Oral Answers to Questions

Luke Graham Excerpts

Tuesday 12th February 2019 Commons Chamber

[Luke Graham (Ochil and South Perthshire) (Con)]

rose—

[Mr Speaker]

Order. No, no. Last time I visited Ochil and South Perthshire, the hon. Gentleman’s constituency, it was a most stimulating experience, but my recollection is that the constituency was a considerable distance from Yorkshire. I call Chris Davies.

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[Kelly Tolhurst]

I recognise the distress felt by constituents in cases of insolvency and where companies cease to trade. The redundancy payment service, operated by the Insolvency Service, has already made statutory redundancy payments to 157 eligible employees. Payments in respect of unpaid wages cannot be made while the company is still not in formal insolvency procedures, but we remain ready to act.

[Luke Graham (Ochil and South Perthshire) (Con)]

My office has been meeting representatives of the Coal Authority to talk about geothermal opportunities in Clackmannanshire in my constituency. Will my right hon. Friend meet me to discuss these opportunities?

[Claire Perry]

My hon. Friend is a doughty campaigner for what could be a very valuable source of heat from flooded mine workings. It seems apposite to recognise the effort that went into digging them out, and it would be good to use them in our low-carbon future. As he knows, I continue to look at his ideas with great interest.

Green GB Week and Clean Growth

Luke Graham Excerpts

Monday 15th October 2018 Commons Chamber

[Claire Perry]

The right hon. Gentleman raises an important point. He will know that the signalling of the ending of the current tariffs was done several years ago. He will also know that we have just had a call for evidence, and I am reviewing that information. I will come back to the House shortly with proposals on those policies.

[Luke Graham (Ochil and South Perthshire) (Con)]

Does my right hon. Friend agree that reducing greenhouse gases need not come at the expense of growing the economy? Will she continue to make available funds for innovative energy sources such as geothermal energy from the projects currently being explored in Clackmannanshire in my constituency?

[Claire Perry]

My hon. Friend has already made a powerful case for investment in geothermal. In many constituencies, we have old mine workings and we have some pockets with natural currents of geothermal—the hon. Member for Southampton, Test (Dr Whitehead) has worked hard on that in the past. We do have some opportunities to extract relatively warm water and to use it for district heating. Indeed, one of the announcements I made today was about how we are going to bring forward some of the competitions to improve the way we collect waste heat and potentially reuse it. The projects in hon. Friend’s constituency are interesting, and I am sure he will continue to make strong representations about them.

Brexit, Science and Innovation

Luke Graham Excerpts

Thursday 6th September 2018 Commons Chamber

[Luke Graham (Ochil and South Perthshire) (Con)]

I congratulate the right hon. Member for North Norfolk (Norman Lamb) on the Committee’s report and on how helpful it is in informing this discussion.

We cannot underestimate the importance of science to our country. We are the country of the agricultural and industrial revolutions. The Government’s recent commitment to increase R&D spending by £4.7 billion by 2020-21 is welcome. The UK is still a destination for science, technology and innovation. Whether it is satellites in Glasgow, batteries in Birmingham or FinTech in London, our constituencies have a fantastic opportunity to contribute to world-changing technologies and science that have an impact here in the United Kingdom and right across the globe.

But there is an opportunity that comes with Brexit, and that is our engagement with the wider world—not to substitute the EU with the wider world, but to be in addition to it. Members across the House have reiterated that we want to continue our scientific and technological co-operation with the EU. There are great examples of investment in this country with the EU and worldwide partners, such as the JET programme, mentioned by the hon. Member for Oxford East (Anneliese Dodds), where we are looking ahead to fusion power. Before I reach for my Starfleet uniform, let me say that that is the most exciting new technology. It could revolutionise energy production here in the United Kingdom and around the world, not only providing energy security but helping to defuse a lot of tension in terms of military and governance issues around the world. That project has already contributed so much to European scientific progress and will hopefully continue to contribute to world scientific progress, with the thermonuclear reactor project being constructed in France due to be operational in 2025.

There is a fantastic opportunity for the United Kingdom to not only underscore its commitment to European science projects but leverage in new partners. The University of Stirling, which neighbours my constituency but is making investments in it, has already been meeting partners in the middle east and further afield to look at what joint projects they can work on together post Brexit and what opportunities could be opened up to them.

Immigration has been touched on by various Members. The Government have made a clear commitment to allow skilled personnel into the UK. The report talks about immigration and the ease of verification at the border, which the right hon. Member for North Norfolk mentioned. From my experience on the Public Accounts Committee, where we have looked at customs and border control, I know that it is not just a question of looking at where checks could take place if they were at a border. We should be ambitious in looking at where borders could be. Some of our most successful border schemes have been where we have exported the border to other countries, so that a lot of checks on personnel and goods can take place before they even reach British seas or soil, and it is very clear that all the relevant checks have been made. When they come to a seaport, airport or other port in the United Kingdom, there is then a seamless transition and they can enter our country and hopefully make a fantastic contribution to both science and taxation.

When we talk about science, we are drawn to the sexy projects, such as those with fusion. We talk about the spaceport in Sutherland, and it is fantastic that the first British satellite will be launched from Scotland, but some sectors are not thought about so much. Innovation can happen in the construction sector, such as at Glenalmond Timber in Methven in my constituency, which is working on new manufacturing techniques for prefabricated houses. Diageo has invested more than £7 million in a new technology site in Menstrie, Clackmannanshire, in my community, which will help it to develop more advanced blends; I think everyone in the UK and worldwide will appreciate that product.

