House of Commons Welsh Affairs Committee
Energy in Wales: follow-up inquiry
First Report of Session 2007–08
Report, together with formal minutes, oral and written evidence
Ordered by The House of Commons to be printed 11 December 2007
HC 177 [Incorporating HC 221-i-ii, Session 2006-07] Published on 17 December 2007 by authority of the House of Commons London: The Stationery Office Limited £0.00
The Welsh Affairs Committee
The Welsh Affairs Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Office of the Secretary of State for Wales (including relations with the National Assembly for Wales).
Current membership Dr Hywel Francis MP (Labour, Aberavon) (Chairman) Mr Stephen Crabb MP (Conservative, Preseli Pembrokeshire) Mr David T.C. Davies MP (Conservative, Monmouth) Ms Nia Griffith MP (Labour, Llanelli) Mrs Siân C. James MP (Labour, Swansea East) Mr David Jones MP (Conservative, Clwyd West) Mr Martyn Jones MP (Labour, Clwyd South) Rt Hon Alun Michael MP (Labour, Cardiff South and Penarth) Mr Albert Owen MP (Labour, Ynys Môn) Mr Mark Williams MP (Liberal Democrat, Ceredigion) Mr Hywel Williams MP (Plaid Cymru, Caernarfon)
Jessica Morden MP was a Member of the Committee during the inquiry.
Powers The committee is one of the Departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk.
Publications The reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the internet at www.parliament.uk/parliamentary_committees/welsh_affairs_committee.cfm. A list of reports of the Committee in the present Parliament is at the back of this volume.
Committee staff The current staff of the Committee is Nick Wright (Clerk), Llinos Madeley (Committee Specialist), Christine Randall (Committee Assistant), Annabel Goddard (Secretary), Jim Lawford (Chief Office Clerk) and Rebecca Jones (Media Officer).
Contacts All correspondence should be addressed to the Clerk of the Welsh Affairs Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 6189 and the Committee’s email address is [email protected].
Energy in Wales: follow-up inquiry 1
Contents
Report Page
Introduction 3
1 Coal production in Wales 4 The world price for coal 4 The market for coal in Wales 4 Security of supply and the importation of coal 5 The “generation gap” 6 The economic importance and environmental impact of open cast mining 7 The preservation of areas of ancient woodland 10 The extraction of coal bed methane 11 The Mines Rescue Service 11 The collection of below-national level data 12
2 Alternative technologies and microgeneration 13 Microgeneration strategies 13 The Wales Institute for Sustainable Education (WISE) project 14
3 The Severn Barrage project 16
4 Conclusion 20
Conclusions and recommendations 21
Formal Minutes 23
Witnesses 24
List of written evidence 24
List of Reports from the Committee during the current Parliament 25
Energy in Wales: follow-up inquiry 3
Introduction
1. The Report of this Committee’s major inquiry of Session 2005-06, Energy in Wales, was published on 20 July 2006.1 Although open cast mining was not considered as part of that Report, we noted that “should open cast mining in Wales be extended further, an in-depth assessment of the environmental impact of that process would be worthwhile”.2 Following representations by the Opencast Coal Committee of Wales as well as by groups opposed to such development, we decided to conduct a short follow-up inquiry looking at the future for coal production in Wales and its economic, social and environmental impact. As part of this follow-up inquiry we also heard evidence on the development of sustainable technologies and on measures to encourage microgeneration.
2. We thank all those who submitted written and gave oral evidence. In addition, in May the Committee invited a presentation on the case for a reappraisal of the proposed Severn Barrage project. We thank Roger Hull and colleagues representing the Severn Tidal Power Group for their presentation.
1 3rd Report from the Welsh Affairs Committee, Energy in Wales, HC 876-I of Session 2005-06 2 ibid, para 71
4 Energy in Wales: follow-up Inquiry
1 Coal production in Wales
The world price for coal 3. After many years in which coal mining in Wales has been in steady decline, the rise in the world price for coal has meant that coal mining operators are taking commercial decisions which clearly indicate their belief that coal has a viable future. As the Parliamentary Under-Secretary of State for Energy told us in evidence:
… as the price of coal goes up, increasingly businesses will look to areas of former pits to see whether they are viable in terms of reopening them ... We are at that point where the price has risen to such a point which makes some of these developments economic, whereas they previously were not.3
4. The Minister continued: “overall the prospect for coal in Wales does look good”. 4 The mine operators who gave evidence to us also saw a positive future for coal in Wales. The Chairman of Unity Power Plc, Mr Gerwyn Llewellyn Williams, told us that “When we talk about coal in Wales I think we totally underestimate the resource there is ... There is a good future for deep mining in the reserves we have already quantified”.5 Mr Poyner, Director of Miller Mining, told us “We have always believed that there is a future for coal in Wales. Whether it is a good future depends on continuity of access to the coal reserves and the market conditions”.6
5. We share this positive assessment, and agree with the conclusion of the Government’s Energy Review that:
... it is right to make the best use of UK energy reserves, including coal reserves, where it is economically viable and environmentally acceptable to do so.7
The market for coal in Wales 6. The domestic market for coal in Wales is shrinking, with “limited scope for further development”.8 The remarks in this Report are therefore confined to the production of coal in Wales intended for industrial use, primarily at Wales’s two coal-fired power stations, Aberthaw and Uskmouth. The potential for introducing coal into coke-making and blast furnace injection at the steelworks at Port Talbot, which was under discussion at that time, was also referred to by representatives of the mining companies.9 The Chairman of Unity Power, Mr Gerwyn Llewellyn Williams, told the Committee that he also believed there to
3 Q 21 4 Q 2 5 Q 122 6 ibid 7 The Energy Challenge, Energy Review, DTI, July 2006, CM 6887, para 4.23 8 Q 12 9 Q 128
Energy in Wales: follow-up inquiry 5
be a role for smaller, modern coal-fired generating stations to be built, “strategically placed throughout South Wales”.10
7. RWEnpower has recently opted into the Large Combustion Plants Directive and is retrofitting flue gas desulphurisation to meet the deadline of implementation of the Directive in January 2008.11 Although Aberthaw Power Station was specifically built to burn the type of coal with the characteristics that can only be found in the South Wales coalfield – Welsh dry steam coal – because Welsh-mined coal has a higher sulphur content than that of imported coal, the advent of the Directive requires Aberthaw to use a blend of Welsh and imported coal.12 The lower sulphur content of the imported coal helps generators to meet their emissions targets.13 However, the fitting of flue gas desulphurisation equipment can overcome the comparative disadvantage of the higher sulphur content of Welsh coal, although using Welsh coal increased the cost of applying this technology.14
8. Seventy per cent of Wales’s annual coal consumption is through the two coal-fired power stations at Aberthaw and Uskmouth.15 RWEnpower, which owns Aberthaw, told us that 40 per cent of Aberthaw’s coal burn is made up of supplies from Tower, Celtic Energy and Energybuild, with the remaining 60 per cent imported from Russia, Australia and South Africa.16 Clare Harding of the DTI’s Energy Technologies Unit told us:
... clearly with demand for the generating sector exceeding the total domestic production in Wales, there is a shortfall [from domestic production] and it has to be met by a mix [with imports].17
Security of supply and the importation of coal 9. There are clear economic and employment-related advantages for Wales in Aberthaw and Uskmouth using indigenous supplies of coal. It is also vital for the power stations to have a guaranteed security of supply, something Gareth Jones of the TGWU believed was best achieved by the use of Welsh-mined coal.18
10. However, the view of the DTI was that security of supply did not necessarily require sourcing a larger percentage of coal from indigenous stock. According to Lord Truscott:
... unfortunately in some circumstances UK coal has not been as reliable and as flexible and as dependable as imported coal.19
10 Q 123 11 Ev 51 12 Qs 125, 127; Ev 49 13 Q 5 14 Q 5 15 Q 4 16 Ev 93
17 Q 5 18 Q 94 19 Q 5
6 Energy in Wales: follow-up Inquiry
11. On the environmental cost of importing coal, Clare Harding of the DTI told us:
... the actual environmental cost of shipping is not as high as you might envisage and ... the carbon cost is not significant.20
However, the environmental cost of using imported coal is not simply a calculation of its transport; as Clare Harding also mentioned, the environmental impact of its extraction – possibly by a less well-regulated process – should also be considered:
If you rely increasingly on imports ... coal may be being produced overseas and not subject to the same controls that are applied in the UK, so you may be in effect exporting the impacts that local communities are objecting to.21
12. There may also be health and safety considerations. As Nigel Hughes, Chairman of the Opencast Coal Committee of Wales, told us:
The difference between our extraction of coal and foreign extraction of coal is that ours is priced very, very heavily and the simple reason is the health and safety aspect. We have an excellent health and safety record and that comes with a price.22
13. For reasons of reliability and flexibility it is sensible to ensure a diversity in the sources of supply of coal to the generating sector. Welsh-mined coal will continue to be an important component of this mix.
The “generation gap” 14. James Poyner, Director of Miller Mining, described the projected “generation gap” whereby “between now and 2015 approximately 22 GW of power generation is going to come off-stream, and ... that has got to be replaced with something”.23 In a supplementary note on this point, Mr Poyner stated:
I now wish to add that that generation gap will increase to 29 GW if the existing AGR stations do not get a life extension.24
15. The directors of the mining companies who gave evidence to us were cautious in their estimates of the extent to which this “generation gap” could be filled by the use of alternative technologies such as wind power.25 Mr Poyner’s supplementary evidence stated that “the gap is far too large for renewables” and that “wind is portrayed by some commentators to contribute much more than it realistically does and in fact can”.26
20 Q 7 21 ibid 22 Q 100 23 Q 133 24 Advanced gas-cooled reactor (AGR); Ev 63 25 Q 133 26 Ev 63
Energy in Wales: follow-up inquiry 7
16. When asked about the future role for coal as part of the energy portfolio, Mr Poyner told us “I do not think it should change very much from what it is at the present day ... between 20 and 30 per cent of the total contribution”.27 Mr Poyner’s written memorandum stated:
Whether we like it or not, the UK relies on coal for a third of its electricity, in fact over the winter months it relies on coal for half its electricity. This reliance will not change in the short to medium term.28
Unless and until alternatives are in place coal will continue to be used in the UK otherwise the lights will go out and our economy will crash.29
17. We are not convinced that alternative technologies will be able to produce sufficient electricity to fill an anticipated power generation gap of around 22 GW by 2015. Coal- fired power generation will continue to play a valuable and significant leading role. Consequently, UK and Welsh Assembly governments should have a more positive policy approach, which recognises the continued critical importance of Welsh coal in filling the power generation gap at present and into the future. This is not, however, a reason to discourage investment in alternative and renewable technologies.
The economic importance and environmental impact of open cast mining 18. Coal has an environmental impact, although measures to reduce carbon emissions are more a matter for the electricity generators than for coal producers.30 As Mr Richard Nugent, Director of Energybuild, said, “... we cannot mine clean coal. The clean coal is the way in which it is burnt”.31 We welcome the Government’s response to our earlier Report, recognising that:
We agree that clean coal technology, and in particular carbon capture and storage, can contribute to the UK’s security of energy supply enabling it to use its coal resources whilst avoiding coal’s impact on the environment.32
19. The major part of the coal produced in Wales at present is produced by open cast methods and, for that reason alone, it is economically very significant. Furthermore, given required consents, it is estimated that open cast output in Wales could be raised to 2 million tonnes a year by 2014 (from 1,235,485 tonnes in 2005), equivalent to 50 per cent of current coal demand in Wales.33 However, the future of open cast mining is controversial.34
27 Q 133 28 Ev 58, para 6.5 29 ibid, para 6.6 30 Q 139 31 Qs 123, 139 32 5th Special Report of the Welsh Affairs Committee, Energy in Wales: Government Response to the Committee’s 3rd Report of Session 2005-06, HC 1656, p 7 33 UK indigenous coal production and manpower, The Coal Authority; Q 2
8 Energy in Wales: follow-up Inquiry
Open cast mining has a particular environmental impact in terms of the despoilation of the landscape and in terms of noise, dust and its impact on the lives of those living close to extraction sites.
20. As planning regulations and the granting of mining licences are matters devolved to the National Assembly for Wales, we make no comment on this other than to note the division of views which were expressed to us. The directors of the mining companies were clearly dissatisfied at the complexity of the planning application system, which resulted in considerable and costly delay for them.35 In its memorandum to the Committee, Celtic Energy stated that:
Planning restrictions often form the greatest hurdle to the coal industry. ... Delays within the current planning system can mean that the time can run into years.36
For the TGWU, the difficulty in obtaining planning permission for opencast coal production was “the greatest impediment”, and “illogical, discriminatory and absurd”.37
21. Those opposed to the extension of open cast production, however, took a very different view. We heard evidence from the campaigning group, Protecting and Conserving Together (PACT) and from the Woodland Trust – both groups opposed to an extension of open cast mining at Margam, Port Talbot.
22. One of the witnesses from PACT referred to open cast development as the “exploitation of countryside features, amenities, physical access and ... our wellbeing”, which also affected leisure and tourism in their area.38 PACT’s witnesses maintained that no restoration of the open cast site in their area had been undertaken in 12 years, that the threshold for dust levels was “far too high”, and that the protection offered by currently designated buffer zones was inadequate.39
23. In its memorandum to the Committee the Department of Trade and Industry told us:
... it should be recognised that surface mine projects are transient in nature – even major sites expect to have areas in restoration within three years of opening – and ... recent regulations on dust and noise suppression, and traffic management requirements which can be a condition of consent, mean that the potential impact of such developments on local communities can be much better managed than was the case in previous decades.40
Celtic Energy, in its written evidence, agreed:
34 Q 2 35 Q 141 36 Ev 73, paras 7.1 – 7.2 37 Ev 50 38 Q 192 39 Qs 195, 198 40 Ev 41, para 2.5
Energy in Wales: follow-up inquiry 9
Day to day site operations are undertaken to ensure that dust and noise emissions are kept to a minimum in compliance with statutory controls41
On the restoration of open cast sites, we heard from Celtic Energy that:
Once coal extraction operations have been completed, sites are restored in accordance with agreed schemes with a strong commitment to protection and enhancement of scientific and ecological value of the land42
... not all environmental impacts are negative. There are many examples of improvements in landscape and amenity as a result of open cast coal workings, and new habitats can be created so that they are every bit as good, if not better than, those lost temporarily.43
24. Representatives of the Department of Trade and Industry referred to the concern of open cast mine operators in South Wales that:
... the introduction of mandatory “buffer zones” could sterilise a high proportion of the remaining resource, which probably represents around 50 years of supply at output levels of 1.2 – 1.4 million tonnes per year.44
25. Gareth Jones of the TGWU expressed his Union’s case against set buffer zones, preferring each application to be considered on its merits.45 In its memorandum, the TGWU noted:
... extending buffer zones from the 200 metres that apply to some other minerals will sterilise large areas of reserves and could make operations unviable.
The Open Cast Coal Committee agreed:
There is no doubt that substantial recoverable coal resources are available in the UK. ... Whilst those resources will not disappear, some may well become sterilised forever.46
And Miller Argent stated in its memorandum to the Committee:
In effect if a 500 metre buffer zone was introduced in Wales it would close the Welsh open cast industry down overnight.47
26. We believe that there is a good future for the coal mining industry in Wales, given the remaining large reserves of coal and the supply of highly skilled labour. We do not believe in the application of one, set distance for all “buffer zones” between mining sites and housing which would apply to all developments, as each case should be considered
41 Ev 75, para 9.1 42 Ev 75 43 ibid, para 10.2 44 Ev 41, para 2.6 45 Q 106 46 Ev 48, 74 (para 7.5) 47 Ev 66
10 Energy in Wales: follow-up Inquiry
on its merits. However, mine owners and operators should take care to engage with local communities and local authorities and be sensitive to their reasonable health and environmental concerns.
The preservation of areas of ancient woodland 27. The Woodland Trust supports PACT in its opposition to an extension of the Margam site, as it would result in the loss of 4.5 hectares of ancient woodland, Coed Hafod Heulog, on the banks of the River Kenfig.48 The Trust defines ancient woodland as “land that has been wooded since 1600”, but also told us that “most ancient woodland in Wales has been there since shortly after the Ice Age”.49 The Trust did not agree that ancient woodland could be transplanted or re-created. Mr Rory Francis, Public Affairs and Press Officer for the Trust, told us:
I do not think that anyone would claim that they could restore or ... trans-locate an ancient woodland.
In its memorandum to the Committee the Woodland Trust wrote:
Ancient woods are our richest, most important sites for a vast range of insects, birds, animals, flowers and trees. They are one of the glories of our natural heritage; they are places of inordinate beauty, reservoirs of evidence for environmental change, archaeology and economic history. ... we simply cannot afford to lose them, and ... new planting can in no way compensate for their loss.50
28. In its memorandum the Woodland Trust noted that it had identified 35 ancient woodlands across Wales known to have come under threat recently from development. Ten of these were under threat from road schemes, seven from public utility services, five from minerals, four from housing development and nine others from such things as caravan parks, golf courses and an airport.51
29. The Director of Miller Mining told us that open cast mining “may temporarily change the surface features”.52 The Department of Trade and Industry told us:
... restoration generally starts within three years of the void moving forward in a site. Actual restoration of the site will take longer, depending on the size of the site and the nature of the restoration work to be done.53
30. We are not convinced by the Department of Trade and Industry’s description of open cast projects as “transient”.54 We believe that in cases where areas of ancient woodland may be affected, there is a very real possibility that areas of significant
48 Ev 92, para 2.6 49 ibid, 3.1; Q 204 50 Ev 92, para 3.4 51 ibid, para 4.1 52 Q 180; Ev 41, para 2.5 53 Q 48 54 Ev 41, para 2.5
Energy in Wales: follow-up inquiry 11
environmental importance - which cannot be re-created or transplanted - will be lost forever.
