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Parliamentary Debates (Hansard) Thursday Volume 613 14 July 2016 No. 26 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 14 July 2016 © Parliamentary Copyright House of Commons 2016 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 405 14 JULY 2016 406 Alan Brown (Kilmarnock and Loudoun) (SNP): The House of Commons truth is that the Ernst & Young renewable energy attractiveness index shows that the UK has fallen from Thursday 14 July 2016 the seventh most attractive country to invest in to the 13th. Following Brexit, that is only going to get worse, so what is the Minister doing to reverse that trend? The House met at half-past Nine o’clock Andrea Leadsom: According to Bloomberg New Energy Finance the UK has been the fourth highest investor in PRAYERS clean energy globally for the past five years. Over half the total investment in the EU in 2015 occurred in the [MR SPEAKER in the Chair] UK. We have a very proud record and we are set to exceed our own targets for generating renewable energy by 2020. That is a very proud achievement for this Oral Answers to Questions country. Mr Philip Hollobone (Kettering) (Con): Iceland has a fantastic football team, a free trade agreement of its ENERGY AND CLIMATE CHANGE own with China and is outside the EU. It is also the world’s leader in geothermal energy. Are we drawing on Iceland’s expertise to develop this industry in our own The Secretary of State was asked— country? Geothermal Energy Andrea Leadsom: If my hon. Friend is referring to the 1. Steve Double (St Austell and Newquay) (Con): taskforce for the interconnector with Iceland, let me say What assessment she has made of the potential contribution that I am a huge fan of that, and there will be a of deep geothermal as a source of renewable energy. statement shortly about the progress that he will be aware has been made between the leaders of the UK [905848] and Iceland. I seriously hope we will be able to make The Minister of State, Department of Energy and progress with all sorts of bilateral energy deals in the Climate Change (Andrea Leadsom): If you will allow future. me,Mr Speaker,may I take this opportunity to congratulate Energy Infrastructure: Use of British Steel my right hon. Friend the Member for Hastings and Rye (Amber Rudd), the new Home Secretary, on her 2. Tom Pursglove (Corby) (Con): What steps her appointment, and also of course our new Prime Minister, Department has taken to increase the use of British the former Home Secretary? I wish them both great steel in energy infrastructure projects. [905849] success. I also welcome the hon. Member for Brent North (Barry Gardiner) to his place; I think this is the The Minister of State, Department of Energy and first time we have had an exchange over the Dispatch Climate Change (Andrea Leadsom): Officials in my Box. I wish the hon. Members for Wigan (Lisa Nandy) Department regularly meet developers to make clear and for Southampton, Test (Dr Whitehead) very good the importance we place on sourcing UK content, luck in their futures, too; I have enjoyed our exchanges. including steel, in infrastructure projects. For example, Owing to our geology, deep geothermal power is EDF says it expects that a large proportion of the steel likely to make a small contribution to electricity supply. for Hinkley Point C sourced by its supply chain will However, Cornwall is one area where the technology come from UK companies. can work and I am pleased that this is part of the devolution deal for Cornwall. Deep geothermal heat Tom Pursglove: I am grateful to the Minister for that has greater potential and we are supporting its development answer. As she will know, the Corby steelworks plays a through the renewable heat incentive and through feasibility vital role in manufacturing steel tubes which can be studies funded by the heat network delivery unit. used for fracking purposes. Does she agree it is very important that, wherever possible, we use British steel, Steve Double: I thank the Minister for that response. not just because it supports the industry and the jobs it Deep geothermal has the great benefit of being a baseload provides, but because the quality and safety of the energy source that is not reliant on variable weather product is far superior to that of foreign competitors? conditions, and, as the Minister points out, Cornwall is one place where great potential for geothermal lies. As Andrea Leadsom: I completely agree with my hon. she is aware, a scheme is being developed at the Eden Friend. I have had a number of meetings with the project in my constituency. May I invite her to visit Department for Business, Innovation and Skills to discuss Cornwall to see for herself the huge potential that there exactly this point. In its 2014 report “Getting ready for is for geothermal development there? UK shale gas” Ernst & Young said there would be significant benefits for jobs and growth from a successful Andrea Leadsom: I am grateful to my hon. Friend; UK shale industry, including a projected need for over nothing would please me more than a nice holiday in £2 billion-worth of steel. Cornwall right now. I am very pleased to hear that the EGS Energy and Eden project development is progressing 15. [905864] Christina Rees (Neath) (Lab): The well and, as he knows, it has the potential to produce Sustainable Product Engineering Centre for Innovative power for about 4,000 homes and to make a very Functional Industrial Coatings—SPECIFIC—national important contribution to the local community. innovation centre in Neath Port Talbot relies on EU 407 Oral Answers 14 JULY 2016 Oral Answers 408 funding to use Tata British steel to develop buildings to develop a demand model that will provide a capability that are completely decarbonised. Such buildings lower and capacity picture for the UK against the demand. household and business energy bills and help the UK to Part of the aim is to identify the forward requirement achieve its carbon reduction targets. Will the Minister for the components, which will include steel. We are support SPECIFIC in developing its use of British steel working closely with new nuclear developers to create in its innovative projects, and replace any EU funds that that supply chain right across UK businesses. might be lost as a result of Brexit? Energy Market Competition Andrea Leadsom: My Department has been working 3. Oliver Colvile (Plymouth, Sutton and Devonport) closely with the Department for Business, Innovation (Con): What her policy is on the proposals of the and Skills to look at how we can help Port Talbot with Competition and Markets Authority on increasing its energy costs. We have already made announcements competition in the energy market. [905850] about how we are going to reduce the impact of carbon policies on the steelworks in Port Talbot, and we will The Minister of State, Department of Energy and continue to look at further ways of helping, including Climate Change (Andrea Leadsom): The Government considering how energy-intensive industries across the welcome the Competition and Markets Authority’s final board can reduce their electricity costs by changing the recommendations, which represent another step towards way in which they generate power. a competitive and effective energy market that works for all consumers, but it is key to understand that it is Jeremy Lefroy (Stafford) (Con): Does my hon. Friend also the responsibility of energy suppliers to take action agree that British steel can be used in energy infrastructure in response to the CMA’s recommendations, and we are projects not just in the UK but around the world? Last meeting representatives of all the big six suppliers to week on a visit to the Democratic Republic of the urge them to do that. Congo with the International Development Committee, we saw the way in which Britain is leading in helping to Oliver Colvile: I congratulate my hon. Friend on provide energy infrastructure in that country. answering all the questions this morning and wish her the very best of luck with anything that might happen Andrea Leadsom: My hon. Friend is exactly right. A later. Does she agree that it is only by having greater good example of my own efforts to improve the use of competition in the market that we can drive down UK steel has been to urge the Offshore Wind Industry prices, especially for those living in fuel poverty? Council to do more to promote UK content. The UK is one of the biggest deployers of offshore wind to date Andrea Leadsom: My hon. Friend is absolutely right. and we can certainly hope that, once we start building I invite any of my hon. Friends on the Front Bench to our export markets, British steel will form a part of jump up and answer any of these questions, should they those exports. wish to do so, but I am quite used to being the last person on the battlefield; I know my place. Margaret Ferrier (Rutherglen and Hamilton West) The Government have taken a great deal of action to (SNP): The Minister will be aware that the two Liberty boost competition and to make switching easier for all steel plants, including Clydebridge in my constituency, consumers, and we have absolutely recognised that will be heavily involved in the supply of turbine casings vulnerable consumers need additional help to engage for tidal lagoon projects and tubular steel structures for with the energy market.
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