So what can the Government do? I hope that my hon. Friend the Minister will make clear his commitment to welcoming skilled people to the United Kingdom to contribute but also to exploring what can be done to help universities across the United Kingdom to have meaningful partnerships with partners in the EU and the rest of the world, as well as supporting the Erasmus scheme, to ensure that young people get opportunities in the UK and British citizens get opportunities right across the world. I hope we will be able to contribute to Horizon 2020 and successor schemes, just as Israel does at the moment. It would be good if we had the clarity that has been provided with the £90 million of funding for the British global positioning satellite system. It would also be great to hear from the Government that, although we are making provisions for that system, we are still trying to work with the Europeans on a European and global system, through which we can share the benefits of our expertise in the UK and the expertise of European partners.

Scientific and technological innovation is one of the most exciting topics that we get to deal with in the House of Commons. It touches every single constituent’s life and can have some of the most transformational effects on them. I am very pleased to see the cross-party support for some of the report’s recommendations. I certainly support it as much as I can, and I hope my Government colleagues will do too.

Geothermal Energy

Luke Graham Excerpts

Tuesday 19th June 2018 Westminster Hall

[Luke Graham (Ochil and South Perthshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Evans, and I apologise for my late arrival to the debate. I congratulate the hon. Member for Bishop Auckland (Helen Goodman) on securing this debate. I was lucky enough to secure an Adjournment debate on geothermal injury in my constituency in Clackmannanshire a few weeks ago on 4 June. The Minister was very generous in her response then and I hope she will be even more so today.

Geothermal is a fantastic opportunity and, as we have heard from different Members today, it could breathe new life into areas that have been without a key industry and key employment opportunities for a long time. It is important that as part of the industrial strategy, which looks at the entire United Kingdom, we use the powers in this place—energy is of course reserved—to make sure that every part of the United Kingdom benefits from geothermal initiatives and that the United Kingdom remains a leader in renewable energy and shows the way, as we have in other areas, such as wind. As I said in that earlier debate, there are a number of international partners and friendly countries that are already far ahead of us, such as El Salvador and Costa Rica, which already bring in 15% of their energy from geothermal sources. We are leading the way on wind and we want to lead the way on geothermal too.

Energy is a reserved function. The hon. Member for Strangford (Jim Shannon), who is now not in his place, mentioned the district heating fund—obviously heating is devolved in different parts of the United Kingdom, and that is £300 million. I hope the Minister and the Treasury could apply a little flexibility on how that fund is applied for, especially when it is linking to geothermal energy projects across the United Kingdom, so that all parts of the United Kingdom can benefit.

My Adjournment debate was very much about Clackmannanshire, an important part of my constituency. It has a long history of mining and milling. We have mines filled with water that is sitting at around 40° C. Geothermal energy enables us to use technology to tap some of that warm water to help with heating and to generate power. That could help not only build new homes, but slash energy bills. In my constituency, in Clackmannanshire, about one in three suffer from fuel poverty. Introducing a new form of energy could help tackle that, as well as slashing up to 50% off the energy bills of the local council. As we know, every council in the country faces funding challenges and that would be very welcome.

Geothermal is not a total solution, but it is an important part of our future energy mix. The leadership that the Government have shown through the industrial strategy highlights the fantastic opportunity we have. We have grasped that with both hands with wind, but we can lead in geothermal energy throughout the United Kingdom. I hope that through this debate and the Minister’s support we will be able to move that agenda forward and deliver for our constituents.

[John Mc Nally (Falkirk) (SNP)]

It is always a pleasure to serve under your chairmanship, Mr Evans, and I thank the hon. Member for Bishop Auckland (Helen Goodman) for securing this debate. Many interesting points have already been made on geothermal energy; it has been quite an education. The hon. Member for Bishop Auckland enlightened me that we have an MP in our midst who delivered projects on geothermal energy and I will make reference to that later on. Her points on disused coalmines are absolutely relevant, as were those raised by the hon. Member for Ochil and South Perthshire (Luke Graham) about the coalmines in Clackmannanshire.

My ears pricked up when the hon. Member for Bishop Auckland mentioned fracking. I would inform those here today that the Scottish Government have won their fracking case. The Court of Session has today rejected a petition by Ineos Upstream Limited and Reach Coal Seam Gas Limited that sought to challenge the Scottish Government’s action in relation to unconventional oil and gas. I am absolutely delighted by that.

[Luke Graham]

Will the hon. Gentleman give way?

[John Mc Nally]

No, I am not going to take any interventions.

[Luke Graham]

It was going to be complimentary.

[John Mc Nally]

I can handle anything at all, but I want to get on with what we are talking about, which is extremely important. With the demise of coalfields, the potential for communities to benefit from new energy possibilities is endless. My home town of Denny in Falkirk is built on coalfields. The whole Falkirk area is built on coalfields and the potential that we have there should be realised. I hope that will happen over time.

As has been mentioned, geothermal energy is the heat stored in the Earth’s crust. The term brings to mind large geothermal energy plants exploiting volcanic sources of heat, such as those found in Iceland. As we heard from the hon. Member for Strangford (Jim Shannon), geothermal energy satisfies around two thirds of Iceland’s needs. To add to that mix, there is also a vast non-volcanic geothermal heat resource—the top 10 to 15 metres of the Earth’s surface act as a heat sink, trapping the sun’s heat.

As we have heard, estimates of the UK’s geothermal power potential vary. There are credible estimates that we could supply 4% to 20% of the UK’s electricity demands, and all of its heat, which is indeed good news, especially if the energy were used to combat fuel poverty. Why people in this energy-rich country suffer from fuel poverty totally escapes me and probably everybody else here. Given the huge potential of this fully renewable resource, why is it not being widely deployed? Will the Minister tell me if any geothermal projects have been awarded to contracts for difference during either of the allocation rounds to date?