The extraction of coal bed methane 31. We were interested to hear from Mr Williams, Chairman of Unity Power, that his company is working on a programme together with an Australian company to extract methane from coal reserves and by blending it with hydrogen to produce hythane, a cheaper and less polluting form of road vehicle fuel. Mr Williams told us:
… hythane is a very, very competitive, much cheaper road vehicle fuel, and a 5 – 6 per cent blend of hydrogen with methane will actually reduce emissions by something like 30 per cent.55
32. Mr Williams’ assessment is that South Wales is “top of the league for potential coal bed methane production. There is huge scope.”.56 Given the potential benefits of this resource, we recommend that there is a role for Government in working jointly with industry in developing the potential for commercial extraction of coal bed methane, including joint funding for exploration, to establish the likely extent of this resource.
The Mines Rescue Service 33. We were reminded in evidence of the valuable work undertaken by the Mines Rescue Service, established over 100 years ago to effect the rescue and escape of mineworkers from underground. The Service has since diversified and now uses its expertise to support a range of health and safety related products, training and services.57 Although it earns a large part of its income from such diversification, the Service is funded by mine owners on the basis of a fee per tonne extracted and, as the mining industry has contracted, so has the Service’s income.58 In a House of Commons debate in March 2007, it was pointed out that:
In the most recent financial year, the income from non-deep coal mine reserve cover and training was about £4.5 million – three times as much as its deep coal mine rescue income. However, that still left a shortfall of about £150,000 and next year ... the shortfall will increase to £250,000.59
We agree with the Director of Miller Mining, Mr Poyner, when he told us that:
... the Mines Rescue Service should be treated in exactly the same way as any other emergency service ... If there was a terrorist attack anywhere and there were people trapped it is highly likely that the Mines Rescue Service would be called out.60
55 Q 148 56 Q 188 57 www.minesrescue.com 58 HC Deb, 27 March 2007, col. 388WH (Willie Rennie MP, Dunfermline & Fife West) 59 ibid, col. 390WH (Willie Rennie MP, Dunfermline & Fife West) 60 Q 188
12 Energy in Wales: follow-up Inquiry
This view was strongly endorsed by Mr Rhydian Davies, Director of Energybuild, who said that “if that is not looked after we have a serious problem”.61
34. We recommend that the Department for Business, Enterprise and Regulatory Reform work together with the Department for Communities and Local Government and the Health and Safety Executive [Department for Work and Pensions] to explore the future funding arrangements for the Mines Rescue Service so as to protect the extremely valuable work it undertakes and to avoid the disincentive to the coal mining industry of the imposition of a levy on the extraction of coal.
The collection of below-national level data 35. In its memorandum to the Committee the DTI told us that below-national-level data for the production and use of coal were not readily available, and that “some of the Welsh data are estimates based on UK totals”.62 In evidence, Lord Truscott told us:
... we are committed to collecting and making available data on energy production, emissions and so on at below-national level to enable local authorities, devolved administrations and regional bodies to monitor and implement energy strategies to reduce CO2 emissions. ... We are looking at trying to do more both at a sub-national level and at local authority level and ... we are developing the production of statistics on these matters.63
36. We believe that the collection of below-national-level data is essential in order to underpin the development of policy in this area, and encourage the Department for Business, Enterprise and Regulatory Reform to continue to pursue this aim.
61 Q 188 62 Ev 40, para 1.7 63 Q 15
Energy in Wales: follow-up inquiry 13
2 Alternative technologies and microgeneration
Microgeneration strategies 37. Microgeneration is the term given to the small scale production of heat or electricity from a low carbon source and includes such technologies as wind power, solar power, biomass and small scale fuel cells.64 In March 2006 the UK Government published its microgeneration strategy, which identified a range of constraints affecting the widescale takeup of microgeneration technologies.65 Inhibiting factors included cost, information and technical constraints, which the Department of Trade and Industry proposed to counter by using its programme of capital grants to ensure that electricity generated by microgeneration technologies is properly rewarded by the electricity supply companies, and by working together with the Welsh Assembly Government and local authorities.66 The Welsh Assembly Government’s own microgeneration action plan was launched on 20 March 2007.67
38. Our witnesses from the Centre for Alternative Technology (CAT) expressed some doubt as to whether retrofitting existing buildings with microgeneration facilities was effective. CAT’s Head of Research, Mr Peter Harper, said that in his opinion it was “probably a mistake” and “not something which should occupy too much of our minds at the moment”.68 At household level, Mr Harper recommended that the focus should be on energy saving and energy efficiency rather than microgeneration – to encourage households to move from being “energy obese” to being “carbon lean”.69 Rather, Mr Harper recommended that:
For old, existing buildings we should concentrate on bringing them all up to the present Building Regulations standard. ... When it comes to new houses, we can design them properly and introduce 10 per cent, or much more, on-site generation”70
Mr Harper emphasised that microgeneration was undertaken far more effectively at community level, with community scale wind farms and wind turbines, solar technologies, community combined heat and power systems, and by using local biomass resources.71
39. CAT told us that, at household level, the most efficient form of microgeneration for electricity generation was photovoltaics – solar panels – , “even though on paper it looks
64 Energy Act 2004, Section 82; Our Energy Challenge – Power from the people, DTI Microgeneration Strategy, March 2006, p 4 65 Our Energy Challenge – Power from the people, DTI Microgeneration Strategy, March 2006 66 Q 35 67 Microgeneration Action Plan for Wales, Welsh Assembly Government, March 2007 68 Q 67 69 Ev 44, 46 70 Q 67 71 Qs 67, 85
14 Energy in Wales: follow-up Inquiry
much more expensive”.72 When asked whether there was a role for Government in developing the demand for the domestic use of photovoltaics, Mr James Cass, CAT’s Funding and Development Co-ordinator, told us:
... the most important thing that Government could do is ... stimulate the market and bring prices down.73
40. A further difficulty for householders in installing solar panels on their roofs is the shortage of skilled professional technicians qualified to install them. One of CAT’s adult education programmes - a solar water heating course - essentially teaches roofing skills to plumbers and, despite being run five or six times a year, it is currently oversubscribed.
41. We agree with CAT’s assessment that the current price of photovoltaic panels is likely to be a disincentive to their widespread adoption on a domestic scale, and we would support action by both the UK Government and by the Welsh Assembly Government which would stimulate the market – for example, via the planning process – and so lead to a reduction in the price of photovoltaic panels for domestic scale electricity generation. We note the shortage of skilled professionals qualified to install solar panels on roofs, which is likely to inhibit the takeup of this technology and which could be addressed by governments as an aspect of the skills agenda.
The Wales Institute for Sustainable Education (WISE) project 42. We took evidence on microgeneration and alternative technologies from representatives of the Centre for Alternative Technology (CAT) at Machynlleth, which we visited as part of our earlier inquiry into energy in Wales. Our subsequent Report praised the work undertaken by CAT but expressed disappointment at the level of financial support provided by UK Government to its WISE project (Wales Institute for Sustainable Education), which is to be part of the Centre.74 Due to open in summer 2008, WISE promises “a state-of-the-art environmental education centre ... to educate a wide range of participants in the principles of sustainable development”.75 We understand that, of the approximately £5.4 million raised by CAT so far in support of the WISE project, only £42,000 has been provided by UK Government – far less that that provided by the Welsh Assembly Government, European Union funding, lottery grants, and donations by individuals, trusts and corporations. 76
43. We continue to find the level of funding provided by UK Government in support of the Centre for Alternative Technology’s WISE (Wales Institute for Sustainable Education) project disappointing, particularly given the Government’s aims as set out in its microgeneration strategy.77 We urge the Department for Business, Enterprise and
72 Q 83 73 Q 80 74 3rd Report of the Welsh Affairs Committee, Energy in Wales, HC 876-I Session 2005-06 75 http://wise.cat.org.uk/wise 76 ibid 77 Our Energy Challenge – Power from the people, DTI Microgeneration Strategy, March 2006
Energy in Wales: follow-up inquiry 15
Regulatory Reform to reconsider the level of financial support it provides for this important project.
16 Energy in Wales: follow-up Inquiry
3 The Severn Barrage project
44. The river Severn has a tidal range of 14 metres, the second highest tidal range in the world.78 The potential for harnessing this power by way of a barrage across the River Severn has long been recognised, the idea having first been proposed in 1849 The first major study of the likely environmental impact of a Severn barrage was carried out in 1981, with further research in 1989.79 The case for a re-appraisal of the Severn barrage proposals has been put by the Severn Tidal Power Group, a consortium of construction firms representing McAlpine, Taylor Woodrow, Balfour Beatty and Alstom. The Group’s proposal is for a 10 mile barrage running from Larnock Point near Cardiff to Brean Down near Weston-super-Mare, which would work by impounding the tide and then releasing the water through 216 turbines to generate electricity.80 In May we invited representatives of the Group to give a presentation to the Committee.
45. The Severn Tidal Power Group estimates that a barrage could provide 5 per cent of UK electricity consumption by 2020, which would obviously be a significant contribution to the Government’s target of increasing to 20 per cent the percentage of electricity generated from renewable resources.81 This was the Government’s own estimate in its 2006 Energy Review.82 In addition, the energy produced would be carbon-free, resulting in significant savings in CO2 emissions. The Minister for Science and Innovation said that “A Severn barrage would be one of the largest civil engineering projects in the world, and by far the largest single renewable energy generation scheme in the UK”.83
46. However the Government’s 2006 Energy Review also estimated that the construction of a Severn barrage would cost in the region of £14 billion, and noted that tidal barrages “generally are not competitive with other forms of low carbon generation”.84 The Review noted:
It is clear that while attractive in terms of energy generation and associated benefits, plans for a Severn Barrage would raise strong environmental concerns in view of the designations that apply to the Severn Estuary.85
47. By the time the 2006 Energy Review was published, the Government had already invited the Sustainability Development Commission (SDC) to conduct a major study into the potential for tidal power in the UK, including the Severn Estuary. The following year, the 2007 Energy Review contained a change of emphasis:
78 Note: the Bay of Fundy in Canada has the highest range 79 Bondi study EP 46; Tripartite study EP 57 80 Severn Tidal Power Group, presentation to the Committee, 22 May 2007 81 Meeting the energy challenge, Energy White Paper, DTI, Cm 7124, May 2007, p 144 82 The Energy Challenge, Energy Review, DTI, July 2006, CM 6887, Box 5.2, p 100 83 Hansard, 24 April 2007, col. 268WH 84 Note: STPG figure is £15 billion (at 2006 prices); The Energy Challenge, Energy Review, DTI, July 2006, CM 6887, Box 5.2, p 100. It is not clear whether these figures include the full cost of providing a compensatory habitat. 85 The Energy Challenge, Energy Review, DTI, July 2006, CM 6887, Box 5.2, p 100
Energy in Wales: follow-up inquiry 17
Tidal power represents a significant untapped resource. The geography of the UK means that we are particularly well positioned to harness the power of the tides to generate cleaner energy. ... Tidal power could make a significant contribution towards meeting the twin challenges of climate change and security of supply.86
48. The SDC’s report Tidal Power in the UK was published in October 2007, and contains a detailed and thorough analysis of the proposals for a Severn barrage.87 The report acknowledges that “the benefits of a barrage ... are extremely substantial from a climate change or energy security perspective”.88 However, it continues:
The reduction in carbon dioxide emissions from a Severn barrage depends heavily on the assumptions made on the carbon intensity of the displaced electricity.89
In other words, the better we get at producing electricity without CO2 emissions (for example through nuclear power), the less attractive the cost:benefit ratio for a barrage becomes.
49. The construction of a barrage across the Severn would also lead to the loss of a protected mudflat habitat which is an important area for migrating birdlife.90 As the SDC’s report states, the ‘hypertidal’ nature of the estuary – precisely what makes it attractive for potential power development, “is also responsible for creating a series of unique conditions and habitats, such as extensive mud flats and mobile sand banks. Extracting energy from this dynamic regime in the form of a tidal barrage would fundamentally change the nature of the Severn Estuary”.91
50. It is clear that a barrage would significantly alter the nature of the landscape and change the unique habitat of the Severn estuary, an environmentally sensitive area protected by numerous national and international designations.92 The SDC report notes:
The Severn barrage proposals are located in an estuary that has high levels of environmental protection under national and international legislation, and its construction would involve large-scale and irreversible change to the hypertidal estuary system.93
The SDC’s report concluded that “any proposal for a Severn barrage must fully comply with the Directives”.94
51. Those in favour of the proposed barrage argue that national and EU environment legislation imposes an obligation for this to be compensated for, as the site is designated a
86 Meeting the energy challenge, Energy White Paper, DTI, Cm 7124, May 2007, Box 5.3.1, p 144 87 Turning the Tide: Tidal power in the UK, Sustainable Development Commisson, 1 October 2007 88 ibid, 5.3.4 p 144 89 ibid, 4.4.2 p 83 90 Source: RSPB, quoted in Hansard debate, 24 April 2007, col .265WH 91 Turning the Tide: Tidal power in the UK, Sustainable Development Commisson, 4.5.2 p 85 92 ibid, 4.6.2 p 89 93 ibid, 5.3.3 p 142 94 ibid, 5.3.3 p 143 (“the Directives” refers to EU environmental legislation)
18 Energy in Wales: follow-up Inquiry
special protection area under the EU Habitats Directive. Overall, they argued that bird and marine life would actually increase as a result of the barrage because of the consequent reduction in tidal range and reduced currents. On this point, the SDC’s report notes:
The scale of habitat creation required to provide adequate compensation for a Severn barrage project would be unprecedented within the UK. Nevertheless, the SDC considers it technically, legally and financially possible ... given sufficient political will. ... It is clear that the compensation requirement would be the biggest test that any barrage proposal would have to face and may even determine the overall viability of the project.95
52. Those in favour of a barrage also believe that it would lead to a large reduction in the suspended sediment in the water, allowing greater penetration of sunlight and a more stable sea bed with more plant and animal life. The SDC cautiously acknowledged the effect a barrage might have on the sediment level in the Estuary, noting that:
…a barrage might result in deposition of up to 85 per cent of the mobile sediment load, which in turn may allow sufficient light to penetrate the water column to create a viable photic zone.96
53. Protection against flooding from high tides and storm surges was given as a further benefit by those in favour of the project, as 140 miles of South Wales, Somerset and Gloucestershire coastline would be enclosed by the scheme as proposed. Again, however, the extent of the protection which a barrage would afford is disputed by those opposed to the scheme, including Friends of the Earth Cymru.97
54. There is a further economic case to be made in favour of a barrage, in that the project proposed by the Severn Tidal Power Group would create an estimated 35,000 jobs at the peak of construction and lead to between 10,000 and 40,000 permanent jobs in the region.98 Were this to be combined with improvements to the transport infrastructure by the provision of additional road and rail links, this would obviously represent a significant boost to the economy of the South Wales region.
55. Shortly before the publication of the SDC’s report, the Secretary of State for Business, Enterprise and Regulatory Reform announced that Government was to conduct a feasibility study for a tidal power scheme in the river Severn, including a barrage. The study will examine the environmental impact a barrage would have and how these could be mitigated.99 It will also assess the social and economic impact of a barrage, including the impact it would have on the infrastructure of the surrounding regions. The study will also consider how such a project might be financed, and assess the technology and engineering requirements.
95 Turning the Tide: Tidal power in the UK, Sustainable Development Commisson, 5.3.3. p 144 96 ibid, 4.5.4 p 88 97 The Severn Barrage, report by Friends of the Earth Cymru, September 2007, 2.3 p 23 98 Source: Severn Tidal Power Group 99 Speech by Rt. Hon. John Hutton MP, Secetary of State for Business, Enterprise and Regulatory Reform, Labour Party Conference, 25 September 2007
Energy in Wales: follow-up inquiry 19
56. We believe that the Government is right to conduct further detailed study of the Severn barrage proposal. Such a scheme has the potential to make a significant contribution to the Government’s targets for increasing the percentage of electricity generated by renewables and for reducing CO2 emissions. However, given the scale of the project and the extent to which it would impact on this environmentally sensitive and highly protected area it is essential that the most careful assessment is undertaken. This should include consideration of the adequacy and financing of any habitat compensation which is required, which would be on an unprecedented scale. A thorough assessment of the possible financing options should be included, as well as the impact which a barrage across the Severn would have on the infrastructure and economies of the regions concerned.
20 Energy in Wales: follow-up Inquiry
4 Conclusion
57. In reiterating the conclusions of our earlier Report of emphasising the importance of climate change and security of supply, we urge the UK and Welsh Assembly governments to develop a more balanced energy mix which fully recognises the continuing importance of Welsh coal to the British electricity supply industry. 100
58. The Committee reaffirms its earlier conclusions that a long term future for Welsh coal can be guaranteed, if carbon capture technology is fully exploited and a new generation of skilled Welsh miners can be assured.
