offshore wind sector to thrive and to deliver for the British people. The contract for difference scheme is vital to our mission to make the UK a clean energy superpower. Allocation rounds 7 to 9 are crucial for the delivery of our goal of clean power by 2030 and for protecting households from volatile fossil fuel prices.

On Monday, we confirmed that a total budget of £900 million is available for fixed-bottom offshore wind in allocation round 7—an increase on the previous allocation round’s initial budget when comparing on a like-for-like basis. That is the initial budget for fixed-bottom offshore wind, but we have the ability to view unsuccessful bids and adjust the budget later if we deem that doing so is good value for consumers. We have fundamentally reformed the offshore wind system to get better value for money. Under the old system, the Government set a budget and had no further control over quantity and price.

We recognise the importance of robust domestic supply chains both in supporting the continued growth of this industry and in ensuring that British workers and communities benefit from the jobs that are created. The Government have therefore set out a package of support, worth up to £1 billion, for offshore wind supply chains. This includes £300 million from Great British Energy to provide upfront public investment, £400 million from the Crown Estate to support new infrastructure, including ports, manufacturing, and research and testing facilities, and £300 million from the offshore wind industry to deliver new investment into supply chains such as advanced turbine technologies and foundations.

[Jim Shannon]

I welcome the Minister to her place and wish her every success and happiness in her role. I will try not to be too hard with my questions. She referred for the contracts for difference scheme. I know it is something that Northern Ireland has to do itself, but at this early stage will she please engage with the relevant Minister in the Assembly, and perhaps help us to move our scheme forward?

[Katie White]

I will ensure that the Minister for Energy is aware of his issues and feeds them in. I am sure he will—I believe he is a friend of the hon. Gentleman.

This is a genuinely transformative package of investment, and by providing that support, as well as clarity in our plans, we are giving investors and developers the confidence to invest in the future. It is expected that the £1 billion package of investment will directly and indirectly mobilise billions more, as well as supporting thousands of jobs in our industrial heartlands. We have also introduced a clean industry bonus to reward projects that invest in coastal communities, industrial heartlands and cleaner supply chains.

As my hon. Friend the Member for Newcastle upon Tyne East and Wallsend said, criteria 2 of the clean industry bonus rewards investments in cleaner supply chains, measured by sign-up to the science-based target initiative for decarbonisation. It so happens that the overwhelming majority of qualifying suppliers are in the UK or the European Union—very few suppliers outside the region qualify under criteria 2. It was great to see the clean industry bonus auction smash bid expectations earlier this year, and we look forward to seeing the investments come in after auction round 7, showing that when the Government lead with ambition, industry is ready to match it.

We also know that we will need even more skilled workers to achieve our mission in the years ahead, and with our analysis suggesting that the offshore wind sector alone could support up to 100,000 jobs by 2030, we are determined to ensure that our industrial communities benefit. That is why we have set up the Office for Clean Energy Jobs, which will provide training and support to the workforce in the clean energy and net zero sectors. Our priority is creating good jobs in Britain’s industrial heartlands, including a just transition for the industries based in the North sea. On 19 October, we published our clean energy jobs plan, which sets out how the Government will work in partnership with industry and trade unions to help workers in all parts of the country to benefit from these opportunities, supporting our existing workforce to find new opportunities, training up the next generation, and supporting our young people to get good, unionised jobs.

Let me turn to our support for the north-east. Tyneside is ideally placed to service the offshore energy sector, including one of the world’s largest offshore wind markets. The Tyne has the capacity to become a major hub for the installation and maintenance of offshore wind farms, and to service the supply chain that will grow from it. In 2023, the UK Infrastructure Bank invested £50 million in the Port of Tyne as part of a debt refinancing package of up to £100 million. That finance was provided to regenerate and redevelop land, building a base for a growing number of clean energy industries in the area, including offshore wind, advanced manufacturing and other renewable activities.

In September, the Port of Tyne announced that it is investing £150 million to transform 23 acres into the Tyne clean energy park, adding 400 metres of deep-water quayside to support offshore renewables, clean energy and advanced manufacturing. According to the Port of Tyne, the redevelopment could create up to 12,000 jobs and deliver £5.6 billion to the economy. I look forward to working with my hon. Friend to help us realise that potential. On the transmission cable over the River Tyne, I confirm that the Government are open to discussing the progress of the proposals to underground the cable with National Grid. The decision for approving the project lies with Ofgem as the independent regulator, which must demonstrate that there are benefits to consumers when approving network projects.

To sum up, our offshore wind sector is a British success story of which we should all be proud. Thanks to the perfect conditions provided by the North sea, as well as our legendary offshore workforce and supply chains, we are perfectly placed to keep leading the way. But this Government are not content with simply winning the race for clean power; we want to build the industries of the future here in Britain and, in so doing, we want to create a new generation of good, skilled jobs for the communities we depend on and to ensure that the economic benefits of the clean power transition are felt in Tyneside and in every corner of our country.