There are mature geothermal renewable technologies providing heat and electricity that should and must play their part in the decarbonisation of our energy networks. Then there are ground source heat pumps, where water is pumped through pipes laid within the top 10 to 15 meters of the earth. The pipes absorb heat from the soil, which is then extracted to provide heat. They are cheap to run and are typically small installations, servicing homes, individual buildings or small-scale industry. Ground and water source heat pumps accounted for 6% of non-domestic accredited installations and 15% of domestic accredited installations under the renewable heat initiative between 2011 and April 2018. We surely need to be more ambitious than that.

Deep geothermal plants draw heat from rocks or aquifers heated by the earth’s core, and the UK certainly has geological features suitable for that, especially in Cornwall, northern England, the English midlands and Scotland. As the hon. Member for Ochil and South Perthshire said in a geothermal energy debate on 4 June, there are only nine geothermal energy projects in operation or being planned in the UK: four in Cornwall, two in the north-east of England, one in Southampton and three in Scotland. That is hardly the uptake we would expect for a reliable form of renewable energy that poses few big engineering challenges.

The UK has a poor track record of supporting deep geothermal projects. The UK first showed interest in mapping the country’s geothermal potential during the 1970s oil crisis, but funding was withdrawn as oil prices fell. The practice of short-termism and lack of vision had begun. The first commercial deep geothermal project in the UK started life as a Department of Energy research and development project in 1980 in Southampton, as has been mentioned. The Department of Energy abandoned it as being not economically viable. With a lot more vision than the Department of Energy—perhaps thanks to the hon. Member for Southampton, Test (Dr Whitehead)—Southampton City Council took over the project and developed it into a commercial district heating system, supplying more than 1,000 residential properties as well as hospitals and commercial and civic buildings. I applaud the council for taking that forward and for its courage and vision.

The UK deep geothermal energy challenge fund was set up in 2009 and £4 million was allocated to projects in 2009-10. However, the then Department for Energy and Climate Change halved that in 2010-11. What was it playing at? An early-day motion was lodged by a cross-party group of MPs expressing regret about the decision and 46 MPs signed it. Will the Minister tell us whether I am right in thinking that no further funding has been provided by the fund? I look forward to her answer.

In 2013, the Government withdrew a £6 million grant allocated to the United Downs geothermal power station project in Cornwall on the basis that the project could not attract enough private investment. However, the project went ahead in 2017 after the company was able to crowdsource nearly £4.5 million in private investment using debentures sold by the renewable energy and crowdsourcing specialist Abundance Investment. There seem to be an unending series of obstacles facing projects because of the Government.

The UK’s regulatory landscape and renewable heat initiative create structural barriers to investment in geothermal energy. There is no joined-up approach to licensing geothermal energy in the UK. Developers must navigate the planning system plus a number of environmental permits and consents, and a lengthy, complex process involving local planning authorities, the Environment Agency, English Heritage and other bodies. Unlike a licensing system, a system of permits cannot secure investment in the geothermal sector. As far as I am aware, there is nothing to prevent another developer drilling next door to an existing development once a company has demonstrated a successful well. Will the Minister confirm whether that is the case?

Arrangements for geothermal energy under the RHI actually prevent investment. Asset-based lenders and finance companies do not regard future RHI revenues to be security against lending risks as they would in the case of physical assets. The physical assets of a geothermal energy project have poor portability, since so much of them are stuck in the ground. Asset-based lenders and finance companies do not view the assets as security because they are difficult, if not impossible, to liquidate. Projects cannot lock in to an RHI tariff at the pre-accreditation stage, which adds uncertainty, particularly for projects with long lead-in times. RHI asset ownership rules are complex and prevent companies using an operating lease model, since under the present arrangements the asset finance provider would have to be the applicant receiving the RHI revenues.

It is interesting that a third of the operations are in Scotland, where there is consistency of support. Following a feasibility study of the potential of geothermal energy to provide a renewable source of heat in Scotland, published in 2012-13, the Scottish Government set up their geothermal energy challenge fund. In 2015, the fund invested nearly £250,000 in five feasibility studies. The projects are an important step towards demonstrating how geothermal energy could cut the estimated £2.6 billion a year spent on heating by householders and the non-domestic sector. They are in the Aberdeen Exhibition Centre; Guardbridge in Fife; Polkemmet in West Lothian; Hartwood in North Lanarkshire; and Hill of Banchory in Aberdeenshire. A small investment returns very large benefits.

A further four proposed projects were invited to contact the Scottish Government’s low carbon infrastructure transition programme team to discuss possible early development support to help them in their proposals. Scotland’s first deep geothermal heating system, the HALO 2 km deep borehole being drilled near Kilmarnock, received a £1.8 million grant and is under way as we speak. The Scottish Government’s investment in renewables is underpinned by a coherent decarbonisation strategy and is in turn underpinned by an all-party agreement. The political certainty, and the consistent political and financial support for that and for renewable energy as a whole, sends a message to businesses that the Scottish Government and Parliament are a friendly environment for investment in geothermal technologies.

Today Scotland may have a third of the UK’s planned or operational geothermal energy plants, but it seems that proportion will increase steeply in the near future. As with onshore wind and wave energy, the UK Government could learn much from the Scottish Government’s approach to supporting geothermal energy development. We are at a privileged moment in time developing renewable energy. The Scottish Government and Parliament are realising that ambition on behalf of all our communities.

Finally, I have been clear that any threat to Scotland’s distinctive and ambitious approach to environmental standards and climate change is completely unacceptable. The best way to ensure our environmental ambitions is to ensure that Scotland’s devolved powers continue to be respected.