59. The Committee further reaffirms its earlier support for renewables and sustainable energy technologies and urges policy approaches which are more comprehensive and diverse than the apparent over-emphasis on offshore and onshore wind power generation.101
100 3rd Report of the Welsh Affairs Committee, Energy in Wales (HC 876-I, Session 2005-06) 101 ibid
Energy in Wales: follow-up inquiry 21
Conclusions and recommendations
1. For reasons of reliability and flexibility it is sensible to ensure a diversity in the sources of supply of coal to the generating sector. Welsh-mined coal will continue to be an important component of this mix. (Paragraph 13)
2. We are not convinced that alternative technologies will be able to produce sufficient electricity to fill an anticipated power generation gap of around 22 GW by 2015. Coal-fired power generation will continue to play a valuable and significant leading role. Consequently, UK and Welsh Assembly governments should have a more positive policy approach, which recognises the continued critical importance of Welsh coal in filling the power generation gap at present and into the future. This is not, however, a reason to discourage investment in alternative and renewable technologies. (Paragraph 17)
3. We believe that there is a good future for the coal mining industry in Wales, given the remaining large reserves of coal and the supply of highly skilled labour. We do not believe in the application of one, set distance for all “buffer zones” between mining sites and housing which would apply to all developments, as each case should be considered on its merits. However, mine owners and operators should take care to engage with local communities and local authorities and be sensitive to their reasonable health and environmental concerns. (Paragraph 26)
4. We are not convinced by the Department of Trade and Industry’s description of open cast projects as “transient”. (Paragraph 30) We believe that in cases where areas of ancient woodland may be affected, there is a very real possibility that areas of significant environmental importance - which cannot be re-created or transplanted - will be lost forever. (Paragraph 30)
5. We recommend that there is a role for Government in working jointly with industry in developing the potential for commercial extraction of coal bed methane, including joint funding for exploration, to establish the likely extent of this resource. (Paragraph 32)
6. We recommend that the Department for Business, Enterprise and Regulatory Reform work together with the Department for Communities and Local Government and the Health and Safety Executive [Department for Work and Pensions] to explore the future funding arrangements for the Mines Rescue Service so as to protect the extremely valuable work it undertakes and to avoid the disincentive to the coal mining industry of the imposition of a levy on the extraction of coal. (Paragraph 34)
7. We believe that the collection of below-national-level data is essential in order to underpin the development of policy in this area, and encourage the Department for Business, Enterprise and Regulatory Reform to continue to pursue this aim. (Paragraph 36)
8. We agree with CAT’s assessment that the current price of photovoltaic panels is likely to be a disincentive to their widespread adoption on a domestic scale, and we
22 Energy in Wales: follow-up Inquiry
would support action by both the UK Government and by the Welsh Assembly Government which would stimulate the market – for example, via the planning process – and so lead to a reduction in the price of photovoltaic panels for domestic scale electricity generation. We note the shortage of skilled professionals qualified to install solar panels on roofs, which is likely to inhibit the takeup of this technology and which could be addressed by governments as an aspect of the skills agenda. (Paragraph 41)
9. We continue to find the level of funding provided by UK Government in support of the Centre for Alternative Technology’s WISE (Wales Institute for Sustainable Education) project disappointing, particularly given the Government’s aims as set out in its microgeneration strategy. We urge the Department for Business, Enterprise and Regulatory Reform to reconsider the level of financial support it provides for this important project. (Paragraph 43)
10. We believe that the Government is right to conduct further detailed study of the Severn barrage proposal. Such a scheme has the potential to make a significant contribution to the Government’s targets for increasing the percentage of electricity
generated by renewables and for reducing CO2 emissions. However, given the scale of the project and the extent to which it would impact on this environmentally sensitive and highly protected area it is essential that the most careful assessment is undertaken. This should include consideration of the adequacy and financing of any habitat compensation which is required, which would be on an unprecedented scale. A thorough assessment of the possible financing options should be included, as well as the impact which a barrage across the Severn would have on the infrastructure and economies of the regions concerned. (Paragraph 56)
11. In reiterating the conclusions of our earlier Report of emphasising the importance of climate change and security of supply, we urge the UK and Welsh Assembly governments to develop a more balanced energy mix which fully recognises the continuing importance of Welsh coal to the British electricity supply industry. (Paragraph 57)
12. The Committee reaffirms its earlier conclusions that a long term future for Welsh coal can be guaranteed, if carbon capture technology is fully exploited and a new generation of skilled Welsh miners can be assured. (Paragraph 58)
13. The Committee further reaffirms its earlier support for renewables and sustainable energy technologies and urges policy approaches which are more comprehensive and diverse than the apparent over-emphasis on offshore and onshore wind power generation. (Paragraph 59)
Energy in Wales: follow-up inquiry 23
Formal Minutes
Tuesday 11 December 2007
Members present:
Dr Hywel Francis, in the Chair
Nia Griffith Mr Albert Owen Mr David Jones Hywel Williams Alun Michael Mark Williams
1. Draft Report: Energy in Wales: follow-up inquiry
Draft Report (Energy in Wales: follow up inquiry), proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 59 read and agreed to.
Resolved, That the Report be the First Report of the Committee to the House.
Ordered, That the Chairman make the Report to the House.
[Adjourned until Monday 17 December at 4.00 p.m.
24 Energy in Wales: follow-up Inquiry
Witnesses
Tuesday 16 January 2007 Page
Lord Truscott, Parliamentary Under Secretary of State for Energy, Mr Brian Morris, Head of Carbon Abatement Technologies, Ms Clare Harding, Assistant Director, Energy Technologies Unit and Ms Rachel Crisp, Assistant Director, Energy Technologies Unit, Department of Trade and Industry. Ev 1
Mr Peter Harper, Head of Research and Mr James Cass, Funding and Development Co-ordinator, Centre for Alternative Technology. Ev 10
Tuesday 23 January 2007
Mr Nigel Hughes, Chairman, Mr Clem Llewelyn, Secretary and Mr Les Watkin, Treasurer, Opencast Coal Committee of Wales and; Mr Gareth Jones, Senior Regional Industrial Organiser, TGWU. Ev 18
Mr Rhydian Davies, Director and Mr Richard Nugent, Director, Energybuild; Mr James Poyner, Director, Miller Mining and Director of Miller Argent (South Wales) Ltd; Mr Gerwyn Llewellyn Williams Chairman and Mr John Anthony, Co-Director, Unity Power Plc. Ev 23
Ms Gaynor Ball, Secretary and Ms Suzanne De Celis, Issues Co-ordinator, Protecting and Conserving Together (PACT); Mr Rory Francis, Public Affairs and Press Officer, and Mr Graham Bradley, Casework Manager, Woods Under Threat team, The Woodland Trust. Ev 33
List of written evidence
1 Department of Trade and Industry Ev 39 2 Centre for Alternative Technology Ev 42 3 Opencast Coal Committees of Wales Ev 46 4 Transport and General Workers Union (TGWU) Ev 49 5 Energybuild Group Ev 51 6 Miller Argent Ev 53 7 Supplementary written evidence Miller Argent (South Wales) Limited Ev 63 8 Unity Power Plc Ev 68 9 Celtic Energy Limited Ev 70 10 Protecting and Conserving Together (PACT) Ev 77 11 Planning issues related specifically to Parc Slip/Margam Ev 89 12 Supplementary written evidence Protecting and Conserving Together (PACT) Ev 90 13 The Woodland Trust Ev 91 14 RWEnpower Ev 93
Energy in Wales: follow-up inquiry 25
List of Reports from the Committee during the current Parliament
The reference number of the Government’s response to each Report is printed in brackets after the HC printing number.
Session 2006-07 First Report Work of the Committee in 2005-06 HC 291 Second Report Legislative Competence Orders in Council HC 175 Third Report Welsh Prisoners in the Prison Estate HC 74(Cm 7195) First Special Report Government Response to the Committee’s Second HC 986 Report of Session 2006-07, Legislative Competence Orders in Council
Session 2007-08 First Report Energy in Wales: follow-up inquiry HC 177
Page Type [SO] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 1 Oral evidence
Taken before the Welsh Affairs Committee
on Tuesday 16 January 2007
Members present
Dr Hywel Francis, in the Chair
Mr Stephen Crabb Mr David Jones Nia GriYth Albert Owen
Witnesses: Lord Truscott, a Member of the House of Lords, Parliamentary Under-Secretary of State for Energy, Mr Brian Morris, Head of Carbon Abatement Technologies, Ms Clare Harding, Assistant Director, Energy Technologies Unit, and Ms Rachel Crisp, Assistant Director, Energy Technologies Unit, the Department of Trade and Industry, gave evidence.
Q1 Chairman: Welcome to the Welsh AVairs as I said, to achieve 2 million tonnes does very much Committee. This is a follow-up inquiry. We, as you depend upon the future of opencast, which is, as you know, had quite an important report published last know, controversial in many respects. year on energy in Wales and, because of the significance of the Stern Report and also because we Q3 Chairman: We are given the impression, felt that we needed more evidence on coal, following the Stern Report, that the two big issues particularly in relation to deep mining and surface obviously are climate change and security of supply. mining, we felt that we needed a short revisit to that Would you agree with that, and to what extent will inquiry. Lord Truscott, could you introduce those factors influence the future of the Welsh coal yourself for the record please and your colleagues. industry and, to an extent, other factors as well? Lord Truscott: Yes, I am Peter Truscott, Lord Truscott: Well, Chairman, you are right, that Parliamentary Under-Secretary of State for Energy the two primary drivers really for the whole Energy at the DTI and I have with me oYcials from the DTI, Review process and the forthcoming White Paper on my left Brian Morris, then Clare Harding and are the issues of security of supply and also the also Rachel Crisp, who are here to answer any impact of climate change, and it is really those two questions you might have, Chairman. factors which led the Government to look at the whole issue of future energy in the first place, so I Q2 Chairman: Thank you very much. Could I begin think we look at the two as closely interconnected. then with a question on coal production in Wales. You cannot have a security of supply without Thank you for your memorandum which we found looking at climatechange, sothe two are interlinked. most helpful. In your memorandum, you state that, On the one hand, we do want to ensure that the given consents and depending on the rates at which United Kingdom receives supplies of energy which the sites are worked, projected opencast output in are aVordable and sustainable and, on the other Wales could be raised to 2 million tonnes a year to hand, of course we want to ensure through our 2014, which is the equivalent, we understand, to 50% energy policy that we move to a low-carbon of the current coal demand in Wales. Would you say economy, and on the impacts on the climate change then, given all things being equal, that we are developments which we all know about and were looking at a future for opencast that is relatively covered, for example, by the Stern Review, we have secure? to act in a national sense, but also of course we have Lord Truscott: Well, I would say that does depend to act in the international arena as well because the very much on what happens over various planning UK is responsible for something like 2% of carbon issues which are going through at the moment, emissions globally. We will not achieve everything particularly with regard to opencast. I think Ffos y on our own, but I think it is necessary for us to take Fran, for example, will be a major producer of a lead and for that we need to be looking at supply opencast coal if that goes through the planning issues, security of supply, but also on the demand process, but I understand that may be appealed to side as well, so we are taking the two together. the House of Lords and obviously, were that not to go through the planning process, then that would Q4 Mr Crabb: Of the annual coal consumption in have a significant impact upon the estimates that we Wales, 70% is through the two power stations of have made. Nevertheless, we do think that overall Aberthaw and Uskmouth. We understand that 40% the prospect for coal in Wales does look good of the coal burned at Aberthaw is of Welsh origin, against the background that overall production has whilst Uskmouth relies almost entirely on imported gone down in recent years from 2.5 million tonnes in coal. Of the 60% of coal burned at Aberthaw which 1997/98 to 1.7 million tonnes in 2005/06. As you is not of Welsh origin, can you tell us how much is know, it is likely that deep mining will continue at actually imported from overseas? Do you have that Aberpergwm, Unity Pit and possibly Margam but, information? Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 2 Welsh Affairs: Evidence
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp
Lord Truscott: My understanding is that the Lord Truscott: Obviously we do not want to majority is imported and we are in a situation, I discourage the use of indigenous stocks, but think, if you look at the latest figures from the UK, diversity of supply always makes sense so that you that over 50% of the UK’s coal came from Russia are not dependent on one source of supply, and I and just over 30% from South Africa, so I suspect the would certainly agree with that. situation is similar. I do not know the exact breakdown, to be frank, at Aberthaw, but certainly Q7 Mr Crabb: So how would you respond to people the 60%, my understanding is that the great majority who say that actually imported coal has of that is imported and it is likely to come from the environmental disbenefits and a greener option same source that the rest of the UK gets its would be to use locally sourced coal? supplies from. Lord Truscott: I think we said in the Energy Review that we believe that we should exploit indigenous Q5 Mr Crabb: In your very helpful memorandum coal resources, provided it is economically viable which yousubmitted, it stated that, “The majority of and environmentally sustainable. Providing it meets . . . coal is imported owing to lack either of local those criteria, then I think we should encourage it. output of the required quantity . . . or of reliable We have set up the Coal Forum to look at these absolute tonnage from the remaining coal issues and to get the generators talking to the coal producers”, and Uskmouth uses only imported coal, producers suppliers, to look at these very issues and “having been unable to secure local supplies”. Do to see whether they can come to an agreement over Aberthaw and Uskmouth rely on using imported the question of indigenous producers. coal for economic, technical or supply reasons? Ms Harding: There are clear advantages in Lord Truscott: I think that generators obviously do maintaining a supply from indigenous sources as far look at the economics of where they get their as possible. If you rely increasingly on imports, the supplies from and also there is the question of environmental impacts are, firstly, that that coal sulphur and sometimes imported coal is of a lower may be being produced overseas and not subject to sulphur content than Welsh coal and this helps them the same controls that are applied in the UK, so you to meet their emission targets and there is the revised may be in eVect exporting the impacts that local Large Combustion Plants Directive in the pipeline, communities are objecting to. The coal has to be so those are all issues that they bear in mind. I think imported across great distances and, in the case of the other thing that generators often mention is Russian coal, it is railed substantial distances from security of supply and reliability, and unfortunately the Siberian coalfields to ports and it then has to be in some circumstances UK coal has not been as shipped. The actual environmental cost of shipping reliable and as flexible and as dependable as is not as high as you might envisage and, in terms of imported coal, and I think we saw that when we had tonnes delivered per vessel sailings, the carbon cost a tight supply situation last winter when the general is not significant. Then that coal has to be brought mix is that coal accounts for roughly a third of our into the UK ports and the UK ports, with the growth electricity-producing energy mix, but when we had of imports, have been handling substantially higher the tightness of supply last year, that went up to tonnages of coal and, although every eVort is made about 50% and it was imported coal that made up to make the transfer of coal between ship and the gap. Specifically, to come back to your question, railway as clean as possible, there is inherently dust I do not know whether Clare can add anything. released at that point and it is the port populations Ms Harding: Very little indeed. The Minister is who are aVected by that. That coal is then railed correct, that it is a mix of economic production and from the port to the power station. In the case of the technical reasons. The technical issue is that south Wales power stations, their feed, I understand, imported coal can be of a lower sulphur content and is predominantly railed in, but there are some even with FGD, flue gas desulphurisation, fitted to bottlenecks in the rail system which may need burn lower-sulphur coal or a mix with some lower- further attention, but the longer the distance that the sulphur coal, in the first instance it reduces the total coal is railed in, the more that populations are cost of applying the FGD to the output. aVected by the increase in eVects, so it is a complex Economically, the price of imported coal, the picture and it is by no means straightforward to say situation there is as I set out in the supplementary that it actually has a greener impact on populations memorandum for the previous hearing. On the to export it to foreign countries. production side, we have just heard the figures for coal production in Wales, but clearly with demand Q8 Albert Owen: You will be aware that Carron for the generating sector exceeding the total Energy, the operator of Uskmouth power station, is domestic production in Wales, there is a shortfall considering applying to build a gas-fired power and it had to be met by a mix. station. Do you agree with their assessment that gas- fired, rather than coal-fired, electricity generation is Q6 Mr Crabb: Would you agree with me that relying “best placed to meet the challenges of energy on a diverse supply base of coal with some domestic delivery in the coming decades”? production, but relying on a range of international Lord Truscott: I think that it is a fact that gas usage suppliers, Russia, South Africa, Australia and other is increasing and gas is going to be a big future places as well, that is preferable for a variety of player, but I think we are not saying at this point that reasons than relying solely on indigenous coal there should be one solution to our future energy stocks? needs. What we are trying to develop is a broad Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 3
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp strategy to ensure that we have a range of suppliers power stations in the UK at the moment are mixing for the reasons that Mr Crabb mentioned, that we in the region of about 5% biomass in with the coal have a diversity of supply, but also that we look at a mix. We have been supporting research and whole range of diVerent technologies to provide our development into seeing if we can improve that by as energy, including coal, gas and renewables much as up to 20% of the mix and of course there are increasingly in the future, so I do not think we are benefits to power generators through the renewable saying that there is just one way to produce future obligation certificates which they can earn at the energy supplies. Of course we have to look at the moment through that process, so there are distinct environmental impacts of the production of energy benefits to reducing carbon emissions and obviously and this is one reason obviously why in the past coal I think that is the main motivation of why they are has had the image of being quite a dirty fuel, looking at that. although increasingly we are trying, by encouraging clean-coal technologies and looking at carbon capture and storage, to ensure that electricity Q11 Albert Owen: And you see this as a cleaning up produced through coal is cleaner, but certainly on of what was regarded as a dirty industry? that front gas-fired electricity has an environmental Mr Morris: I would not call it a ‘dirty’ industry, but advantage at the moment. I think it is making a contribution towards reducing carbon emissions from coal and it is a first step in the right direction. There are other things we can do to Q9 Albert Owen: How does that fit in with the reduce carbon emissions, such as the improved security of supply? You reminded us of the near eYciency of power plant and ultimately carbon crisis last winter with the gas supply, so do you feel capture and storage, but it is seen as a first step. It is comfortable that energy generation is moving an economic step which is attractive to the towards more gas in the case of Uskmouth? generation industry. Lord Truscott: When I talk about energy’s security of supply, there are reasons to develop indigenous sources for economic and environmental reasons for Q12 Albert Owen: If I can move on to the supply of the reasons that Clare Harding mentioned about coal for uses other than electricity generation, Tower transportation and looking at the real price of Colliery, which, as you know, is the only deep-mine carbon, but energy supply is also really about production, has an output of 21% going to non- diversity of supply and whether all your energy industrial areas, which is 34% of its income. What supplies do not have to be indigenous to achieve other steps do you think the Welsh coal industry security of supply. I think when the Government could take to go into this new area? now talk about security of supply, they are really Lord Truscott: My understanding is that they talking about the diversity of diVerent sources of already have gone quite extensively into the energy supplied from diVerent parts of the world in domestic market and that there is limited scope for addition to our indigenous sources. Of course we further development there. You mentioned Tower want to prolong the life of the UK continental shelf and I understand that Tower has perhaps about as far as possible, our indigenous supplies of gas and another year in operation, but, Clare, do you have oil, but we will be looking around the world for something to add? supplies of, for example, LNG from diVerent Ms Harding: What I would add to that is that countries, so we want to ensure security of supply Tower, as a deep-mine facility, only has not only through diverse sources of energy, but in approximately another year of operation. I terms of the geographical areas where we receive our understand there is the possibility that the enterprise energy from and diVerent suppliers, so in that sense may continue if they can get consent to opencast we are pursuing security of supply. Every other their mine site and that, I think, will help to justify member of the G7, apart from Canada, is actually the expenditure they have incurred. They did dependent on imports from abroad for their energy develop a pellet-making plant, mixing coal with supply and several have net imports from energy biomass, to develop the lower carbon side of suppliers and that does not impact or it has not generating which has had some success for them, impacted so far in terms of their security of supply praise God, but Tower Colliery is the last remaining or their economic development. significant deep mine at present. There are possibilities of other deep mines coming along in the Q10 Albert Owen: Currently, Uskmouth is actually future, and Aberpergwm, as we have already taking measures to reduce its station’s emissions by mentioned, is receiving support, support which is mixing biomass with coal, for example. What is your granted on the basis that it could achieve an output assessment of that? You mentioned in the vicinity of a quarter of a million tonnes a year, desulphurisation which is taking place now, but and that may be capable of improvement, but that what is your assessment of the eVectiveness of would replace about half of Tower’s output. There mixing biomass, which is obviously renewable and is a further project, I understand, what is being available, with coal? described as the ‘Unity Pit’, its real name being Mr Morris: The benefits of mixing biomass with coal Pentreclwydau, which is probably why it is called are to reduce carbon emissions from burning the ‘Unity’ these days, but that again has a capacity to coal. One of the problems you have though is that become a significant producer of deep-mined coal in you are limited to how much biomass you can the future, and you have already mentioned actually mix with the coal. A number of coal-fired Margam. Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 4 Welsh Affairs: Evidence