I know that the Minister for Energy had a fantastic visit to the Smulders UK yard in Wallsend in the summer, and he will be happy to meet my hon. Friend the Member for Newcastle upon Tyne East and Wallsend.

Question put and agreed to.

Oral Answers to Questions

Katie White Excerpts

Tuesday 14th October 2025 Commons Chamber

[Mr Speaker]

Welcome, Minister.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)]

Thank you, Mr Speaker. I thank the hon. Lady for her continued advocacy on this agenda. I have enjoyed working with her from the Back Benches and hope to continue to do so in this new post. I am excited to share with her and the whole House the carbon budget growth and delivery plan later this month. What I can say now is that ensuring that low and middle-income families can benefit from the energy transition is absolutely central to our mission. It is why we are rolling out the biggest home upgrade scheme in a generation and why we are moving away from expensive fossil fuels towards cheap, clean British power in homes and communities across our country.

[Carla Denyer]

I welcome the Minister to her new position and thank her for her answer. I know how much she will want the new carbon budget delivery plan to reflect the scale of ambition required while ensuring that the poorest are not asked to pay the price, and also to signal that it is an absolute priority across Government. Can she assure us that the new plan will not just be slipped out, but will be launched properly and, crucially, with the Prime Minister?

[Katie White]

It is slightly above my pay grade to determine the Prime Minister’s diary, but I can assure the hon. Lady that we will proudly launch the carbon budget growth and delivery plan later this month.

[Tom Hayes (Bournemouth East) (Lab)]

12. What steps he is taking to increase co-operation with other countries to tackle climate change.

--- Later in debate ---

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

13. What assessment he has made of the potential implications for his policies of the Climate Change Committee’s 2025 report entitled “Progress in reducing emissions”.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)]

I thank my hon. Friend for repeatedly raising these issues in the House—I know that climate change is of huge concern to her and her constituents. I am proud that Britain has led the way with our independent Committee on Climate Change, established under the Climate Change Act 2008, which has worked effectively for nearly two decades, under leadership from Labour and the Conservatives—I sincerely hope that we can re-establish that consensus. We are grateful to the Committee for its scientific recommendations to the Department. Obviously, it is for the Department now to consider them, and we will report back on our decisions at the end of the month.

[Florence Eshalomi]

I welcome the Minister to her place—it is good to see her among the line of men on the Treasury Bench. I have just finished chairing a meeting of the Housing, Communities and Local Government Committee. One issue that we discussed was decent home standards. Emissions from homes is another key area that we need to bear down on, given the Government’s priority of improving minimum energy performance certificate standards by 2030. I appreciate that the Minister has been in post for only a few weeks, but what discussions has she had with colleagues in the Ministry of Housing, Communities and Local Government to ensure that the private rented sector database will contain information on EPC ratings, so that all our residents can live in warm, secure and safe homes?

[Katie White]

Homes and home standards are absolutely key to decarbonisation for a variety of reasons, including the health benefits for residents. We will consult on the warm homes plan, and the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), spoke about the warm home discount earlier. We are working with MHCLG on bringing forward the future home standard.

[Tim Farron (Westmorland and Lonsdale) (LD)]

A major gap in our ability to make progress in reducing emissions is the disconnect—both literally and figuratively—between small renewable energy schemes and the communities in which they are situated. I think in particular of the Coniston hydro scheme, which faces resilience and sustainability issues relating to the removal of rocks. Is the answer to this not the creation of local energy markets to reduce the gap between service users and energy producers? Will the Government back the urgent delivery of P441 to make local energy markets a reality, save Coniston hydro scheme and service the local community?

[Katie White]

In this role, there are a lot of acronyms. I have to say that I did not know P441 until I sat on this Bench, but I understand from my colleagues that we are looking into that. We support local community projects, and we will be looking at that project and will come back to the hon. Member on P441.

[Mr Will Forster (Woking) (LD)]

14. What steps his Department is taking to support breweries to reduce carbon emissions.

--- Later in debate ---

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

T3. First, we had the VW scandal and now we have Dieselgate 2, with multiple manufacturers accused of faking it and emissions up to 30 times the legal limit. Can Ministers update us on the Department for Transport’s inquiry and promise swift action when it is out?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Katie White)]

I share my hon. Friend’s concern regarding those reports. This Government are focused on making transport greener, including by cutting air pollution to improve health and the environment. We also need to ensure that people are abiding by the rules. The responsible body, the Driver and Vehicle Standards Agency, is pursuing the potential diesel emissions non-compliance using its procedures and the tools available. Officials at the DFT have assured me that the findings from these investigations will be published in a timely and appropriate manner; as an impatient politician, I can assure her that I will continue to press for a prompt and thorough interpretation of “timely”.

[Dr Al Pinkerton (Surrey Heath) (LD)]

T4.  According to the National Audit Office, some 98% of the 23,000 homes fitted with external wall insulation under Government schemes in recent years now need urgent repairs to correct faults that lead directly to damp and mould. What plans does the Secretary of State have to remediate those affected properties, and what does he have to say to the 3,000 residents of Surrey Heath living today in fuel poverty to give them confidence—