Oral Answers to Questions

Luke Graham Excerpts

Tuesday 12th June 2018 Commons Chamber

[Claire Perry]

I have always admired the hon. Lady’s passion. Again, as I have said multiple times, we absolutely are very keen to scrutinise this deal. It has to deliver the low-carbon energy we all want and the jobs we all want at a price that is affordable for the consumers we all represent.

[Luke Graham (Ochil and South Perthshire) (Con)]

T5. Following my Adjournment debate on 4 June, what steps has my right hon. Friend been able to take to progress geothermal energy in Clackmannanshire?

[Claire Perry]

Those who missed the Clackmannanshire energy project Adjournment debate missed a massive treat: it was a very enjoyable, informative debate. We are very supportive of the project. My officials are working closely to explore funding opportunities, and I commend my hon. Friend for his continued leadership in this important area.

Geothermal Energy: Clackmannanshire

Luke Graham Excerpts

Monday 4th June 2018 Commons Chamber

[Luke Graham (Ochil and South Perthshire) (Con)]

Thank you, Mr Deputy Speaker, for granting this Adjournment debate on geothermal energy in Clackmannanshire. I am grateful for the opportunity to talk about this potentially exciting, new, greener renewable technology in the energy sector and its ramifications for Clackmannanshire, Scotland and the whole of the United Kingdom.

Known as the wee county, Clackmannanshire is the smallest council area in Scotland, situated in the south-western corner of my constituency. It is tucked away beneath the Ochil hills, flanked by Stirling to the west, Kinross-shire to the east and the River Forth to the south. Despite being home to successful companies such as Diageo, United Glass, the William Brothers Brewing Company and innumerable small and medium-sized enterprises, Clacks is a former industrial and mining community and still has some of the most deprived areas in our country. Meanwhile, geothermal energy is a form of renewable energy in its relative infancy in the United Kingdom, with opportunities still being identified and explored, and it is struggling to enter the mainstream of energy provision in the United Kingdom.

While I am sure no one would suggest that Adjournment debates usually only cater to a limited audience, addressing the niche interests of Members, with limited implications for the wider country, on the surface this debate on a relatively minor energy source in one of the smallest council areas in the country may ungenerously be described as such. However, given the limited exploitation of geothermal energy in the United Kingdom and the potential for its use in Clackmannanshire, the implications of investment and development of geothermal for the wider industry sector and the country are enormous.

[Jim Shannon (Strangford) (DUP)]

I am grateful to the hon. Gentleman for giving way. I am here to support him and congratulate him on securing the debate. Does he agree that the impact of such projects on the local economy, and especially the long-term benefits, has to be a significant consideration for Government? Everybody in the United Kingdom could benefit from projects just like this.

[Luke Graham]

I thank the hon. Gentleman for his intervention, and I could not agree more. One reason why I applied for this debate is to espouse the long-term benefits of these projects and how that will align with the country’s industrial strategy.

Before I get too far ahead of myself, I want to look at the broader industry and the place of geothermal within the industry. According to the House of Commons Library, the total energy sector in the UK was worth £24 billion in 2016. In the same year, the industry as a whole invested £11 billion—the equivalent of £1 in every £16 invested in the UK. It is an industry that directly employs 148,000 workers and supports a further 582,000 through the supply chain, consulting and other energy-related activities. That is a total of 730,000 jobs supported in the UK by the energy sector. Meanwhile, around 22,000 people in Scotland are employed in the energy sector, with the oil and gas sector being a major part of that. The energy sector therefore represents an important industry not just in terms of its contribution to the total GDP of the United Kingdom, but in terms of jobs, investment, research and development and supporting industries.

Energy is important. It heats our homes, cooks our meals and runs the appliances, amenities and communications devices without which our tablets, laptops and businesses could not function. In short, it impacts on every aspect of 21st-century life. The 19th and 20th-century sources of energy have long since ceased to be seen as the future. Renewable energy sources are an ever increasing part of the suite of energy sources, and Scotland has been at the forefront of such innovations, with wind and sea power particularly prevalent in its contribution. I wholeheartedly support those steps and hope that the UK will continue to be at the forefront of such renewable energy options—not just wind and sea but others too, such as geothermal.

You may ask, Mr Deputy Speaker, why geothermal energy? In simple terms, geothermal energy is valuable because it is generated and stored in the earth. It is heat extracted directly from the earth. It is generally available via shallow geothermal ground source heat pumps, which use the heat stored in the earth to generate electricity or provide heating. Geothermal is considered a renewable form of energy due to the vast amount of heat inside the earth and the continuous production of additional heat derived effectively from the earth’s core.

It is important to understand that geothermal energy is not the same as fracking, as some have tried to claim. For clarity, geothermal technology uses things such as mine water, closed boreholes and surface water, none of which has any similarity to fracking. Fracking is a process used to break up rock at great depths to release gas from ancient plant deposits. In the UK, this typically happens 2.5 km below the surface using a process involving large diameter boreholes and huge hydraulic pressures, and those are part of the concerns currently being debated. By contrast, with geothermal, the typical closed loop borehole, such as the one that would be used in Clackmannanshire, is no more than 200 metres deep, with a small diameter, and is installed in the same way and to the same standards as a water well.

We should consider the environmental impact, or relative lack thereof, of geothermal energy. It does not require combustion, unlike traditional energy plants, so it emits very low levels of greenhouse gases. It also eliminates the mining and transportation processes involved in fossil fuel energy generation. Finally, it takes up very little surface land, putting it among the smallest footprint per kilowatt of any power generation technology, including coal, nuclear and other renewables.