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp
Q13 Albert Owen: So in the first part of your answer Ms Harding: This reflects which figures are collected you are quite confident that the opencasts can go in detail and in some cases the estimated figures are into this new non-industrial market and it can be based on ratios from years when we do have detail profitable? and applied to this set of statistics, so it has brought Ms Harding: I would expect the economics of those it as up to date as possible. For example, we may projects, Pentreclwydau and Margam— have detailed breakdowns for, let us say, 2003 and, in producing this table, our statisticians have applied the ratios in 2003 to the 2005 tables. Q14 Albert Owen: And possibly Tower. Ms Harding: Yes, and Tower, they are based on selling the majority of their output into the Q17 Mr Jones: So in a number of respects you have generating market. They will all be capable of accurate figures for 2005 and that is reflected in your producing a certain amount of sized product which table, I take it? is suitable for premium markets. The problem is that Ms Harding: Where we have accurate figures, those the premium markets are shrinking and they achieve are shown here. a good level of penetration already into those markets, so there probably is not much scope for Q18 Mr Jones: Between 2003 and 2006, according to 1 them to increase the level of penetration they have your memo, a total of just over £62 million of coal achieved already. investment aid was given to Tower Colliery and to Lord Truscott: My understanding is though that Energybuild. I understand that coal investment aid there is a market for Welsh coal and certainly, if is now closed to new applications. Is it intended to more Welsh coal can be produced, then they will be replace that with a new aid programme and, if so, able to sell it on. what form would that programme take? Ms Harding: Coal investment aid is oVered under the current EU Regulation, Regulation 1407 of Q15 Mr Jones: Could Irefer youplease to paragraph 2002. That required Member State governments to 1.7 of your memorandum which contains a table notify the Commission of the aid they intended to summarising the coal use in Wales. Now, you have oVer by the 31 December 2002 and the intention to noted there that below-national-level data are not oVer coal investment aid was notified in due course readily available for all the categories of use and and approved. That was for the availability of up to certainly in some respects the use has been estimated. £60 million worth of support under that product. Can you explain why the data are available for some That money has been predominantly awarded. categories of use and not for others, and do you have There is a very, very small amount in excess and it is any plans to collect data on a below-national level? insuYcient to make a further oVer of aid. There is no Lord Truscott: We are making data available of other opening under the current Regulation to below-national use, so the DTI, working together propose a further aid package to the Commission, so with Defra, are committed to collecting and making at present there is no scope under the EU state aid available data on energy production, emissions and rules for a further oVer of aid, and I think it is so on at a below-national level to enable local reasonable to say that it has not been contemplated. authorities, devolved administrations and regional bodies to monitor and implement energy strategies Q19 Mr Jones: It is not intended to replace it? to reduce CO2 emissions. The DTI does currently publish annual sub-national data which include Lord Truscott: There are no plans currently to figures for Wales and its 22 unitary authorities on replace it. electricity consumption, the latest statistics for that being 2005, on gas consumption, the latest statistics Q20 Mr Jones: Again in paragraph 2.4 of your being 2004, road transport fuel consumption, the memo, you refer to coal prices rising in response to latest statistics being 2004, and on the use of strong demand from expanding economies, such as renewables, use of coal manufactured, solid fuels, China. You note in the same paragraph that industrial petroleum, et cetera, so we are doing a decisions on projects to recover abandoned reserves certain amount. We are also looking at levels below are a matter for the site owners. Can you assist the that, looking at data below the local authority level Committee by telling us what you know about any in England and Wales and Defra also do a certain proposals to recover reserves from abandoned amount of work in this area of publishing estimates sources? of CO2 emissions, so we are doing a fair amount. We Ms Harding: I would suggest that the Unity Pit is an are looking at trying to do more both at a sub- example of the impact on the economics of coal- national level and at local authority level and mining that is resulting from the recent increase in currently, as I say, these figures are produced on an prices. The Pentreclwydau mine was in operation, I experimental basis and we are developing the think, until late 2002, but the project to reopen it has production of statistics on these matters. come forward predominantly in response to the increase in coal prices. When one is assessing a mine project, one attaches a value to the coal reserves in Q16 Mr Jones: Some of these figures are precise place and clearly, if you are going to get more per figures and some of them are estimated. Can you tonne for the coal in place under current prices, then explain why that is the case and why are some of it changes the economics of the potential investment them estimated? for participants. Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 5
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp
Q21 Mr Jones: Those are collieries in south Wales. assessed against the guidance which ensures that the Do you know of any in the north Wales coalfield? potential environmental impacts, for example, on Ms Harding: I am not aware of any, no. sites of ecological value are properly considered. Of Lord Truscott: I think a more general point is that, course a planning authority can impose any as the price of coal goes up, increasingly businesses conditions that it sees fit on any consent to reflect the will look to areas of former pits to see whether they concerns that environmentalists or local are viable in terms of reopening them and looking populations have. for new prospects. We are at that point where the price has risen to such a point which makes some of these developments economic, whereas they Q26 Chairman: Could you reconcile your comments previously were not. in your memorandum relating to surface mining being ‘transient’ with the comments in the memorandum from the Woodland Trust who do not Q22 Chairman: Are you aware that there is any refer to things being transient, but who say that if thought of reopening mines in north Wales or there is the destruction of an ancient woodland, that Pembrokeshire? is once and for all and it can never be retrieved? Do Lord Truscott: I have not had any reports of any you have any observations on that? commercial interest at this point in those areas Lord Truscott: That would undoubtedly be the case unfortunately. were it allowed. As I said, Chairman, it would have to go through the planning process and that would Q23 Chairman: Perhaps we could move on to the have to be approved. I think our approach when we V question of the environmental e ect of surface mentioned the transient nature is that, if you have an mining and at this point I should declare an interest. opencast development which is not necessarily I note that in your memorandum there is an aVecting ancient woodland or any area of specific appendix referring to Celtic Energy’s application for environmental importance, then it is possible to start an extension which was withdrawn. That was partly to return that area more or less to its previous state in my constituency and I was associated with local within about three years. I think that is more or less constituents who were opposed to that extension the position that we have taken on that, so it is which I note has, as I say, been withdrawn largely on possible generally to return to the situation that we the basis of recognising the issues which they raised were in before in environmental terms. Obviously, if in relation to the preservation of the ancient there is greater environmental damage to be done, woodland. I am slightly intrigued by the use of the that is something that the planning authorities will phrase ‘surface mining’ and I do not know whether take into account and it may be a reason why the it is a slip or whatever, but I note that in your planning process does not come to a positive appendix you refer to them as ‘opencast’ sites. Is conclusion. there any significance in the diVerence or do you Chairman: Well, obviously we can explore this in a know if there is any diVerence? bit more detail with our witnesses next week. Lord Truscott: No, I am not aware of that. I think certain descriptions are more fashionable at certain times, but there is no particular reason behind the Q27 Mr Jones: I turn now to carbon capture and use of the two forms of terminology. storage. You note in your memorandum that carbon capture and storage is “seen as having the potential Q24 Chairman: I note that surface mining has to make deep cuts in carbon dioxide emissions on suddenly become the way to describe opencast our climate”. The invitation to tender detailed mining or am I mistaken? Surface mining obviously costings for a full-scale CCS demonstration plant is is the phrase which comes from the United States, intended to establish its cost-eVectiveness to enable whereas those who were opposed to surface mining a decision to be made this year. Against what in the United States called it ‘strip mining’. measures will that cost-eVectiveness be judged? Lord Truscott: Well, as far as I am concerned, the Lord Truscott: Well, first of all, CCS is very eVective two terms are interchangeable, so I do not attach in removing CO2 emissions from power plants and it any particular significance actually to the use of the has been estimated that it can remove something two terms. between 85 and 90% of CO2 from the emissions of a power plant, so, when we look at CCS as a Q25 Chairman: How do you answer the objections technology, it is itself potentially very eVective and of various environmental and community groups very eYcient. I think what we have to look at is that opposed to surface or opencast mining on no one has yet joined up all the diVerent elements of environmental grounds? the technology and put the carbon capture and Lord Truscott: Well, obviously there are storage, and particularly the storage, together, so the environmental concerns and that is why we do have technology at the moment is unproven. Nobody a rigorous planning process, but I think what we knows quite how much it will cost and what sort of would say is that obviously, although there are liabilities it might involve, so the position of the environmental impacts, there are now the new Government is that there was an announcement in regulations covering opencast mines which have the Pre-Budget Statement that we would employ introduced quite strict regulations on noise, dust, et consultants to look at establishing possibly a cetera, which should mitigate the potential eVects on demonstration project in the UK. That has gone out adjacent populations. All planning applications are to tender and we have had three applications for that Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 6 Welsh Affairs: Evidence
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp and we will be looking at this matter in some detail. climate change, we need to ensure that countries like We hope that we will have more information and be China and India reduce their emissions significantly. able to come to a decision later in the year. When you think that China is producing the equivalent of a new coal-burning power station Q28 Mr Jones: Has the tender period closed now? every five days, then that is a massive challenge, so Lord Truscott: Yes, it has, and we are hoping that we we are hoping to develop this technology to export will be able to make an announcement on the its use to countries like China and India, to consultants appointed by the end of this month. incorporate it first of all into the European Union’s Trading Emissions Scheme and then, on a global level, hopefully to ensure that it is part of a global Q29 Mr Jones: You refer to the Energy Review. The emissions trading scheme as well, so it has Energy Review notes that, “Before CCS can happen tremendous potential. If we are going to achieve our in the UK, a legal and regulatory framework needs aims globally in reducing emissions to a significant to be established which would enable operators to level, then it seems to me that CCS is one of those bring forward CCS projects that are safe, that technologies which holds the key to it. minimise potential environmental risks and that assign responsibilities appropriately between the public and private sectors”. What progress is being Q31 Mr Crabb: Thinking about our domestic coal made towards establishing that framework both at industry, you are probably aware that the recent an international and a domestic level? Commons Science and Technology Committee’s Lord Truscott: Well, my brief here says that we are report actually expressed some quite strong doubts making good progress on the development of a about whether CCS can be retrofitted on to our fleet regulatory framework, and at the international level of coal-fired power stations, so that is why I certainly there has been some real development questioned you about the demonstration project because there has been an amendment to the here in the UK. London Convention permitting the injection of CCS Lord Truscott: Well, there are questions about that into oVshore sub-surface aquifers, and that is and that is why we have not committed to one expected to enter into force next month. We have straightaway because we do not know fully whether also made pretty good progress with OSPAR which the technology at this stage will work, although prohibits disposal in the North Sea, so both theoretically all the parts work and it is fitting it all internally, where the Government is having together, and we do not know the cost, although we discussions between government departments to are not the only ones working on CCS and there are establish a regulatory framework, and other countries, the United States for example, but I internationally we making quite good progress. We think we do need to look at it seriously. I think it is expect to follow this up later in the year with a one of those technologies where we should not just formal consultation, so things are progressing, sit back and wait for another country to come up although we are not there yet obviously. with the answers, but, if we can make a contribution, Mr Morris: There is a task force set up within the then I think we should attempt to do so. DTI which is investigating how do we develop a Mr Morris: In relation to China and India also, they regulatory framework for carbon capture and have made it quite clear to us that they would expect storage and it is looking at a number of options as to to see Europe and possibly America lead the way in how we can take forward that regulation. There demonstrating these technologies. I think their have been two workshops at the end of last year for general feeling is that they have priority for security which we had a good attendance from industry, of supply to feed their economic growth and, “If you again providing advice and input into the thinking, want to demonstrate to us that these technologies but there is going to be a consultation, as the will work, then we will think about them once you Minister has said, during the early part of this year. have demonstrated them yourselves” so they are I think the bottom line is that we are still not totally expecting us to demonstrate the technologies first. I clear how we want to develop that regulation and I should also add that there is a project which the UK think that is why the consultation is very important initiated under its EU Presidency back in 2005 where because there are a number of ways you can do it and we are actually looking at the feasibility of a you actually want to try to get the best way to do it, demonstration plant in China. It is being funded by so that is the whole problem at the moment. Defra and the DTI and it has been done under the auspices of the European Union, and the Chinese Q30 Mr Crabb: What do you genuinely see as the are gradually warming up to that project, but it has real value of a CCS demonstration project here in taken quite a long time. the UK? Is it about demonstrating the technology which could have widespread application in the UK Q32 Mr Jones: That is rather disturbing, Mr Morris, or is it more about something that could be exported because China and India are fast-expanding to countries like China and India which is where the economies and, as you say, China are opening one really serious potential for cutting carbon new conventionally fired power station every five emissions lies? days. They do not seem to be that enthusiastic about Lord Truscott: I think it is both. It is both in terms CCS technology. of the UK’s use of it and, Chairman, Mr Crabb is Lord Truscott: I think that is because to a certain right, that it is also the international application as extent they see this problem as a problem that in a well because really, if we are going to deal with sense was created in the industrialised West and they Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 7
