Oral Answers to Questions
Debate between Selaine Saxby and Andrew Bowie(3 months, 3 weeks ago)
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Selaine Saxby (North Devon) (Con)
Can my hon. Friend confirm that, given all the questions about carbon accounting, sustainability and value for taxpayers’ money, the Government will not be guaranteeing Drax billions more in subsidies?
Andrew Bowie
As my hon. Friend knows, we will shortly be consulting on potential support arrangements to help facilitate the transition of large-scale biomass generation to power bioenergy with carbon capture and storage. Power bioenergy with carbon capture and storage could deliver negative emissions to support our climate change targets and the UK’s energy security.
Floating Offshore Wind
Debate between Selaine Saxby and Andrew Bowie(5 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a pleasure to serve under you in the Chair this afternoon, Dame Angela. After quite an exciting political week, it is a pleasure to end with such an—on the whole—agreeable and positive debate in Westminster Hall. I think we all agree on the potential of floating offshore wind and the huge contribution it makes to the United Kingdom, our economy and our drive towards net zero, energy security and independence.
I congratulate my hon. Friend the Member for North Devon (Selaine Saxby)—she is a friend—on securing this important debate. She has been a vocal champion of floating offshore wind at all levels—from her constituency through to the wider Celtic sea region—in her role as chair of the all-party parliamentary group for the Celtic sea. She rightly highlighted the benefits that this new technology could bring to the United Kingdom as a whole.
Far be it from me to disagree with the shadow Minister, the hon. Member for Croydon Central (Sarah Jones), but the United Kingdom is actually one of the world leaders in floating offshore wind. The world’s first floating offshore wind farm was built in UK waters. Since then, we have built a strong base of new projects and development to grow our industry still further. Indeed, in the oil and gas industry, which has already been referenced by the hon. Member for Aberdeen North (Kirsty Blackman)— my constituency neighbour—and which surrounds our constituencies, there are opportunities for floating wind to play a crucial role in decarbonising North sea production, by accessing deeper waters and providing electricity to those platforms.
Our 80 MW of currently installed floating wind capacity builds on our world-leading status in fixed-bottom offshore wind deployment—not that anyone would know it, listening to the Labour party. We have over 14 GW of installed capacity—the most in Europe—with the first, second, third, fourth and fifth largest offshore wind farms in the world generating power right now. Contrary to the Labour party’s castigation of this Government’s record, we have gone from only 7% of renewable electricity on the grid in 2010—when Labour left office—to 48% in quarter 1 of last year. We have decarbonised faster than any other G7 nation, at the same time as growing the economy.
The opportunity for floating offshore wind is significant. The Global Wind Energy Council has said:
“The market is nascent, but could be huge: 80% of the world’s offshore wind resource potential lies in waters deeper than 60m.”
That is too deep for fixed-bottom wind. The UK’s Offshore Renewable Energy Catapult’s Floating Offshore Wind Centre of Excellence has estimated that floating offshore wind has
“the potential to deliver £43.6bn in UK gross value add…by 2050, creating more than 29,000 jobs in the process.”
Our 5 GW ambition recognises that and the potential for floating wind to play a key role in our energy mix as we move steadily towards net zero. We are committed to building on the UK’s position and to placing the UK at the forefront of the development of this exciting new sector. However, we know that 5 GW is a stretching ambition, and we are working hard to create the right environment for investment and to address barriers to deployment.
First, we recognise the crucial importance—raised today by every Member who contributed—of port infra- structure to floating offshore wind. That is why we launched the £160 million floating offshore wind manufacturing investment scheme—or FLOWMIS for short. That funding will help leverage the vital investment needed in port infrastructure to deploy floating offshore wind at large scale. FLOWMIS closed for applications on 27 August, and I can reassure Members that we are assessing all the bids we received.
Secondly, we recognise the importance of the right support mechanisms through the world-leading and envied contracts for difference scheme. The scheme is looked to worldwide as the model for how to support the deployment of renewables, and CfD auctions have so far awarded contracts totalling over 30 GW of new renewable capacity across all technologies, including around 20 GW of offshore wind. Last year’s allocation round, AR5, was a success story for many technologies, including marine energy and the first three geothermal projects.
However, we recognise the shortfall in fixed-bottom and floating offshore wind, and I acknowledge the concerns that my hon. Friend the Member for North Devon and others raised at the time and this afternoon. We reflected carefully on the results of AR5, and I trust that today’s announcement detailing the parameters for next year’s allocation round, AR6, demonstrates that we have listened and responded to concerns. The administrative strike price for floating offshore wind has increased from £116 to £176 per MWh—an increase of 52% in real terms from AR5—recognising the unprecedented upward pressure on project costs, which, as we have seen, have affected the industry worldwide. We hope today’s announcement will bring forward viable floating wind projects as we look to boost investment in the industry.