[Douglas Ross (Moray) (Con)]

I congratulate my hon. Friend on securing this very important and interesting debate. He is speaking specifically about the size of these developments, but, as he mentioned wind energy earlier, does he accept that there is concern in my Moray constituency, as well as in many parts of Scotland and, indeed, of the UK, that large-scale windfarms are scarring our communities? Indeed, Moray has reached saturation point for the number of wind turbines and windfarms we can have, and we should really be looking at smaller methods of renewable energy.

--- Later in debate ---

[Luke Graham]

I would not dare to claim to know more than my hon. Friend about his constituency, but I would say that a key part of the industrial strategy is to have more regional facilities and smaller-scale projects, and I am hoping to advocate doing so tonight.

As I was saying, for comparison, the carbon footprint estimate for an oil boiler is 310 to 550g CO₂eq/kWh or—for those who do not know—grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. For gas boilers, the figure is 210 to 380, for biomass boilers it is somewhere between 5 and 200, although typically they are below 100, while the carbon footprint range for a solar thermal system is 10 to 35 grams of carbon dioxide equivalent per kilowatt-hour of electricity generated. By comparison, the figure for geothermal is only 10. As a result, geothermal energy systems are becoming an increasingly popular low-carbon energy system of choice.

Yet geothermal energy is barely utilised in the United Kingdom. In a Westminster Hall debate on clean growth energy back in March, there was a great deal of enthusiastic support among the small number of Members present. Those who spoke in support of geothermal energy in that debate came from areas where it already exists, or at least where it is being planned. I do not consider it a coincidence that where geothermal energy has already been explored and exploited, there was support and enthusiasm for it. It evidently works, and indeed, we should take note of the enthusiasm expressed in that debate. It is a clean energy source, with the potential to bring jobs and investment to our constituencies, and given the UK’s long history of mining, I refuse to believe that only Clackmannanshire has the potential for geothermal energy to be developed. There was of course one person in that Westminster Hall debate who enthusiastically supported the development of geothermal energy in the United Kingdom—the Minister responding this evening.

The UK has a target that, by 2020, 15% of its energy will be met by renewables. In 2008, renewables constituted just 2.25% of energy sources in the UK. By 2014, this had risen to 7.1%, and 8.3% by 2015. I could not find any more recent figures, so I would be grateful to the Minister if she told us how the UK is performing in 2018, and how it expects to meet its target in 2020.

Although geothermal is still relatively new to the UK, this type of energy is not a particularly new technology. For example, geothermal heating is used in over 70 countries already, while 24 already use geothermal electrical production systems. Furthermore, five countries—Iceland, El Salvador, Costa Rica, Kenya and the Philippines—generate more than 15% of their electricity from geothermal sources. However, across the whole United Kingdom, I could find only nine geothermal energy projects that are in operation or are being planned. Four are in Cornwall, two are in north-east England, and one—the original—is in Southampton. There are two small mine-water geothermal schemes in operation in Scotland: Shettleston in Glasgow and Lumphinnans in Fife, as well as a forthcoming project in Kilmarnock. To put that in context, the fifth largest economy in the world is being outdone by the 106th, 101st, 76th, 68th, and 39th largest economies respectively in geothermal development and energy production.

We still have a way to go. Evidently, we can and should be doing more to invest and develop that clean energy source. In 2013, only 900 jobs in the UK were supported by geothermal energy—500 were directly supported, and 400 indirectly. Given the potential for the expansion of that technology in the UK, there is a great deal of potential for the jobs market, both directly and indirectly. High-quality, skilled jobs would be supported by the development of the sector.

Here is the crux of the debate—why Clackmannanshire? Development of geothermal in the UK, as I have said, has been relatively limited so far, largely due to the availability of cheap North sea oil and gas. Geothermal energy is plentiful beneath the United Kingdom but, admittedly, it is not readily accessible, except in specific locations. One such location is Clackmannanshire. Abandoned coal mines in Clackmannanshire could become a source of energy, as the water that has poured into the mines since they closed has been warmed up by the rock surrounding it. It is hot enough to be used for a low-temperature heating system through a heat exchanger, with more potential for it to be used for energy production.

[Stephen Kerr (Stirling) (Con)]

My hon. Friend is speaking extremely well about this subject, and I bow to his knowledge in this area. On the notion of creating electricity from heat, would that extend to, for example, sewage? Would it be possible to create district heating systems in that way? Is it the same technology? Perhaps he can enlighten me.

[Luke Graham]

On district heating systems, yes. On sewage systems, I am not sure. That is something that we should explore, but when we look at the broader uses of the technology, certainly in energy and electricity production, as we have seen in other countries around the world, absolutely that can be done. There are exciting, direct uses of geothermal energy in countries such as Kenya, ranging from hydroponic farming to powering small communities. There are a number of exciting projects in operation, which is why it is important to run a pilot and secure investment so that we can realise the true potential of the technology.

While it is not often that Clackmannanshire has a competitive advantage over other local communities, we have a relatively unique geographical opportunity. However, there are more reasons to invest in Clackmannanshire. It suffers from high levels of deprivation, and a significantly high level of fuel poverty. Local authority surveys have identified the fact that one in three households in Clackmannanshire suffers from fuel poverty, rising to 49% among pensioners. Heat accounts for nearly half of energy consumption in Clacks and a third of its carbon emissions. Roughly 80% of that is consumed in homes and other buildings.

The local economy is vulnerable. It has a higher than average unemployment rate, the third lowest job density in Scotland, below average earnings, and of all the local authorities in Scotland, Clackmannanshire has the lowest rating for skilled qualifications. That is not to talk Clackmannanshire down. It may be the known as the wee county, but as I said in my maiden speech,

“it is not size but what you do with it that counts.”—[Official Report, 27 June 2017; Vol. 626, c. 524.]