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp are saying why should they limit their economic and highlight some of the key headline activities that growth for a problem which in a way was developed we are undertaking. In relation to tackling costs, of in the West. Before they do anything about it, they course we have our capital grant programme which want to see that we are not just using it as a way to now totals £80 million, and we are also taking steps restrict their growth, some form of international to help microgenerators benefit more easily from protectionism, but that we are actually serious about access to renewable obligation certificates and these matters. They are also willing to look at it in monetary benefits associated with those. We are terms of reducing emissions. I do not think they are undertaking a programme of work, both following very keen on the idea of reducing emissions if that the strategy and also in relation to the distribution/ reduces growth, but, if we can sell to them that this is generation work going on following the Energy not about reducing, or holding back, their economic Review, in relation to ensuring that exported growth, this is about energy eYciency and that it will electricity from electricity microgeneration benefit their economies, then I think that is an technologies is rewarded appropriately by the argument that is a lot easier to sell to countries like energy supply companies. We are also looking at China and India. how to incentivise the renewable heat microgeneration technologies under the wider Q33 Albert Owen: You mentioned the West and you strand of the Biomass Strategy which is being mentioned America. Is there any partnership developed at the moment following the report between Britain and America in developing the produced by the Taskforce led by Sir Ben Gill, so technology for this or are we going alone on it? there are a number of measures in relation to Mr Morris: We have a memorandum of tackling the upfront costs there. In relation to understanding with the United States which is information constraints, there are a number of areas currently looking at two projects. One is on the in which we need to tackle those both about necessary materials needed to enable technologies, providing better information for the consumers who such as carbon capture, to happen, obviously want to actually go out and purchase one of these improved metals to take higher pressures and higher technologies so they can make a good purchase, but temperatures, that sort of thing. A second project is it is also about working with local authorities and also looking at a virtual demonstration plant so that planners, et cetera, to understand these technologies you can actually simulate the demonstration on a and the impacts in the local environment so that they computer, and those two projects have been in the can appropriately promote them within their local oYng for about three years. We are looking with our areas and working with the construction industry so American colleagues at also taking forward that they can start to incorporate technologies as a international workshops between both countries, so matter of course rather than as a one-oV. I think we are working together in that way, but we also those are the headline measures, but if you want me collaborate in other activities, such as the Carbon to continue going on in more detail throughout the Sequestration Leadership Forum and through the strategy, I am happy to. International Energy Agency as well, so it is at two levels, one at the international level and one at a sort of bi-lateral level. Q36 Mr Jones: To what extent is it proposed, possibly in conjunction with the devolved administrations and other departments, to Q34 Albert Owen: Do you see America’s incentivise the take-up of microgeneration through commitment as real? the planning process? Mr Morris: They are prepared to put $1 billion into Ms Crisp: As I understand it, both the Welsh their FutureGen project which is a gasification Assembly Government and the Scottish Executive project, which is coal gasified and then it will are in the process of working up their own generate hydrogen after stripping out the carbon microgeneration strategies to work alongside the dioxide. UK strategy overall, and I would not want to comment on what is included in those documents as Q35 MrJones: Could I turn now to microgeneration. they are not yet published. The Government’s Microgeneration Strategy which was published in March of last year noted that “a range of constraints is currently aVecting the wide- Q37 Nia GriYth: You talked about the capital grant scale deployment of microgeneration”, which they programme. One of the issues which has been raised identified as cost, information constraints, technical to us has been the issue of the manufacturers constraints and so on. What action is the knowing what the situation is going to be because Department taking to counter these constraints to obviously they want to plan long-term and they do encourage the take-up of microgeneration feel very strongly, particularly people like the solar technology? panel manufacturers, that if they know well in Lord Truscott: We are active in this field, but advance what the sort of subsidies are likely to be, perhaps I can pass over to our expert on they can judge what the sort of uptake is going to be, microgeneration. and they do see a very significant diVerence between Ms Crisp: We are undertaking a number of actions. what the Government does and does not subsidise. They are actually laid out in the Microgeneration The question really is: in what way can we guarantee Strategy in response to tackling those constraints a longer-term view, if you like, of where things are laid out. Perhaps I can just go through them in order going to go in that respect? Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 8 Welsh Affairs: Evidence
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp
Ms Crisp: I think a key announcement in relation to Sustainable Education, and I hear what you say providing that long-term certainty was the about local authorities, but what sort of financial Communities Secretary’s announcement launching support is the DTI giving projects such as WISE so the Code for Sustainable Homes and setting out the that it can develop these alternatives? Government’s target of all new homes to be zero- Ms Crisp: I am not aware of any funding the DTI carbon by 2016 which provides that kind of long- has given directly to the WISE initiative. I term regulatory framework in association with understand that, following the hearing of the regulations which, from my conversations with the previous Energy Minister at this Committee, there industry, is seen as more certain than perhaps was perhaps a reference that the Centre for government subsidy programmes. The real key to Alternative Technology would write to the DTI promoting this industry over the long term is in setting out some of its initiatives so that we could terms of getting that regulatory framework correct, then look to see where we could work with them and so I think that announcement set out where we are take these projects forward, perhaps in association moving towards and sort of developing further with— thinking as to how we get towards that zero-carbon home standard, so I think that is quite important. Q40 Albert Owen: You are saying that that has not Obviously the support provided for the Renewables happened, as far as you are concerned? Obligation is over the long term as well given the Lord Truscott: I have just seen it in my notes on the nature of that mechanism. Centre for Alternative Technology. From our Lord Truscott: I think also the message from the capital grant programmes, we have given £77,523 Government is that, as far as the Microgeneration for a PV system, a major PV demonstration Strategy is concerned, it is what individuals can do programme, and £25,000 for a biomass boiler, so we themselves to reduce their emissions, their carbon have provided— footprint, so it is also part of the message that we can all play our part in reducing emissions and we do not Q41 Albert Owen: But not for this particular project, just have to leave it to business or the Government, WISE, the education aspect of it? but we ourselves can reduce our emissions and make Y Lord Truscott: Not as far as I am aware. our homes more energy e cient. Ms Crisp: Not as far as I am aware, no, but it is possible that it may have got it from the Department Q38 Chairman: We were very impressed when we for Education and Skills. visited Denver, Colorado with the workthat the City Mayor was involved in as part of the wider Green Q42 Albert Owen: Because the directors tell us that City Alliance. Are you familiar with all of this and they need this investment now so that they can move have you taken account of the developments in the forward and produce local plans so that the UK can United States in cities like Seattle, Denver and benefit from it. We will obviously put this question Chicago? to the witnesses later, but what you are saying to us Lord Truscott: Not personally, although I have is that they have not made a formal application to heard of it, but I will be open to taking on board you for this project? these international examples. I have not actually Ms Crisp: As far as I am aware, the Department has made any visits outside of Europe yet in my role as not received any formal communication from the Parliamentary Under-Secretary of State for Energy, Centre. but I will, hopefully during the course of the next few Lord Truscott: If we discover diVerently, perhaps we months, be making some visits to actually see how can write to members of the Committee following up other countries handle these issues. We are doing Mr Owen’s question. quite a lot in this country and we have got quite a few initiatives. I was interested to read, when I was Q43 Mr Crabb: The Pre-Budget Report spelled out reading the brief for this meeting, of groups like the important role of the public sector in setting an Shropshire County Council who are establishing a example for people to improve their energy framework, a roadmap, to ensure that they can eYciency and limit their environmental impact and reduce carbon emissions by 60% by 2050 and there it also spoke about the obligation on all government is Ashton Hayes in Cheshire which, with a departments to produce action plans to reduce population of 1,000 people, is bidding to become the carbon emissions and to produce them annually. first carbon-neutral village in England with funding Can you very briefly update us on your own from its local authority, so there are things that we Department’s action plan and specifically which are doing and that our communities are doing in the proposals within that would you regard as likely to UK, so whilst I am always happy to learn from have the most success in reducing the Department’s abroad, I think there are a few lessons for us nearer carbon emissions? to home as well. Lord Truscott: Looking at the DTI’s main strategy to reduce carbon emissions and to reduce Q39 Albert Owen: Absolutely, and one of the lessons substantially the size of the DTI’s main HQ estate, which has created a model in Wales is the Centre for and I can give you some figures for the DTI’s Alternative Technology, our next witnesses, which executive agencies’ performance, on carbon this Committee visited last year and saw for itself. emissions from 2003–04 we reduced carbon One of the new education projects, which you will be emissions by 14%, in 2004–05 by 15% and in 2005–06 aware of, is the WISE Project, the Wales Institute for by 17%, so we have made, I think, quite a lot of Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 9
16 January 2007 Lord Truscott, Mr Brian Morris, Ms Clare Harding and Ms Rachel Crisp progress in terms of, as a department, reducing the Q46 Albert Owen: I was not trying to trip you up; I estate’s footprint. On renewable energy, we bought was just asking a very genuine question. in in 2005–06 something like 33%. Departments Mr Morris: There are more people working in the overall are hoping to source about 15% of their building. electricity by 2010 from combined heat and power. The DTI is taking a number of steps to improve its Q47 Mr Jones: Minister, I walk past your building energy eYciency, including staV awareness on my way to work every morning, and I have noted campaigns, benchmarking the estate with other a fleet of Toyota Prius hybrid cars. Are those to be government departments, the use of energy-control rolled out throughout government generally? technology, the use of lighting control and building Lord Truscott: On the specific question I would have management systems, the introduction of energy- to write to you, but I know that their use is being minimising technology within IT systems, and encouraged in government departments. My energy generation itself. The Carbon Trust’s survey Ministerial car is certainly a Prius, so we are being conducted in 2004 ascertained that the renewable encouraged to move down that path. As I energy generated is likely to only be a very small mentioned, we do have targets as far as energy proportion of the total energy consumption of the eYciency for the vehicle fleet is concerned, so that building. I could go on, but the DTI is working will inevitably encourage the use of hybrid or low- towards achieving a 15% reduction in carbon emission vehicles. emissions from road vehicles through government operations by 2010, relative to 2005–06. The general Q48 Chairman: Thank you very much for your message is that we are doing our bit to reduce energy evidence, both written and oral. If you wish to add emissions and to save energy, and I think the DTI is anything further in terms of the Department’s doing quite a lot on that front. contribution to reducing carbon emissions it would be extremely helpful to receive that. We, in turn, could send you the contents we have in relation to Q44 Mr Jones: You mentioned energy self- the Green Studies Alliance, although I am sure those generation. As a matter of interest, what form does are quite easily accessible anyway. that self-generation take? Ms Harding: If I might just supplement the last Lord Truscott: I think we are currently looking at answer the Minister gave in relation to the energy self-generation. Rachel, do you have any environmental eVects of open cast briefly, he information? referred to the time taken to restore the sites. If I Ms Crisp: We did put some photovoltaic panels on could just clarify, restoration generally starts within the building of the Insolvency Service Headquarters three years of the void moving forward in a site. in Bloomsbury Square, but they produced a small Actual restoration of the site will take longer, part of the electricity consumption of that building. depending on the size of the site and the nature of the We have recently been looking in more detail at restoration work to be done. We would be happy to which technologies could be more appropriate for provide you with some additional information on the government estate, given where our buildings are that if required, but I am sure you will hear a fair situated and the constraints around those, amount about that when you take further evidence particularly within central London. It is possible next week. that solar water heating might be the most appropriate technology for our building, but we are Q49 Chairman: Thank you very much. If you could still going through the process of looking at reports identify any examples of good practice either in provided for us. Wales or elsewhere, we would be interested to receive it. Ms Harding: Might I inquire whether the V Q45 Albert Owen: Do you put the lights o at night? Committee has visited an open cast site? It is a big issue. Ms Crisp: We do have movement-activated lights Q50 Chairman: I have, many times, recently as well, that start operating—I am not sure, I think it is after but the Committee has not. Would you encourage us six o’clock at night—so parts of the building will to do so? go dark. Ms Harding: I think it would be worth your while to Mr Morris: I think there was work going on in the see the operation in progress. building at the time those lights were left on. Chairman: Thank you very much. Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 10 Welsh Affairs: Evidence
Witnesses: Mr Peter Harper, Head of Research, and Mr James Cass, Funding and Development Co- ordinator, Centre for Alternative Technology, gave evidence.
Q51 Chairman: Good afternoon. Welcome to the and take more exercise”; you have got to do Welsh AVairs Committee and thank you both for something very quickly. We are sort of in that coming along, from the country, I take it. For the situation. So we need to do lots of things quite record, could you please introduce yourselves? quickly. At the same time we need to build Mr Cass: I am James Cass. I am the Funding and fundamentals; obviously, a sustainable society. Development Co-ordinator, Centre for Alternative These things are not necessarily exactly the same Technology. thing. If we had more time we would probably have Mr Harper: I am Peter Harper. I am the Head of a slightly diVerent strategy but we do have to throw Research at the Centre for Alternative Technology. quite a lot of technology at it in order to keep the Chairman: Thank you. We will begin with climate thing from getting out of control. There is no change. surprise about it, it is a combination of reducing demand for energy, using low-carbon technologies Q52 Nia GriYth: I think it is 38 years of crying in the and on a technological basis from the top down but, wilderness and, at long last, it seems somebody is also, of course, encouraging good behaviour in all actually listening to you. What we are, obviously, parts of society, from households, individuals, V particularly interested in now is the timescale we businesses, government, of course—all the di erent have got in which to face up to the problems and the parts of society have to play their part in this. I crisis. You mention in your memorandum that to should mention the carbon capture and storage minimise the risk of crossing the threshold for really because that was something that came up at the last dangerous climate change by 2015 the world would session. That is an example of a kind of first aid need to be cutting carbon emissions by 4–5% technology that we really should be pressing very annually. Is that achievable? hard, I think, to bring forward. We do not know how Mr Harper: Yes, it is. It is not that easy but I think small this window is; it might be 20 or 30 years, but the publication of the Stern Review has made quite it might actually be getting smaller, so we do need to a big diVerence. I think we can say that is a look at all the possible options, and carbon capture watershed. In referring to us crying in the wilderness and storage is obviously going to be an important for 30 years, essentiallywe are saying the same things one. and have been saying them for a long time, but these things do take time to get through into the body Q55 Nia GriYth: Essentially, are you saying that politic. If you look at the Stern Review, it actually given the right resources we would be able to develop lays it out in fairly clear terms that we could achieve technologies that could actually, if you like, save us? this and without too terrible a penalty in terms of Mr Cass: We are saying that, but we are saying that economic growth. Some, but it is possible. We think we need to really decide which tipping point we are we could do it, but the window is quite short—that at as well. We are approaching, almost everybody is one of the troubles—and there are delays in the would accept now, a climate change-style tipping system all the time. One of the delays is to do with point. Things like the Stern Review do make a research, because a lot of research takes many years tipping point because they tip the economists in the to come into fruition. So you might well have the right direction as well. Really what we need, funding to do things and be determined to do it, but alongside the technologies, is, if you like, a political if you have not got the data to make the correct tipping point as well; we need now to have massive choices then you make wrong choices. I really feel resources put behind huge public engagement that is a very important and neglected aspect and V programmes so that people out there in the world, that we have to be putting a lot of e ort into research and the world outside these buildings, and outside now for the technologies that we might be starting to organisations like CAT get a really clear deploy, maybe, from 2015, 2020 onwards. appreciation of what climate change is, what it means, the eVects it is going to have on us and the Q53 Nia GriYth: Do you feel there has been much things that they do in their everyday life, and how progress in terms of developing technologies over that impacts upon these issues. For instance, at the the last 10 years? moment, when people use electricity in their homes Mr Harper: Yes, there has, but nowhere near fast they have no real concept, for the most part, of how enough. If you are going to make changes of 4–5% a much electricity a radio uses in comparison to a year then you have to work much, much harder. I do power shower, or a kettle or a hairdryer. What we not know what is going to happen with the outcome need to do is to make these issues very real for of the energy review, the Stern Review. I do not people; both the eVects of climate change and what know whether the Government is really sitting up people can do in the home and the amounts of and paying attention. I certainly hope so. energy that people are using, both within their homes and then through transport issues, and that Q54 Nia GriYth: Which particular technologies kind of thing. At the moment, I think, people are would you think would be most advantageous in poorly prepared to understand those issues. Yes, we helping us to combat climate change? need technologies, but we need two other things as Mr Harper: We have to look at it on two levels. well: we need massive public engagement There is a certain degree of first aid, we might say. If programmes and we need to work very, very hard to somebody is knocked over in the street and lying bring our power consumption down as well. We use there bleeding you do not say: “Eat your vegetables five times as much energy now as we did in 1950 and Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 11
16 January 2007 Mr Peter Harper and Mr James Cass
13 times as much as we did back in 1900. That is international agreements are often diYcult to extraordinarily significant, and something we need achieve and it is very important for, let us say, to work on very, very hard. privileged economies, like Britain, a take a lead here. I really think that it is very, very important that we Q56 Albert Owen: Just on something that Mr should take the lead, and that we should Harper was talking about, some low-carbon action demonstrate that we are aiming for a sustainable (this is not to trip you up), I was reading when we level that would be sustainable if everybody else did were doing our review on the new international it. What if everybody did it? That is what we should centre, no less, that the founder members of the always ask ourselves. That applies to China and Centre are actually pro-nuclear; they believe that India too, but you have to remember that their nuclear generation, because of its low carbon, is carbon emissions per capita are way below ours. It actually better. It is in the context that with nuclear seems a bit of a cheek to ask them to do anything disaster and climate change disasters, we could do before we have done it ourselves. We have to set a more about limiting that carbon climate change. good example. Yes, there could be lots of economic What is the position of the Centre on nuclear advantages to it; if we can see ahead and develop energy now? these new technologies that would create fantastic Mr Cass: We do not support nuclear energy. There export opportunities. I am particularly thinking was a bit of a problem a few years ago with a feeling about Wales, and I think Wales is the kind of place that, maybe, people at CAT did support nuclear where we ought to be able to develop these things. energy. Basically, nuclear energy— Also, in terms of lifestyle and aspirations. That is beginning to sound a bit ideological, but that is an Q57 Albert Owen: But it is true that founder important part of the message that we are sending; members did— that there are diVerent patterns of development that Mr Cass: No. just do not involve simple, economic growth. There is qualitative growth which is actually more Q58 Albert Owen: It is quoted. important than quantitative growth, and this is the Mr Harper: I think that was just a mistake. They did important message that countries like Britain ought not check it out, really. It was a series of Chinese to be able to send. whispers, I am afraid. It was a good story. Mr Cass: Nuclear power falls into that bracket that Q60 Mr Jones: What is your assessment of the we are in at the moment of being, if you like, energy willingness of these expanding and developing obese. We are using huge and extraordinary economies to take on board new technologies? amounts of energy now, and what we really need to Mr Harper: New technologies, yes. Most people in do, where we really need to engage with the public, developing countries are rather (that is my feeling) is to power down; hugely reduce the amount of techno-centric. Certainly the ‘early adopters’, the power that we are using whilst still maintaining wealthy parts of society are very technical—they like levels of well-being at a satisfactory level. Right at that sort of thing—but they are not so keen on the the end, once we have worked through all those lifestyle changes. Yes, they will be very receptive to reductions and looked at much better options, like a new technologies. much larger share of local regeneration of energy, then we can look at the large-scale, big coal-fired power station with appropriate CCS technology in Q61 Mr Crabb: Would the Centre for Alternative order to plug the gaps that might be left by Technologies endorse the view of some renewable technologies from time to time. There are environmental groups who believe in zero lots of intelligent ways we can work with energy in economic growth? order to really reduce it and then to keep the Mr Harper: Absolutely not. No, I would say that National Grid going in order to plug any gaps there was a sort of mistake, but it depends what you mean. might be from time to time. It is usually a question of definition what we mean by “zero economic growth”. If the economy is to a Q59 Mr Jones: Speaking of Chinese whispers, the very large extent dematerialised, so there is lots of departmental witnesses, of course, mentioned the added value going on but the material flows and the impact of expanding economies, such as China and energy flows are entirely without damage, they do India, on carbon emissions. To what extent do you not accumulate or they do not deplete, you can say feel that the development and take-up of new energy that was a kind of steady state economy in a certain technologies can deliver suYciently to counter- sense, but it still might grow in terms of added value. balance the eVect that economies such as China and There might be a question of definition here, so India are having upon carbon emissions? people might be arguing from two diVerent Mr Harper: Of course, in a sense, it makes no premises. diVerence because, as we all know, from the Prime Minister’s recent remarks, Britain is only 2%, or so, of the total carbon emissions, so even if we reduced Q62 Mr Crabb: It was Friends of the Earth. it to zero that is only 2%, and it is a global problem. Mr Harper: All right, it could be that economic We cannot save the planet on our own; we have to growth is, in some sense, socially irrational, given have international agreements.That is the only thing the evidence that we do not seem to be any happier that is going to do it. It seems to me that than we were, say, in the 1950s. The economy is three Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 12 Welsh Affairs: Evidence