Thirdly, we recognise the importance of a long-term pipeline of projects to give investors the confidence that they need to take long-term decisions. The UK has the largest floating wind pipeline in the world, based on confirmed seabed exclusivity, with around 25 GW already agreed, including through the ScotWind leasing round referenced today and the INTOG process.
Selaine Saxby
Could my hon. Friend clarify something in today’s AR6 announcement? We all know that there were two projects ready to bid in AR5, and at this point there are two projects ready to bid. Now that the strike price seems to be acceptable to all concerned, is there any opportunity for us to accelerate the decision for these two projects and then effectively to have an AR7 for all the projects in the next pipeline, so that we can get these ones afloat?
Andrew Bowie
I understand very much why my hon. Friend wants that to be the case, but we must recognise that one reason for the success of renewables, including in this country, has been the predictable options we have had. Developers are already planning for AR6 in March next year, and bringing the round forward any further could jeopardise it, not amplify it, so we are reluctant to do that. However, I hope the confidence the industry will receive from today’s announcement means that AR6 will be a huge success. We all need it to be, and that is why we took that decision.
As my hon. Friend will know, the Crown Estate is also moving forward with its plans to launch leasing round 5, making available areas of seabed capable of supporting up to 4.5 GW of capacity in the Celtic sea. The Government fully support those plans, which represent the first opportunity for commercial-scale floating offshore wind projects in the region. We also recognise the importance of a long-term pipeline in the Celtic sea beyond leasing round 5. We will continue to work closely with the Crown Estate on that as we seek to realise the full potential and opportunities represented by floating offshore wind in the Celtic sea. The Crown Estate is due to make further announcements on its plans before the end of the year.
We recognise the importance of dialogue between industry and Government in driving progress. The floating offshore wind taskforce is co-chaired by industry and Government. Its first report, in March this year—“Industry Roadmap 2040”—has been highly informative in shaping our understanding of the specific demands on port infrastructure needed to support floating wind at scale. The taskforce is currently working on a vision to 2050, due for publication in quarter 2 next year, which will set out the potential prize that floating offshore wind could offer the UK.
We will continue to work closely with industry, through RenewableUK and the Offshore Wind Industry Council, to assess supply chain needs and opportunities for the UK and to develop an industrial growth plan—an IGP—to support the growth of sustainable supply chains.
Oral Answers to Questions
Debate between Selaine Saxby and Andrew Bowie(1 year, 2 months ago)
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Andrew Bowie
I am afraid the hon. Gentleman has not been listening to what we have been saying for the past hour. We are determined to ensure that we move towards net zero in a sensible and measured way, leading the world as we do so while ensuring food security across the country.
Selaine Saxby (North Devon) (Con)
Contracts for difference have been successful in driving down the cost of renewable energies. However, industry bodies and developers are warning that the draft strike prices for allocation round 5 are too low. Can my right hon. Friend commit to a review of strike prices to ensure that the allocation round is a success for renewable energy technologies such as floating offshore wind?
Oral Answers to Questions
Debate between Selaine Saxby and Andrew Bowie(1 year, 4 months ago)
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Selaine Saxby (North Devon) (Con)
The Parliamentary Under-Secretary of State for International Trade (Andrew Bowie)
Thank you, Mr Speaker, for allowing the House to take a moment this morning to show our resolve, and the country’s resolve, never to forget the horrors and barbarism committed on our continent within living memory. We will always remember the holocaust, and man’s inhumanity to man, and we resolve to work to ensure that the suffering of so many is never forgotten and never repeated.
In the past two years we have resolved nearly 400 trade barriers, from opening markets for UK pork in Mexico and Chile to UK poultry in Japan. The recent deals with Australia and New Zealand also provide various mechanisms to identify and address trade barriers. This year the UK achieved the first export of British lamb to the USA in more than 20 years, a market estimated by industry to be worth £37 million over the first five years.
Andrew Bowie
If my right hon. Friend were to invite me, I would be delighted to visit the Backyard Brewhouse in Brownhills. British food and drink are among the best in the world, renowned for their quality and provenance. DIT is delivering an incredibly successful programme of activity for our exports, matching our producers with international buyers. We are placing eight new dedicated agrifood attachés in growth markets around the world.
Selaine Saxby
What more is my hon. Friend hoping to deliver to ensure that our great British produce carries “Brand Britain,” through national and regional UK geographical indicators to an international stage in existing and future free trade arrangements?
Andrew Bowie
I thank my hon. Friend for what she does for the food producers of North Devon. We have fantastic British produce, with protected geographical indications, such as Welsh lamb, Scotch whisky and Stilton, which are promoted and recognised around the globe through the GREAT Britain & Northern Ireland campaign, and at home through our “Made in the UK, Sold to the World” marketing strategy. This supports small and medium-sized enterprises to understand and access the benefits of FTAs and wider export opportunities and future success stories from all parts of the UK. I would be delighted to meet her to discuss what more we can do to support exports from North Devon and, indeed, the rest of the UK.