I want to highlight some of the challenges in Clackmannanshire, but also give an idea of what a significant investment in the area would help to overcome. I want to look at the difference that such an investment could make in Clackmannanshire. It goes without saying that investment would bring valuable, skilled jobs to the area, and that is important, but it is more than that. Investment would help to develop spin-off businesses that would support the industry both directly and along the supply chain. We have already seen that. I was lucky at the weekend to be interviewed by the BBC, and local companies and local champions of geothermal have come forward in the past few days, keen to work with the Government and public and private sector bodies on a project not just in the county but in the wider region.

Developing geothermal energy in Clackmannanshire could see the area become renowned in the UK, not just as a leading low-carbon energy provider but for its energy innovation.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I am grateful to my hon. Friend for making such a powerful case for this initiative in his constituency. I am sure that there are other parts of Scotland that could benefit from his insight. What opportunities can he see for this initiative being delivered as part of the UK Government’s industrial strategy? Does he recognise that many projects could be delivered in Scotland as part of that overall initiative?

[Luke Graham]

I could not agree more; the industrial strategy is about having a stronger blueprint for the whole of Britain and it is important that the investment, especially in reserved areas such as energy, is spread throughout the United Kingdom in a fair manner to attract the true opportunities that are found in each individual area.

Developing geothermal energy in Clackmannanshire would make the county more attractive to investors, businesses and developers. By helping to establish a resilient, environmentally-friendly heating and energy system, it could provide affordable, low-carbon heating and energy to local households and businesses. Furthermore, by delivering estimated savings of 50% for the local authority, it would free up much needed additional funding to invest back into local services, which have faced substantial cuts.

The Department for Business, Energy and Industrial Strategy has stated that we need to move away from having one energy network towards having smaller, more regional networks. That is precisely what we can do and what we hope to do in Clackmannanshire. By reducing energy bills, it will help us to create a more stable, affordable energy market in the area, which is central to improving and maintaining living standards in the community. In turn, it will help Clackmannanshire to become more self-sustaining, allowing it to support businesses, improve educational opportunities, and tackle social inequalities and the fuel poverty crisis.

Geothermal energy is not the solution to every single issue experienced in Clackmannanshire, despite what I have said tonight, but it would be a significant step in the right direction. One of my biggest frustrations since becoming an MP almost a year ago to the day has been the “devolve and forget” approach that has been allowed to permeate since devolution nearly 20 years ago. However, energy is not devolved. Devolution does not mean separate and it should not act as a wall. Devolution was just a means to bring powers closer to the people who need them in order to deliver things better. This is still the UK Parliament and Scotland is still part of the UK. To be clear, without Scotland there is no United Kingdom.

Scotland has the infrastructure and expertise in place to lead the United Kingdom in geothermal energy and contribute towards the UK’s clean growth strategy. That is why I urge the Minister to put Scotland at its heart when considering Government investment and to put geothermal energy in Clackmannanshire at the forefront of that investment. Scotland has been at the forefront of every major industrial development of the United Kingdom, from the industrial revolution in the 18th and 19th centuries to oil and gas in the 20th and 21st centuries. It has the infrastructure and expertise to lead the UK, and putting the investment in now could be transformational for the area and for the wider UK.

There is no law stopping the UK Government investing directly in Scottish local authorities, least of all the devolution settlement, the various Scotland Acts or the Smith commission, especially when the right opportunity arises. This is the right opportunity—an opportunity to invest in and improve our renewable energy sector; an opportunity to lower our carbon footprint; an opportunity to tackle fuel poverty; and an opportunity to bring jobs, prospects and prosperity to one of the most deprived areas of Scotland. I urge the UK Government to grasp this opportunity and to let the people of Clackmannanshire lead the rest of Scotland and the United Kingdom in growing geothermal energy.

I make no apologies for keeping Clackmannanshire firmly in the minds of the UK Government and the decision makers who lead it, as I want to maximise the investment coming to the wee county and to my wider constituency of Ochil and South Perthshire from Westminster. Developing geothermal energy in Clackmannanshire has the potential to combine heritage with new technology to bring investment to the county, turning a so called negative legacy into jobs, training and long-term opportunities for the county. This is what I believe Government is for—not to deliver every job, but to ensure that every part of our country can take advantage of the opportunities afforded to it. I hope that the Minister will help Clackmannanshire achieve its potential this evening.

Marks & Spencer

Luke Graham Excerpts

Thursday 24th May 2018 Commons Chamber

[Claire Perry]

I am not going to comment on hypotheticals, both pre and post Brexit, in terms of the impact on the economy. However, the right hon. Gentleman points out the absolute requirement both to satisfy the referendum result, in terms of leaving the European Union, and to ensure that we have as close and as frictionless a trading relationship as possible, so that we do not see food prices or the prices of goods and services going up for these very integrated operators in the UK.

[Luke Graham (Ochil and South Perthshire) (Con)]

I commend the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) for raising the issue of accessibility to the high street. I have witnessed the closure of shops in the high streets in my constituency and the movement away from high streets towards out-of-town parks, and I think we should try to stop that.

Companies in my constituency are paying some of the highest business rates in Europe, and, obviously, Scotland’s business growth is below that of the rest of the United Kingdom. May I ask the Minister to work with me and with other colleagues—on a cross-party basis, if needs be—and with the devolved Administrations to increase business growth in Scotland, so that we can at least match the rest of the United Kingdom?

[Claire Perry]

Absolutely.

My hon. Friend referred to disability access, and I think we still need to do more about that. We must bear in mind that it is not enough for companies simply to relocate out of town if people need cars or some other form of transport to get there.