16 January 2007 Mr Peter Harper and Mr James Cass times bigger but we do not seem to be that much very lucky that part of the constitution commits us happier, so all that activity was irrational, whereas in to sustainable development, this is a really positive India and China growth is very important to them. move, but there are hundreds of other things we could do. For instance, if all civil servants were tasked with not just specific economic targets and Q63 Mr Crabb: Life expectancy has gone up. budgetary targets; if there were specific sections in Mr Harper: Yes, there are some things that have every single target for every civil servant to deliver improved but other things, perhaps, have not. In sustainable development and then places like the poor countries economic growth is an absolute Wales Institute for Sustainable Education were up necessity; you just cannot deliver the basic quality of and running and ready to receive those civil servants life without a certain measure of economic growth. in order to make sure that they have a really clear Personally, I would say we have gone past the point understanding of what climate change is, how it is where it really makes sense to bust a gut to try to going to aVect us and what we need to do in order to make the economy grow, but perhaps that is an change our society so that it is climate change argument for another time. compliant for the future—the list is quite endless but the point is we really need to start moving on it as Q64 Albert Owen: You have set out the background soon as possible. very clearly there, but what sort of actual measures do you think can persuade people to break away Q66 Albert Owen: I hear what you say about grants from their addiction to fossil fuels? Just to add to because for somebody who has gas as their main— that, is pricing alone the answer, because I note a every household has basically and a lot of industry paper from one of the directors suggesting that it is. is reliant on it—you feel there should be grants, and Mr Cass: Pricing is one of a portfolio of answers to I can understand that, and under the “Powerdown” this. What we need to establish is: do we accept that part of your paper and “Renewables” you refer to climate change is possibly the most damaging thing this. Apart from the grant—I understand about that has ever faced our society? When we get to that awareness—is there something more practicable? stage at all levels, we then move on to a completely Mr Harper: We do need to be helped by price V di erent situation where we start looking at signals. There has to be gradually increasing prices V completely di erent ways of powering our society, on all sorts of carbon-intensive activities. You the way that we live and the way we assess wealth. probably know about the rebound eVect that Is wealth just an economic construct or is it a mock happens when people save energy: they save money construct? Is the concept of well-being a more and then they can, very often, spend it on something sophisticated way of measuring wealth? even more carbon-intensive—it does not really help very much—but if there are carbon taxes of the right Q65 Albert Owen: We all agree that is the case, but kind then, of course, they do not do that because the what are we going to do to induce people to change taxes discourage them. We are going to need their habits and reduce their reliance on fossil fuel? something of that kind, just to give people an idea to We know it but what do you think should be done? help target the things which we ought to do less of. Of course, that would immediately start to trigger all Mr Cass: My gut feeling is that the public is ready V for quite important political action. In fact, I think sorts of other technological e ects, but that would a recent MORI poll found that 70% of the UK particularly give households a better idea. It should population understands climate change is serious come in very slowly, of course, and it should be signalled well in advance as to what is going to and wants change, but does not know what to do. happen so people can plan for the future. The vast majority of those people, I feel, will look to national scale initiatives in order to make a real diVerence. So there are all sorts of things we need to Q67 Albert Owen: What is available now? I am not do; we really need to gear up and power up the promoting assets in any way but there is micro- technologies that people want, because that is quite generation for individual households, and the often the first thing that people want when they want expense is there. People know there is about a 7 or 8- to engage with this huge issue, but we need as well year payback on thosedevices. Do we accelerate that to have this massive public engagement programme and get the costs down or do we invest in new that I talked about as well. We need to engage with technology? the public in all sorts of diVerent ways: public Mr Harper: Personally, I would say, and we information broadcasts, TV, newspapers, initiatives have a debate about this amongst ourselves, from government—there needs to be a lot of money that retrofitted renewable generation—micro- put behind making really big diVerences. There need generation—is probably a mistake. At this stage it is to be big grant programmes in order to get the kinds probably too low a priority. For old, existing of technologies into people’s communities that are buildings we should concentrate on bringing them absolutely necessary and far more eYcient than the all up to the present Building Regulations standard. kind of central energy generation that we use at the This is what is happening in Germany; they have moment. It has to be that combination of the public committed themselves to bring everything up to a being ready—which I think we are at that tipping certain level. Most people live in old houses. We point—the public are there and receptive, and it know we can build nice, zero- energy new houses but needs massive political action now. In Wales we are most people live in old houses. So we should commit Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 13
16 January 2007 Mr Peter Harper and Mr James Cass ourselves to addressing that side of it. At the Q70 Albert Owen: My colleague, Mr Crabb, household level, householders, on the whole, should mentioned zero economies. Are you saying that our be concentrating on energy saving and energy lifestyles have to change that drastically to achieve eYciency. We can deliver that. When it comes to new what you are proposing? houses, all right, we can design them properly and Mr Harper: Some things, because some things are introduce 10%, or much more, on-site generation, not fixable. We can fix houses and probably cars, but retrofitting is probably not something that there are all sorts of these technical fixes we can do. should occupy too much of our minds at the There are two things we probably cannot fix: one is moment. aviation. There is no prospective technology to fix Mr Cass: Also, we have to be ready, because there is this, alternative fuels, it does not matter, we can use the low-hanging fruit but what we need to be doing biofuels in aeroplanes, but they still produce now is gearing up for the next stage of these 4-5% stratospheric global warming eVects, so I do not see reductions year-on-year. Once houses are retrofitted a way around that. The other one is the high level of and far more eYcient we have to be ready to look at meat consumption. This is a real hot potato, I know. far more eYcient local generation at community There is no way around that because livestock scale, whether it is community scale wind farms and themselves produce a large chunk of our emissions. wind turbines, community combined heat and If we have got to reduce overall emissions down to power systems or using local biomass resources, 80% then it is very diYcult to see how we can do that because most of the UK is still powered by fossil without reducing livestock and therefore fuels when, in many ways—if you think about it— consumption of animal products. Those two factors we have energy shining on us, blowing past us and will impact, people will notice them, whereas other flowing past us all the time. The major shift there has things we might be able to fix by being very clever. to be in the long term—once we have dealt with the That is my reading of it. low-hanging fruit—is to think about energy in those terms, really bring the levels down and then the Q71 Mr Crabb: The second strand of CAT’s energy that is available to us most of the time plus proposed strategy to combat climate change is to some intelligent load management will mean that we further develop renewable forms of energy would be able to deal with our energy needs locally. generation. How would the problem of intermittent supply be overcome? Wind power? Q68 Albert Owen: A couple of points specifically on Mr Cass: It is very important, first of all, that we this “Powerdown plus Renewables” strategy that remember once again that we have vastly increased you are talking about. First of all, you are talking the amount of power that we have used in a about organics that are locally produced and we relatively short period of time without increasing have seen the debate in the media over the past few our well-being, so we need, first of all, to look at weeks about your local versus imported and the fact reducing as much as possible our demand and then, that maybe locally-produced products cannot be after that, renewables start to play a very important grown organically to meet the demand, so there is an and significant part of our energy generation increase in fertilisers used locally. Did you take that strategy. We would say that there are all sorts of into your equation, that we might have to rely on measures you can have: intelligent metering systems transportation from other areas? or diVerent kinds of billing structures with your Mr Harper: We might, but that remains to be seen. energy company. For instance, there are lots of I think we should certainly give it a try, we should storage heaters in Wales and the storage heaters work on that basis. There should be a presumption could be turned oV at certain times when there are on local, on organic and on reducing the amount of peaks and the energy needs to be used elsewhere. If livestock, that is another thing we probably have got we had intelligent metering systems in people’s to do. There are all sorts of things the statistics show houses you could have a contract with an electricity us quite clearly, directions in which we ought to go, generator that would say, “Okay, put your washing so we ought to go there, and if we cannot do it for machine on overnight”, but the signal comes various reasons, all right, we will need to look again, through the line, in order to turn the washing but, yes, certainly the food and agriculture sector is machine on at the right time you ought to make sure a big sector. A quarter of all carbon emissions comes that everything does not peak in a way which would broadly from the food and agriculture sector, so that undermine the supply of energy at that particular V is very important. time. There are all sorts of di erent things. Research into that kind of technology that really sorts out load management would be very important. Q69 Albert Owen: So you believe it is achievable and Mr Harper: I think the intermittency problem is cost competitive, but would it deliver equal levels of hammed up a lot by opponents and at small levels of well-being for people? penetration it is not really a problem. The electricity Mr Cass: Yes. I think in the end we have to make this system—of course not all energy is electricity—in switch to people seeing wealth in terms of well-being particular has to deal with enormous fluctuations rather than salary over a long period of time and anyway and so small levels of penetration it can intelligently, but, yes, I think it is achievable and in easily cope with, that is not a problem. Of course, we many ways we have little choice. are asking for a huge amount, maybe 40 or 50% of Mr Harper: Are you saying, “Does it redistribute?” the total energy input that is going to be renewable when you say “equal”? of one kind or another. Some of the renewables, of Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 14 Welsh Affairs: Evidence
16 January 2007 Mr Peter Harper and Mr James Cass course, are dispatchable, they are reliable, and a lot local initiatives, local people getting together to of them are variable, but if you put them altogether pursue these activities, and it is heart-warming, it is they are not so variable. Even on one particular good. Regeneration of that sense of local technology, let us say wind, it is very unlikely there community I think can come, and with links between will be no wind anywhere if it is all going into the householders, generators and farmers you can get grid. A distinctive feature of our approach at the much more personal relationships going, everybody CAT is to say we believe very much in local knows where everybody is and where the stuV is generation as far as possible but also we believe very coming from and flowing to. That is good for a local strongly in the importance of the grids, not just the community. electricity grid but the gas grid. The gas grid and the electricity grid can back each other up and also we Q73 Mr Crabb: In terms of your call for more should have links to other parts of Europe of course, resources to be made available for the development which we do now but we think they should be of renewable resources, what kind of order of strengthened and we should have very strong grids. magnitude step change in terms of increasing With the combination of trying to invest in local resources do you have in mind? If the Minister was generation but having very strong grids, I think then to ask you to put a figure on it, what are we talking we would be able to reconcile the high level of about here? renewables and security of supply. We should be Mr Harper: On a national scale? able to do that, especially with measures, like James is mentioning, much stronger measures of load Q74 Mr Crabb: Yes. management at all levels which at the moment we Mr Cass: On a Welsh national scale, I suppose, the really have not explored. For lots of households, lots Stern Report would have put it at about a third of a of the loads are not neededmost of the time, they can billion pounds a year from now on in. I would be cut in and out without you noticing them, but, of suspect that we might need to spend a bit more than course, things like lights you want on all the time and that, so I would put it higher than that, at least half you want the TV to go on all the time, that is fine, a billion pounds a year, because it is something that but lots of loads can be managed and I think that can we cannot possibly aVord to get wrong. We have to be done remotely. make it an absolute national priority, whether that “national” is UK or Wales. Q72 Mr Crabb: You say in conclusion that: “ . . . more resources must be made available for the Q75 Mr Crabb: Half a billion pounds? technical and social development of renewable Mr Cass: At least per year. It might cost more energy sources”. What do you mean by the “social than that. development” of renewable energy resources? Could you explain that phrase? Q76 Mr Crabb: Out of a total government budget of Mr Cass: I think that gets back to a governmental- £580 billion, it is nothing. sized job now of making sure that everybody Mr Harper: Yes. It does not all have to come from understands climate change and the impacts it is the Government, it is not just the Government that going to have on them and, therefore, is in the right hands this thing out. Just thinking in terms of the frame of mind to accept the kinds of measures that GDP of Wales, which is somewhat under £40 billion, are going to be necessary in order to solve this huge or something like that, Stern is talking about 1% or problem that we have.The other side of it, I suppose, something like that. would be when you re-localise your power and energy grids then it must be done in a way that Q77 Mr Crabb: Your half a billion figure was just benefits those local communities as well so they see for Wales? themselves not only as part of the problem but can Mr Cass: Just for Wales, yes. On a UK-wide scale it see the solutions in their local area. moves up to significantly more money, well over £10 Mr Harper: We might well be heading for a more billion a year. localised future. There has been this long process of globalisation and that has largely been driven by Q78 Mr Jones: Could we turn to microgeneration, very cheap fossil fuels, particularly cheap oil, andthe please, and you will recall we asked the departmental likelihood is, I think pretty well everybody is agreed, witnesses about the constraints on the development oil is going to become quite expensive one way or of microgeneration. You have referred in your paper another and that will force a re-localisation. It will to the advantages of renewable energy working on a just mean it will be more expensive to move stuV national, regional, community and domestic scale. around, so there will be a presumption on generating Could we deal with the domestic scale first. My it and using it locally as far as possible. We like that understanding from earlier answers you gave is that and we think that is really good. If people had a you are somewhat sceptical as to the benefit of better sense of their own area, did things for each microgeneration on existing homes, is that correct other and were more hands-on, the internal links in and really you felt that the place for microgeneration an area were stronger than the links between that was in new build? Is that a fair summary of what area and the outside world rather than the other way you said? around, we think that makes for healthy local Mr Cass: I think we may have given a slightly wrong communities, so we really like that idea. Lots of impression there. What we believe is that if you have things have happened in our area to try and promote a list of priorities, there is some lower hanging fruit Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 15
16 January 2007 Mr Peter Harper and Mr James Cass and higher hanging fruit and what we need to do is but I think we need to bring them on quicker and to pick oV the low hanging fruit to get our 4 to 5% stronger, send stronger signals and tell them when reductions as soon as possible, whilst at the same these new standards are going to come in so that the time looking into what is going to make the much industry can gear up. There is something else that is more diYcult reductions later on. Retrofitting things very important which is research has shown new like really good, solid insulation to existing houses buildings are not performing according to the that are going to be around potentially for hundreds building regulations. When they are checked out it is of years is very important, but then on the domestic found that nobody has inspected them, nobody has scale there are certain technologies which would checked them out, ostensibly they have been built to really eat into the energy budget. There is plenty of the regulation standards but they are not performing energy around locally to be harvested and probably at that standard, so we need a much tougher the best kinds of technology to start oV with would inspectorate in order to make sure these things are be solar heating technologies on people’s roofs. happening. It is again something that only the After that, it gets a little bit more debatable but, as Government can do, but we have really got to have a part of an engagement programme, if we can bring bigger corps of inspectors to make sure this happens. people’s power consumption right down, then technologies, like solar technologies, for creating electricity start becoming more significant. If, as part Q82 Mr Jones: Of course, there has been a fairly of a national engagement programme, the recent relaxation of the inspection regime, has Government was putting a lot of money behind solar there not? technologies then what it would do is it would give Mr Harper: That is not joined-up government. If the kinds of scales that industry needs in order to you say one thing you should follow it up. bring the prices down from the quite expensive prices at the moment to the kinds of prices that Q83 Mr Jones: You expressed some reservations would be far more easily dealt with. about micro-wind power in your note, which came as a surprise to me, and, according to newspaper Q79 Mr Jones: Do you regard the price at the reports, these things are flying oV the shelves of B&Q moment as being prohibitive, for example, for the at the moment. Do you discount micro-turbines? installation of solar or PV panels? Which micro-source of generation would you say is Mr Cass: I think it depends on which parts of the the most appropriate for the average householder? population. For the 5 to 10% of the population Mr Harper: I would say that wind is at the bottom which is willing to take personal responsibility when of the pile. Under certain special circumstances, yes, they see a problem, then they are possibly willing to it is okay but, generally speaking, any kind of pay up to £5,000 to put solar water heating on to townscape, any kind of structures, trees or buildings, their roofs and they baulk a bit more when it comes just break up the flow of the wind, so the amount of to paying the £10,000 to £20,000 to put solar PV on energy you have got left for generating is very small. to their roofs, so it definitely does make a diVerence People have been measuring and found the output of and this is where the Government, on a national the wind machine is only a few% of its potential. It scale, can start making a real diVerence. There are does something, but it is just a lot of money for very huge amounts of energy out there to be harvested little eVect. If you want to generate electricity, it has and at the moment we are doing it very centrally got to be photovoltaics really, I think, at this stage, using fossil fuels from increasingly long distances even though on paper it looks much more expensive. away. Q84 Mr Jones: It is still not very developed. Q80 Mr Jones: What can the Government do to Mr Harper: Yes. What do we do? We know it is very make that diVerence? You say they could make a expensive and the payback time is very long and so diVerence. you would say, “All right, let’s go for lower hanging Mr Cass: I think as part of the commitment if we set fruit and not do that”, but if the market is not out a programme that says that there would be stimulated the price will not come down, so I think retrofit to existing houses as well as new houses, but this is another role for Government to think ahead over a timescale that allows the necessary R&D to to try to create markets, encourage people and happen and for industry to scale up to create the new encourage rich people to do it—(you would not technologies that we need for the new environmental century, that would be the most important thing that want poor people to be spending this kind of money, there are much lower hanging bits of fruit that they Government could do as far as industry is V concerned, stimulate the market and bring prices could have)—especially ones who like to show o a down. bit, if a new roof has got to go on, why not, if you have got the money, do it, great, bring the market forward. Q81 Mr Jones: In terms of new build, do you think that the planning process could be used here? Mr Harper: The strongest thing is the building Q85 Mr Jones: Could we turn to community-scale regulations and, as far as the industry is concerned, microgeneration. Which renewable initiatives would that is very important because the manufacturers you say are best suited to community level generate products that just comply with the building microgeneration and what is the scale of their regulations and so they will just build to that level, likely benefits? Page Type [E] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Ev 16 Welsh Affairs: Evidence
