Offshore Wind Supply Chain: Tyneside
Katie White Excerpts(1 day, 15 hours ago)
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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(2 weeks, 2 days ago)
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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)
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
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)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
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)