Energy Efficiency and the Clean Growth Strategy

Luke Graham Excerpts

Thursday 8th March 2018 Westminster Hall

[Luke Graham (Ochil and South Perthshire) (Con)]

It is a pleasure to speak under your chairmanship, Mr Walker. I, too, commend my hon. Friend the Member for Eddisbury (Antoinette Sandbach) for securing the debate. Many contributions have focused on domestic energy efficiency, and I will touch on that, but I also want to broaden the debate and talk about energy efficiency in the commercial and industrial market, which is crucial if we are to meet our emissions targets.

The clean growth strategy was introduced last year by the Department for Business, Energy and Industrial Strategy with the express intention of accelerating the pace of clean growth, allowing the UK to meet its greenhouse gas emissions targets while ensuring that we maintain the strong economic growth that has been a key success of the Conservative Government during the past eight years. It is worth noting that the clean growth strategy has been introduced not to address an issue, but to improve, accelerate and maximise an already successful set of Government policies.

Since 1990, the UK’s GDP has increased by 67%, while emissions have gone down by 42%. In comparison, the G7’s GDP has increased by 61%, but its emissions have gone down by only 3%. That shows that the UK has led the way in growing the economy without jeopardising the environment. To put that another way, protecting our environment need not undermine our economy.

The argument that environmental protection is incompatible with a thriving economy holds little water. Our success in creating more jobs while reducing emissions shows that we need not choose between economic growth and environmental measures. The UK is therefore clearly right to seek to maximise the economic benefits of our transition to a low-carbon economy.

With regard to Scotland, energy efficiency was of course devolved in 2016, but energy policy is still a reserved matter. Particularly important for Scotland is the recognition of the importance of carbon capture and storage to decarbonising UK heat, industry and power. That has been mentioned by Opposition Members. For Scotland, CCS is a vital tool to reduce emissions, and the Minister should be commended for putting it firmly back on the Government’s agenda.

In the UK, we have world-leading oil and gas skills and infrastructure—predominantly based in the north-east of Scotland—which could be perfectly suited to CCS. However, the opportunity to repurpose many of those assets before decommissioning is diminishing. That is why putting the clean growth strategy into action now is vital for the UK as a whole. The economic benefits of CCS to Scotland and the east coast of England combined have recently been estimated at more than £163 billion during the next 60 years, making it imperative that we maximise this opportunity.

It is therefore worth considering the Caledonia Clean Energy Project, which could be well placed to kick-start the UK CCS industry. The Caledonia Clean Energy Project would see the development in Scotland of crucial low-carbon infrastructure that not only provided clean, reliable power to up to 1.3 million homes, but facilitated the decarbonisation of Scotland’s major industrial hub, Grangemouth. If that were not enough, the project could also produce enough clean hydrogen every day to power about 500 hydrogen-fuelled buses.

There is not a strict definition of energy efficiency at industrial level, but surely a helpful one would be the sort of energy efficiency that not only helped the UK to lower its emissions and meet emissions targets, but put the UK at the forefront of economic innovation in the energy market.

It is clear that Scotland specifically has the exciting potential to be a major part of the clean growth strategy, but if there is one criticism that can be levelled at the strategy, it is that it does not provide the sufficiently clear policy signal that investors in CCS need to justify what could be multiple billions of pounds of inward investment in the UK and Scotland. It is important to remember that although energy efficiency is devolved—we have heard here today examples of best practice in England and in Scotland—energy policy is still a reserved matter. That is why having a joined-up strategy that goes across the UK is so important—to ensure that we can pool our resources.

Where we have large energy assets such as nuclear, wind—we have world-leading wind farms in the North sea—and oil and gas, we can pool our resources, but we can also leverage some of the research and innovation that the UK is so famous for to promote micro energy efficiency and energy generation schemes and decentralised projects across the UK. The clean growth strategy seeks to promote that and it is a UK-wide strategy, which I very much welcome.

I would like the Minister to comment on how the clean growth strategy could deliver commercial-scale carbon capture to Scotland and other parts of the UK, before the oil and gas infrastructure is decommissioned and our best offshore engineers move abroad to work in other markets. Will she meet me and other Scottish Conservative colleagues to discuss the matter further?

As was mentioned by my hon. Friend the Member for Wells (James Heappey), we should be looking at a number of different energy measures. As a strategy, it is right that we look at both the top level and the micro level. I will not repeat some of the points so articulately put by my hon. Friend when talking about decentralised energy schemes and micro energy schemes, but I will just add some of the geothermal schemes. Certainly in my constituency, in Clackmannanshire, we have been looking at former mines and whether it is possible to use them as sources of geothermal heat.

[Claire Perry]

As a matter of principle, it would be a pleasure to meet with anybody. As everyone knows, my door is open. Secondly, the hon. Member for Southampton, Test (Dr Whitehead) and I had that conversation only this week. I suspect that many people know about this whole geothermal mine water thing. I am really interested in this technology. If there are groups out there that are interested in promoting this and suggesting what can be done in a cost-effective way, bring it on. Let us look at what we have actually done—we have already dug the holes—and see whether we can get some more benefit for those communities.

[Luke Graham]

I thank the Minister for her intervention. Fortuitously, Clackmannanshire is up for a city deal, so there would never be a better time for her to come and get involved in these energy projects. I will definitely be following up with her on that as soon as we leave Westminster Hall.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

As we are all getting on this afternoon, I should like to invite the hon. Gentleman to come and see me in Southampton, to look at its geothermal energy scheme, which has been going since 1984. Unfortunately, it is still the only one in the country, but I trust that, with the Minister’s good offices, the geothermal schemes that the hon. Gentleman has mentioned could shortly get under way to join Southampton in its geothermal pioneering position. I really do commend what he is thinking about for geothermal. I think a lot of development is possible in terms of both mines and aquifers. I hope he will continue on his path of supporting that.