16 January 2007 Mr Peter Harper and Mr James Cass
Mr Cass: Similarly to the domestic scale, the two situation in the late 1930s, everybody vaguely knew types of solar technologies would be useful. You can that things could change very rapidly, but nobody then move on to log, pellet or woodchip generation wanted to change and suddenly the moment when for heat to community scale, but then probably the the Nazis invaded Poland, then everybody said, most significant area that could be developed would “Okay, there is a war on, now the rules are diVerent, be community wind power. If all these people who we accept that, and when the war is over it can all would like to put a micro-wind power generator on come back again”. It is a rather similar thing, that their house were to get together and produce a people will say, “All right, we do not want these community-scale wind turbine instead, the amounts horrible things all over the countryside, but there is of energy they would generate would be far greater, a war on, that is fine, we will do that, we will have so that is very important. The other kinds of biofuels all over the countryside”, it will look technologies are the new combined heat and power completely diVerent but then we have to get through technologies which are being developed at the this diYcult process. I think the Government can moment and that is a technology that we are putting help a lot there in setting the tone and saying to in very soon at the centre in order to help provide the everybody, “Look, this is the way it is, do not try and energy needed for the WISE project, which was duck it”. being discussed earlier. As to the scale of diVerence Mr Cass: Of course, the other part of the equation is that they would make, I defer to Peter. that we need to have the skilled professional Mr Harper: It depends what kind of level you are technicians in order to design and install these talking about when you are talking about community-level machines rather than the larger, communities, but certainly district heating systems huge regional-level machines that have been could be very advantageous, especially if they are available and creating our power before now. That combined with combined heat and power and, of is where an investment programme in places like the course, if they are run on biofuels then that is terrific, WISE project and other projects like that around the you are winning all round. You might even use some UK would make a really big diVerence. Recently, of that electricity to power heat pumps at ground CAT has found itself responding quite often to grant source or, if there is a local river, water source heat programmes. There was money that was made pumps that you could use. Of course, every case is available to householders to have solar water V di erent and you have to sit down and do the sums technologies put onto their roofs, but what they properly, but lots of these show a lot of promise but found was that although the householders wanted to they will only work usually at a reasonable scale. put these on their roofs and there were plumbers out there who wanted to do it, there were structural Q86 Mr Jones: What barriers do you see to the problems with that. For instance, plumbers are not adoption of community-scale projects? used to going on roofs for the most part; they are Mr Harper: They are just as much social as financial, used to going under sinks, behind baths and below but I think once you have got a few successful ones floorboards. Certainly their professional indemnity going then you will start to see movement. A good insurance would not cover them either. That is example in our area is the role of the renewable where places like the WISE project, or CAT in energy company. We have set up our own company general with our adult education programme, can in there, it has got about 200 members, people put really make a diVerence because very quickly we money into the pot and we buy big second-hand were able to design a solar water heating course for windmills. We get planning permission, we get them professionals that allowed them to come, learn up, we do all the engineering ourselves and so we are about the new technologies and diVerent types of the developers and the owners. It is our electricity roof tiles, how to drill through them and how to be and we sell it to the grid and we get money for a roofer as well as a plumber in order to put solar electricity and we get ROCs and so on, it is all ours panels onto a roof. That has been one of the most and we have done it. The investment is really pretty popular courses which we have run. It has grown cheap and we get far, far more electricity out of that from being run once five years ago to being run five than out of 200 tiny wind machines on roofs. or six times a year now and it is oversubscribed. There is that kind of need for skilled professionals to Q87 Mr Jones: What could the Government do to be trained. The other part of the need is to train encourage projects of that sort? people at all levels, whether they are skilled Mr Harper: I suppose there are already lots of grants professionals or at degree level orMSc level and then and sweeteners and things like that going on, there on to PhD level to look into the really finer aspects could be more of that, but of course in terms of of how we are going to make these enormous planning I think there is a public education process changes and weave them into the fabric of our going on with respect not just to windmills, society. That is where something like the WISE windmills are the most obvious example, but there project and other projects like it would come in as might be lots of quite big visual changes that will well. We run an MSc project in conjunction with the take place in the country if we really were to go University of East London. It started many years forward with this big 4 to 5% reduction. There would ago at the University of East London and it had be lots of changes and people do not like that very between 10 and 12 students doing the course year on often, they just do not like change at all, but year for a number of years, but then they decided to somehow we have got to have the public debate. It is make a change, to bring the course up to CAT and almost as if there is a war on. It is a bit like the teach architecture and advanced energy studies in a Page Type [O] 12-12-07 19:32:07 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG1
Welsh Affairs: Evidence Ev 17
16 January 2007 Mr Peter Harper and Mr James Cass setting that embodied all of the principles that were supporters have been fantastic with the amounts of being taught on the course and that has made an money that they have provided for the project, but absolutely enormous diVerence. It has gone from there is still this £1 million gap and the UK being 10 to 12 students up to over 350 students now Government would be the obvious contributor. on the course. That, of course, for us has meant that we have had a massive influx of people wanting to do Q91 Albert Owen: We raised it in evidence in the adult courses. In the early days, we were very much previous session with the Minister, the Minister’s orientated towards the visitor centre and engaging a predecessor. What are the aims and objectives, for large number of people in a relatively small way; the record, of the Institute? these days the whole way that the public thinks Mr Cass: First of all, all these people who now want about these things has turned around and nobody to know how to be environmental, whether it is solar asks any more, “Why should we be plumbers or doing things at degree level, MSc level environmental?”, everybody asks, “How can we or PhD level, what it will allow us to do is to get at be?” That is our experience anyway and it has meant least 1,300 green champions through CAT’s doors that there is a massive growth in our courses every year, people who will then be able to go out programme and we need to be able to service that into their communities and act as catalysts of need and that is why we have got this big expansion, enthusiasm within those communities and create the Wales Institute for Sustainable Education. That that essential number of people that is necessary kind of thing, the professionals to make sure that the within any community, company or department of building regulations are being adhered to, the work in order to create the changes that are plumbers, the solar electrical technicians as well and necessary to get people to think about things from a the MSc courses are needed. sustainable development perspective.
Q88 Albert Owen: You mentioned the Wales Q92 Chairman: I think you have anticipated all the Institute of Sustainable Education, the WISE other questions we were due to ask you, including project. You will have heard the previous evidence the very last one which I was going to ask about from the Department of Trade and Industry. Before green champions. It just occurs to me finally, you I come to that specific question, the Committee have close proximity to that great educational visited you in April. How is the construction of the institution, Coleg Harlech which is very near to you. project going, and what is the schedule, subject to Do you have any relationship with it or any the finance, to have it ready for completion? partnership with it, because it has served the people Mr Cass: Yes, you visited in April. Since then we of Wales and the adults of Wales for a very long have become a huge building site. In June, the turf time? was being cut for the first time and now the WISE Mr Cass: It has struck us as a little absurd for quite project is going ahead, all the foundations have been some time that the University of East London is the laid down now and we are expecting the timber university which we have a relationship with. We frame to arrive in the next couple of months, but the would be delighted though to have relationships with all of our local universities and all of our local huge and ongoing worry that we have is it is a £6.2 million project and we have raised just over £5 colleges, but what is holding us back at the moment million so far in order to complete it. We are relying is sheer space. For those people who have been to CAT, this week is MSc week and suddenly you have on the increased public awareness of the project in got 150 students up at the Centre and we literally the next year to 15 months, which is the rest of the have not got the space to be able to run the lectures, construction period, in order to cover that shortfall. many lectures have to be run two and three times, but we would be absolutely delighted to be able to Q89 Albert Owen: Could you deal specifically with service the needs of all our local universities. There your applications to the DTI. Have you made a have been contacts made with local universities and formal application? a number of local universities are now interested in Mr Cass: No. I was delighted to hear they were working with us, but what we need to have is the expecting to hear from us and I will certainly be on space resources in order to be able to do that. the phone to them tomorrow, I would expect. In Chairman: Coleg Harlech, of course, is not a relation to the grants that they talked about, we are university, it is the adult residential college and it talking about a £6.2 million project and the support occurred to me that you seemed to have very similar that we have had so far has been great from all objectives in serving the adult population. To pursue sectors but with the notable exception of the UK that one final point, you may wish to consider Government, so the ministries Defra, DTI. developing a relationship with the adult advocacy body in Wales, which is NIACE Dysgu Cymru. Q90 Albert Owen: You have received it from the Thank you very much for your oral and written devolved administration, the Welsh Assembly? evidence. Without wishing to be too committed to Mr Cass: Yes, the Welsh Assembly Government has you, we are very concerned about your work and we recognised the value of the project and has invested wish you well in your specific application to the DTI in it, but there is Lottery funding in there, European and, more generally, and we hope your work will funding, some trust funding and our individual prosper. Thank you very much. Page Type [SE] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 18 Welsh Affairs: Evidence
Tuesday 23 January 2007
Members present
Dr Hywel Francis, in the Chair
David T C Davies Mr David Jones Nia GriYth Mr Martyn Jones Mrs Siaˆn C James Albert Owen
Witnesses: Mr Nigel Hughes, Chairman, Opencast Coal Committee of Wales, Mr Clem Llewelyn, Secretary, Opencast Coal Committee of Wales, Mr Les Watkin, Treasurer, Opencast Coal Committee of Wales and Mr Gareth Jones, Senior Regional Industrial Organiser, TGWU, gave evidence.
Chairman: Good morning. It is the intention of the Q94 Chairman: Thank you for the memorandum, Welsh AVairs Committee this morning to pay Transport and General Workers and the Opencast tribute to the late Peter Clarke, the first Children’s Coal Committee of Wales. In your memorandum, Commissioner for Wales, and, indeed, the First the Transport and General Workers states that Children’s Commissioner in the United Kingdom, “security of supply, security against the volatility of who gave evidence several times to this Committee, freight rates and exchange rates, and a reliance on by holding a minute’s silence in his memory. [Silence limited port capacity”, those are major issues for was observed for one minute] This is the second you. Can you provide the Committee with more session of the follow-up inquiry into energy in detail of these perceived advantages? Wales. As I explained last week in the first session, Mr Jones: We believe that indigenous coal primarily V this is being undertaken for two reasons: first of all, o ers security of supply as opposed to imported the publication of the Stern Report and the coal. I cannot give any detail on freight rates or Government’s response to it, particularly in relation exchange rates but that obviously has an impact— to climate change, is something that we wanted to exchange rates in particular—on the price of revisit. Secondly, whilst we took some evidence in imported coal. the main inquiry on coal, we felt that it was important to recognise the importance of getting Q95 Chairman: In your memorandum you identify more detailed evidence on surface mining and also several obstacles to the further successful on deep mining. For the record, as I indicated last development of the opencast coal industry; for example, increases in the duty of oV-road diesel. week, I wish to declare that I was associated with Other than planning issues, which clearly in your some of my constituents in opposition to a planning evidence and in other evidence is very important, application at Park Slip Opencast, an application which we will come to shortly, what more can you which has now been withdrawn. I also wish to tell the Committee about the obstacles which you declare that I was the oYcial historian of the have identified for the potential development of National Union of Mineworkers (South Wales opencast? Area) in the 1970s and in the 1980s I was Chair of the Mr Jones: I have made reference to the duty on Wales Congress in Support of Mining Communities. diesel. I have also indicated that it amounts to what Does any other member wish to declare anything? we perceive to be a double taxation, in eVect, but the Mr Martyn Jones: Chairman, I have been a member primary obstacle as we see it is planning. I am of the Transport and General Workers’ Union advised that the powers that we are considering since 1973. impose a presumption against opencast as it currently exists in Scotland. We believe that was illogical and, indeed, disadvantages coal as opposed Q93 Chairman: Welcome, this morning. For the to other sources of energy. We primarily view record could I ask you to introduce yourselves, planning issues as the main obstacle. please. Mr Jones: My name is Gareth Jones. I am a senior Q96 Mr Martyn Jones: Celtic Energy’s memorandum regional industrial organiser with the Transport and to the Committee maintains that “coal mining is still General Workers’ Union based in Swansea. a vital part of the South Wales economy . . . there are Mr Hughes: My name is Nigel Hughes. I am still at least 1,000 people at work directly in the coal chairman of the Opencast Coal Committee of Wales industry, with perhaps an equal number indirectly and also the branch secretary of the Margam site employed. These jobs are well paid and skilled. Their with the T&G. loss to any community would be dramatic”. Would Mr Watkin: My name is Les Watkin. I am the you like to comment on the importance of the coal treasurer of Opencast Coal Committee of Wales. I industry in terms of employment throughout Wales am also a chairman of Nant Helen opencast coal and its contribution to the wider economy? site. Mr Jones: The information that we have, and this Mr Llewelyn: Clem Llewelyn, secretary of the was made available at the public inquiry for the Opencast Coal Committee of Wales, senior steward Ffos-y-fran application, was that in the region some and secretary of the Selar Opencast site. 3,000 jobs are associated with coal production and, Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 19
23 January 2007 Mr Nigel Hughes, Mr Clem Llewelyn, Mr Les Watkin and Mr Gareth Jones indeed, Aberthaw Power Station as well. That was a for brand new housing estates because we might significant number of people employed directly and want to get that coal out later and we might find indirectly as a result of coal extraction in Wales. ourselves having put up brand new houses right next Mr Hughes: It has a major role to play. We have a door to an ideal opencast site? Are we creating a Welsh plant on our doorstep currently being fired by problem for ourselves? foreign imports of coal. We believe that the Welsh Mr Hughes: What we find is, even though we have coalfield has a major role to play in that. As Gareth these sites currently operating, people moving into has suggested, that is a big obstacle for us. The the area, even though they have paid for land demand is there but, when it comes to planning searches and followed the right procedures when applications, we seem to be spending millions of they bought their property, have never been aware of pounds on applications before we can dig a the possibility of a site being extended or the lifespan particular tent pole out of the ground, so that is a of the site. That never comes to light, even though major concern for us. We can only mine coal where the mineral is there. The other thing is in relation to it is. A lot of these communities in Wales have been health screening. The company we work for is Celtic built around the coalfield through generations. Energy and because of the allegations that have been Mr Llewelyn: Most is around our area—Nigel in made over many, many years on health, that is an Margam, Les in Nant Helen, myself working in issue I take very seriously. We have introduced a Selar at the top end of the valley—and, as we have health screening programme on all Celtic Energy found in the past, since the demise of the mines there sites and all employees and the subcontractors is no other employment coming up to the Valleys; in coming in are screened. I have been involved in the fact, there is nothing further than CardiV. Although industry for over 36 years. I have worked in opencast we are grateful for jobs coming into that area, we and I have worked in deep mining and I can honestly have to look after the employment in the Valleys. say that I am a non-smoker. I have a health Yes, rightly so it is a well-paid job. It is not very screening programme every two years with the favourable to a lot of people but it pays and it not company I work with now and I have yet to see any only involves, as Gareth rightly said, men actually dust form in my lungs. I am quite willing for this working on the site, but it involves the lorries, the Committee to look at any of that any time they want trains with Aberthaw Power Station which is unique to. That is all I have done throughout my working to us and it is essential that we keep jobs in the life. southwest Wales area. Mr Hughes: We have just secured the East Pit Q99 Mr Martyn Jones: Going back to Celtic application at the top of the Amman Valley and for Energy’s memorandum, they refer to estimates that the 200 vacancies that have come out of that we coal’s contribution to energy generation: “could fall currently have in the region of 2,000 application between 15 and 20% over the next 10 to 15 years”. forms. They are well-paid jobs. We would all like to V Y They say that: “its e ect on jobs and the local work for the call centres or in o ce work but, economy will be major and should not be unfortunately, in the areas that we are from mining underestimated”. Do you agree with this? is a big part of these communities, very deep mines Mr Hughes: Yes. or opencast. For every one employed on these sites there are two employed outside, or possibly three involved in processing and the whole community Q100 Mr Martyn Jones: Moving on to the revolves around these areas. Transport and General Workers’ memorandum which notes that “imported coal means exported jobs” and goes on to say that “everything must be Q97 Mr Martyn Jones: Is there any potential for jobs done to . . . minimise the amount of imported coal in my part of Wales, northeast Wales? used in electricity generation”, is the amount of Mr Watkin: I live in Ystradgynlais which is the top imported coal used in electricity generation in the end of the Swansea Valley. There is a little village UK increasing or decreasing, and what is the direct called Ystalyfera. If you ever travel to Ystalyfera all eVect on levels of employment in Welsh mining? businesses are boarded up, even the High Street in Mr Jones: My understanding is that the levels are Swansea is boarded up through lack of jobs in the increasing. The direct eVect I do not know, but what Valleys. I work at Nant Helen and currently there I do know is that there are millions of tonnes of coal, are 70 well paid jobs at Nant Helen. The coal we not just in Wales, but available to be mined in the extract cannot be extracted by deep mine because of rest of the UK, and as long as the planning the geological conditions and coal outcrops. requirements are met then we should be exploiting those resources and maximising the opportunities Q98 Nia GriYth: The environmental health oYcer in for employment in the South Wales coalfield. my local authority has explained to me that if an Mr Hughes: The diVerence between our extraction industry wants to locate near to a housing estate of coal and foreign extraction of coal is that ours is then he will write a report on the potential health priced very, very heavily and the simple reason is the eVects on the housing estate, but he is not notified health and safety aspect. We have an excellent health when people want to put housing in an industrial and safety record and that comes with a price. That area. For example, a new estate is built up and price is transformed onto the product that we suddenly they complain about the noise. Do you produce. If you look at the coal coming into this think there is a case for people thinking is this good country by Third World methods there is no health coal under here before they give planning permission and safety, it is mined by children, accident rates are Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 20 Welsh Affairs: Evidence
