Oral Answers to Questions Debate

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Oral Answers to Questions

Nigel Adams Excerpts
Thursday 19th June 2014

(9 years, 10 months ago)

Commons Chamber
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Nigel Adams Portrait Nigel Adams (Selby and Ainsty) (Con)
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13. What estimate his Department has made of the cost to the public purse up to 2050 of limiting the use of biomass in the decarbonisation of the UK’s energy system.

Michael Fallon Portrait The Minister of State, Department of Energy and Climate Change (Michael Fallon)
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Biomass has an important role to play in meeting our renewables target and our future energy needs. We are supporting about 3.4 GW of bio-energy technologies, including waste technologies, through the renewables obligation. As I told the House earlier, contracts have been signed for up to 1.4 GW of biomass under the early investment contracts.

Nigel Adams Portrait Nigel Adams
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Within the levy control framework allocations in July, to what extent is the Minister considering the dispatchable and secure supply of solid biomass as a strong reason for implementing the electricity market reform delivery plan’s higher level of deployment, especially in the light of the risk to the UK energy supply caused by political instability elsewhere in the world?

Michael Fallon Portrait Michael Fallon
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The Government consider those risks very seriously. We are allocating over £1 billion of taxpayers’ money to support coal-to-biomass conversion at the Drax plant in my hon. Friend’s constituency, at Lynemouth in Northumberland, and at a dedicated biomass plant on Teesside. He will be aware, however, that the cost of that support has to be managed within the levy control framework if we are to keep our constituents’ bills affordable.

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Ed Davey Portrait Mr Davey
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That is a very important question. We are one of the world leaders in promoting international climate finance, and we very much support this fund. It has taken a while to get together to finalise the arrangements. Some real progress has been made in recent weeks, at long last. We hope that countries will start pledging to the fund at United Nations Secretary-General Ban Ki-moon’s summit in November or at the UN framework convention on climate change talks in Lima in December. It is also important that we have private climate finance. Only last week, the Minister of State, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), brought together many people to ensure that there is private money to help to get to the $100 billion target.

Nigel Adams Portrait Nigel Adams (Selby and Ainsty) (Con)
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T2. With one of the potential investors unfortunately walking away from negotiations over our last remaining deep mines, will the Minister update the House on what he is doing to assist in finding replacement investment for UK Coal that will give workers at Kellingley colliery in my constituency the chance of a more secure future?

Michael Fallon Portrait The Minister of State, Department of Energy and Climate Change (Michael Fallon)
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I understand the uncertainty that this is causing workers at Kellingley colliery in my hon. Friend’s constituency and at Thoresby colliery in the constituency of my hon. Friend the Member for Sherwood (Mr Spencer). We have been working with the company since January to help it to overcome the challenges that it faces. The exceptional offer we made of a Government loan of £10 million to the consortium that was leading the rescue remains on the table despite the withdrawal of Hargreaves, and we continue to work with UK Coal and its directors to explore what other sources of private investment might be available.