[Luke Graham]

I thank the hon. Gentleman for his intervention and will gladly take up his invitation.

[Antoinette Sandbach]

Given the new Thornton campus in Cheshire, which is specialising in geothermal, may I suggest that on the way to Southampton from Scotland my hon. Friend call in to see some of the leading research that is being done at the University of Chester on the opportunities for geothermal and how we can roll that out much further across the country?

[Mr Charles Walker (in the Chair)]

Mr Graham is now going to make some progress.

[Luke Graham]

I thank my hon. Friend for her kind intervention and, again, invitation. I would certainly be keen to visit both places, as my constituency arrangements allow.

Scotland has been at the forefront of every major industrial development in the UK, from the industrial revolution in the 18th and 19th centuries, to oil and gas in the 20th and 21st, so it has undoubtedly contributed to the UK’s emissions over the years, but it has fantastic potential, through infrastructure and existing expertise, to be the leader on the clean growth strategy in the UK, and to drive the UK as a global leader in economic growth through emissions reductions. I urge the Minister to put the entire UK at the centre of the Government’s clean growth strategy in the months and years ahead.

--- Later in debate ---

[Drew Hendry]

That is something to be aware of. I thank the hon. Gentleman for raising that point and look forward to the Minister’s response.

The hon. Gentleman mentioned home insulation, which must be taken forward much more rapidly—I know I am using that word a lot today, but it is important because this is somewhere where we can make a real difference very quickly. In Scotland, as he pointed out, there is four times the progress on insulation. I make that point because it is important to thank the people, in particular in organisations such as Warmer Homes Scotland, who have been on the ground, working with consumers and making the breakthroughs by talking to people and persuading them to take on the new measures. If any hon. Member in the Chamber or anyone else wants to look at that, they will see the fantastic work being done.

[Luke Graham]

The Warmer Homes scheme was a fantastic initiative. I know that some of the terms changed in 2017 because a number of constituency cases were brought to me, with people sometimes being disadvantaged. Will the hon. Gentleman join me in working on addressing some of those issues to ensure we are still reaching as many people as we can?

[Drew Hendry]

I will come in a moment or two to what the Scottish Government are doing.

The hon. Member for Birmingham, Selly Oak (Steve McCabe) talked about energy efficiency schemes, and in Scotland some of those are changing the housing landscape. I want to point out one of the commercial companies, a private developer from the north of Scotland: Springfield Properties. It is not only looking at more energy efficiency measures in its buildings, but in Perthshire, where it has a new development of thousands of homes, it is putting in electric vehicle charging points for every single house. That is a very innovative thing for a private developer to be doing, adding to the fact that Scotland is leading the way in electric charging for vehicles.

Oral Answers to Questions

Luke Graham Excerpts

Tuesday 30th January 2018 Commons Chamber

[Greg Clark]

The right hon. Gentleman is a previous occupant of my post, so he knows that the powers that the Secretary of State has over these things have to be exercised in a quasi-judicial way. Therefore, I should not, and cannot, comment on that case. However, he will know, because he has written to me, that I have spoken to both chief executives, and I am keeping it under close review.

[Luke Graham (Ochil and South Perthshire) (Con)]

It is good to hear my right hon. Friend talk about the importance of aerospace. Will he consider the aerospace initiative that is being proposed in Kinross-shire in my constituency as part of the Tay cities deal, and will he or other colleagues meet me to discuss it?

[Greg Clark]

My colleagues and I will be very happy to meet my hon. Friend to develop the full potential of aerospace in his constituency.

Delivery Charges (Scotland)

Luke Graham Excerpts

Wednesday 20th December 2017 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to serve under your chairmanship, Ms Dorries.

I congratulate my hon. Friend the Member for Moray (Douglas Ross) on securing the debate. My input is not going to be as romantic as his, but I was 47 years married yesterday, on 19 December; I remembered late last night, but I did make the phone call this morning. [Laughter.] There was a lovely minister; he must have been very good at his job.

A number of people have contacted me regarding surcharges, but at a recent surgery one of my constituents from a lovely village called Barrhill, raised concerns about delivery charges imposed by various private companies. Barrhill is an Ayrshire village with a small population. It is 12 miles inland from Girvan, which sits on a busy artery, the A77, which my colleagues from Northern Ireland will be familiar with. For the inhabitants it is an idyllic part of the countryside for them to call home; for the delivery companies it is apparently a remote rural location attracting, in some cases, a significant surcharge, which is often disproportionate to the value of the goods being delivered.

[Luke Graham (Ochil and South Perthshire) (Con)]

My hon. Friend is making a strong speech. Does he agree that it should not matter what size the village or town—everyone should have equality when it comes to these payments? In my constituency, people in the PH and FK postcodes have the same disadvantage; does he agree that that is something they should not have to endure?

[Bill Grant]

I do indeed agree with my hon. Friend about the equality—that is the key word—aspect of deliveries.

The term “remote” is open to interpretation. Could the issue be the centralisation of distribution hubs? Could the dispatch hubs look seriously at the bulky and excessive packaging for small items, where a ballpoint pen is delivered in a box the size of a shoebox, and thereby either increase the delivery capacity of their vehicles or permit the use of smaller, more fuel-efficient vehicles for rural, remote deliveries? Some company websites confirm that a surcharge is applied to remote location deliveries, with “remote” defined as highlands and islands, a postcode that is difficult to serve or a suburb or town that is distant and inaccessible or infrequently serviced. There is a whole range of excuses.