23 January 2007 Mr Nigel Hughes, Mr Clem Llewelyn, Mr Les Watkin and Mr Gareth Jones through the roof; you have only got to go on the whether it be opencast or deep mine, there is a internet to see that. I am the health and safety oYcer demand for the product. Here we are through many, for South Wales. It is a job I take very, very many years of desecration from the Tories bringing seriously, but it comes with a price and that price is down the coal industry, and now gradually what we transferred onto the product that we produce. are seeing is a big turnaround of indigenous coal, Mr Llewelyn: We feel strongly about that and have and not only in major plants like Aberthaw; we are felt over the years that there is coal in this country. now seeing local communities, because of the price We could be self-suYcient for our own power station going on gas and oil, reverting back to indigenous for the next 300 or 400 years. There is scope not only coal. The evidence is there. for opencast, but we strongly feel that there is scope for all the mining industry to carry on so that we can Y Q103 Mrs James: You have talked about the new be self-su cient. We have already had warnings in skills and the new training opportunities. I come what happened last year with the gas coming from from an area where there was an opencast site and I Russia. I work in production and Aberthaw asked have lived with an opencast site and family members the other day if we could produce more coal because have worked there. What about the men who leave 800,000 tonnes of Russian coal had not turned up the industry for whatever reason—maybe when a because they refused to send it because they were site closes and another site opens elsewhere—are selling gas at a better rate. This is what we fear will there opportunities for retraining for them? happen one day, that once you get rid of the Mr Llewelyn: We are the forgotten people. indigenous industry then we will definitely be held to Whenever you see somebody close a factory or the ransom on our energy. other day when the call centre was closed in Pembroke, we as opencast workers do not receive Q101 Mrs James: I want to turn to skills and help. We are self-suYcient, we always have been; we training. Energybuild’s memorandum refers to a: go and look for jobs elsewhere and that is why we “dearth of people with the required skills to want to maintain it. It is my fortieth year in the immediately take up employment underground and industry this year and it is nice to know that it could on the surface”. Do you agree with this assessment? have a future for the younger people coming in after Mr Jones: I know there are representatives here us. The work is there for us. The work is in the today from Miller Argent who have applied to Valleys to keep the Valleys and what we are looking extract coal at Ffos-y-fran and to say that people do for is that continuation. That is why we were formed not have the skills in South Wales is an insult to the in the Seventies to fight for the continuation of communities in South Wales. I know that both employment because in those days we were going Celtic Energy, as the current main employer, and from contract to contract. We have stabilised that. Miller Argent are totally committed to training and We have fought hard over the years and we are providing people with the opportunities to enhance getting now to where lads have self-esteem; that they what skills they already have and, indeed, to acquire know for a fact instead of working for three or four new skills. That is a commitment from both years they have got a better future and this is what employers and I am sure that would go for the deep we are trying to achieve. Not only that, but we can mines as well. see the danger that is going ahead of us that one day Mr Hughes: What we have done at Celtic Energy when we switch that light on it is not going to be through the union at all sites is we have managed to there and we will have had it from this country. get the company to take on apprentices. The schemes are excellent. All locations now have these Q104 Mr David Jones: Mr Jones, I would like to turn apprenticeships for fitters, electricians and welders; to health and safety. In your memo you told the all these skills are being regenerated around these Committee that in the seven years of your sites. The site I currently work on at Margam has association with the industry you have not three apprentices all coming from the local area. It is encountered a single opencast worker who has excellent training; only the best. suVered a respiratory illness as a result of working in an opencast mine. However, the Committee has had Q102 Mrs James: You have already mentioned its attention drawn to a study carried out by the Miller Argent. In their response to the DTI’s Energy CardiV Institute of Society, Health and Ethics on the Review they said: “If the coal industry is forced into proposed extension to the Margam opencast mine, a decline in the short term and then expected to which I am sure you are familiar with, and in that suddenly come into production five to 10 years later study there is a conclusion that, “there is suYcient . . . it will be too late. The skilled workforce and uncertainty regarding the negative health impacts to expertise of the coal industry will be lost with little apply the “precautionary principle” which would hope of getting it back.” They believe that there not allow opencast mining to proceed in . . . close should be a “critical mass” that we maintain proximity to residential areas”. That is a fairly wide otherwise the industry could fail. What is your view? diVerence of opinion. What have you got to say to Mr Jones: My view would coincide with that. that conclusion from the CardiV Institute? Mr Hughes: There is a demand for the product we Mr Jones: I disagree with their view. Obviously the are producing and, as I said, we have a price on that issue of dust/noise is a material consideration when because we adhere by strict legislation in relation to planning applications are submitted. Those were health and safety. That is passed on to the product. always considered in the two public inquiries that I What we are finding is with the Welsh coalfield, have been involved in—the East Pit extension and Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 21
23 January 2007 Mr Nigel Hughes, Mr Clem Llewelyn, Mr Les Watkin and Mr Gareth Jones the Ffos-y-fran Land Reclamation Scheme—that Q108 Albert Owen: You mentioned, Mr Jones, a was given consideration and the public inquiry came short time ago about the planning system and you out in favour of both applications after considering have identified in your submission that this is: “the the health impact. That report I understand was greatest impediment to opencast coal production”. commissioned by the Anti Opencast Lobby—they Is the problem one of just delays and timescale, or is have the right to do that and that is not a problem— it of restrictions and controls? There is a slight but there is an equal amount of, if not more, contradiction in what we are hearing. You want a evidence suggesting that there are no respiratory strict planning system and a rigorous one, but then concerns associated with opencast mining. you say there should not be these controls. Mr Jones: First of all, I do not think that there should be a presumption against it but I know that Q105 Mr David Jones: You are very critical in your V it is being considered. You need to speak to some of memo also of the extension of bu er zones from 200 the operators within the industry—Miller Argent, in metres. Do you not think those are applied for the particular, and I do not think Celtic Energy are here very good reason that opencast mining is a dirty today—but they will be able to answer what eVect noisy activity? V the delays have because there must be an economic Mr Jones: I disagree. Bu er zones can always be eVect, I would have thought. Certainly it is a considered. I am not against buVer zones as they V frustration for us because when we have the stand, but to have mandatory bu er zones set unemployment rates that we have in Merthyr, for randomly by any authority without considering the example, and the Ffos-y-fran Land Reclamation implications of that particular site is wrong. Each Scheme has the opportunity to employ up to 600 application should be considered on its merits and V people in an area that desperately needs those jobs, the bu er zone, if appropriate, applied to that then we are frustrated by that. particular application. That is the point I am trying to make. Q109 Albert Owen: I understand the economic arguments; everybody has made those in their Q106 Mr David Jones: Do you think it would be submissions, all I am saying is, is it the length of time reasonable for residents of neighbouring residential whereby companies get fed up and move on because developments to be very concerned about proposals of the planning process or is it the actual restrictions for new opencast mining in their vicinity in terms of that everybody has to adhere to? noise, dust and general pollution? Mr Jones: I think the restrictions are appropriate. Mr Jones: Yes, and those are the very issues that are Each application has certain criteria. Inevitably at raised at planning, at public inquiries and are the end of any planning application or inquiry, and considered by the relevant authorities when our experience is that it inevitably goes to public application is granted or otherwise. They are inquiry, there is inevitability about any application concerned with visual impact, noise, dust concerns associated with opencast going to a public inquiry. and they are concerns that should be taken seriously. That is the legal situation that something has to be We totally support the rigorous planning procedures done, we understand that, but I cannot give you the that apply not just to opencast coal but all other answer on the impact that it has financially. We applications as well. It is right that employers are think that the restrictions that are applied are proper accountable and should be made accountable so the because it holds employers to account and we can process is a rigorous one and it should be a rigorous only support that. one. I think having set buVer zones, as an example, is wrong. I think each application should be considered on its merits. Q110 Albert Owen: We will be asking the employers. Do you have any other comments on the planning system? Q107 Mr David Jones: Could we turn to a Mr Llewelyn: You have to adhere to planning but, memorandum received from Miller Argent which as workers, it is stretched and what we are fearful is notes that: “opencast mining sites can be dangerous that there will be that gap and we get unemployment places to work and visit . . . therefore safety is of and it takes then a year, two years, three years to go paramount importance”. You said in your memo to through the system and that means that some of our the Committee that the health and safety, both of members—this is what we try to alleviate—are your members and the neighbouring community, unemployed, which is vastly devastating and is a was your principal concern. To what extent do you great loss to the area. promote health and safety both at and in the vicinity of opencast sites? Mr Jones: Obviously as employers they have Q111 Albert Owen: It is the length of time. statutory obligations in relation to health and safety. Mr Llewelyn: Yes, there is that. In my organisation 90% of our work is health and Mr Hughes: The site I am on has just applied for an safety related. We are there to promote health and application to extend. To give you some sort of an safety in the workplace and to ensure that our example, we waited over two years and by the time members are put at minimal risk when they attend the company approached the environmental people work. That includes exposure to noise, exposure to to carry out the environmental study on the dust and all the other inherent dangers associated application two years went by before we actually got with the construction industry as well. a site. How can a company operate and look after its Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 22 Welsh Affairs: Evidence
23 January 2007 Mr Nigel Hughes, Mr Clem Llewelyn, Mr Les Watkin and Mr Gareth Jones employees and its order books for planning for the Q114 Mrs James: How many sites have you future? It is a crazy situation. It just drags on and on worked at? and on. Mr Hughes: I have worked with all the major contractors. Over 36 years I have probably worked with five. Q112 Albert Owen: Is not the onus on the employer Mr Watkin: I have been in the industry since the to get consultants to do it well in advance? early Seventies. This is my third current site. The first Mr Hughes: Yes, but, like I say—I do not want to site was Maesgwynne at the top of Glynneath bank. pick out each individual—we have been involved as There I progressed to East Pit where I spent a good V a committeeon several applications on di erent sites number of years and at present I am at Nant Helen within South Wales and what we are finding in the where I have been for quite a number of years. process is this dragging on and dragging on and it Mr Llewelyn: I started oV in Maesgwynne in 1967, does not seem to be coming to an end. then I went to Tairgwaith, then I went back to Mr Llewelyn: Before the public inquiry we fought Maesgwynne, then I went to Drym, then up to hard for the extension in East Pit. After it went to the Maesgwynne, then to Nant Helen. I am now planning oYcer, et cetera, it was passed. Then, as the currently based at Selar, but I cover all the three Assembly called it back in that was another 12-14 sites. months before it went to a public inquiry and this is what we are seeing, that our lads are unemployed for V another 12-14 months and further. I am sure that Q115 Mrs James: Quite a lot of di erent jobs. Miller Argent will give evidence that there has been Mr Llewelyn: I am an old man now. I have been a lot of suVering over this and, yes, we have opposed around a long time. these companies in the past but they should start Mr Hughes: What we did as a union, before earlier so that when one ends they are ready, but then privatisation, was over many years we all worked for something always crops up which delays it and they contractors and when a contract ended we did not go back and it goes from one to the other, further have the opportunity to move on to another site; V out. Because we have a Welsh Assembly that was there was a di erent contractor there. What added on and they can recall it and call it in and it privatisation has brought to the coalfield where ends up in a public inquiry. What we try to explain Celtic Energy is concerned is if a site is on run-down to people, and we have got the company to do this, and there are applications coming available on other is the money they spend, which is a lot of money, to sites we do have this flexibility and this tendency to go to a public inquiry we hand them to put into a move men to try and secure a longer employment. fund. Like with Glynneath, they did not go to a From the trade union perspective, we have more or less covered every avenue we possibly can to keep public inquiry; there was a million pounds set up for our members in work and also bring in training the Glynneath community and that was what skills, as I touched on earlier, in relation to happened because they saved that on a public apprentices. I think over a period of time we have inquiry. done really well as a trade union. All sites are 100% union members. Health and safety and environment Q113 Mrs James: I wanted to ask a supplementary are a big part of that. question because in the question about skills and training you referred to this continuous moving on Q116 Chairman: Mr Llewelyn, you referred in your and you have just mentioned it again and I thought earlier evidence to opencast workers as the it might be helpful to the Committee if I asked each “forgotten people”. In your evidence you give the of you how many years you have been in the industry impression that you are a little besieged. Would you and how many sites you have worked at. characterise the Opencast Coal Committee of Wales Mr Hughes: I have been in the industry for 36 years. as a trade union, or as a campaigning organisation, I have worked in deep mine and opencast, I have or a lobbying organisation? The reason I ask that is worked on every aspect of the job starting from a we now have the DTI setting up a coal forum very young age, from underground progressing to bringing everyone together. To what extent does the opencast. I have worked at every level of the Committee try to build relationships with other opencast industry and I have seen major changes trades unions, with other organisations, to make the over many years, changes that Gareth rightly says case for coal? are for the good environmental-wise. You touched Mr Llewelyn: As I said earlier, we were formed in the upon noise. There are very strict restrictions Seventies and from the trade union we are self- regarding noise. What we are finding is that when the funded by our own members to fight for the company goes oV and buys certain equipment it has industry, to progress and to keep the industry to meet criteria in relation to noise levels. If it does growing. We have made inroads over many years, not meet certain criteria they do not purchase it. mainly through the Transport and General Every bit of kit on-site is looked at. Noise is a big Workers’ Union. We have touched on approaches in issue. Speaking as a family man, if I thought the the last few years because we do believe that there is industry that I have been involved in over 36 years room for all mining, but obviously we have not was doing any damage to any child’s health or any touched much with the NUM although we have person’s property, I would not be sitting down here made inroads. We have collieries now in Scotland defending it. that we liaise with and they are having similar Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 23
23 January 2007 Mr Nigel Hughes, Mr Clem Llewelyn, Mr Les Watkin and Mr Gareth Jones problems up there and we have tried to organise Mr Jones: Yes, as an organisation we think that we happenings in England where they are not as fully have led the debate in Wales in terms of energy. We organised as us in Wales. have had numerous conferences where we invite people from all walks of life in terms of the energy Q117 Chairman: Is there a Welsh coal forum? Is debate. BNFL have been invited to attend our there a body that brings together everyone where conferences as well as NUM members and coal they discuss the case for coal and how it can be producers as well, so we are in constant dialogue via developed? the good oYces of the Wales TUC as well. It must be Mr Hughes: We have attended two energy said that the Opencast Coal Committee, whilst they conferences over the last two years, ourselves with are T&G members, is an autonomous body. it is not the T&G, where they have brought in members from a T&G committee. coal, from nuclear, representatives all energy Mr Llewelyn: I also attend the energy forum generators, and we attend conferences in Leeds assembly. I have been twice to the St James’ Hotel every year where we bring in all the opencast sites with the First Minister and all other aspects of from Scotland, England and Wales to discuss what energy are to be found there. I do attend when problems they are getting, what problems we are they appear. getting, and some of them have been highlighted here today. As regards this Committee—Clem has Q119 Chairman: I recall about 30 years ago that touched upon it—yes, we are here to look after our there was a proposal for an energy union in Britain. members as a trade union, but this Committee is Is that being discussed currently? fully recognised by the Transport and General Mr Jones: The current discussion amongst the trades Workers’ Union and also we will lobby on behalf of unions is the merger between us and Amicus. We are all members to try and secure as much work as we the two dominant unions within the energy industry possibly can. and that is including coal, nuclear and gas-fired power stations. If that is an energy union, then we Q118 Chairman: Perhaps this is a question I should will be that union. pose to Mr Jones really, that you are part of a wider Chairman: Can I thank you all for all the evidence trade union movement, you are part of the Wales you have given, for the openness and the frankness TUC, you must have relationships beyond of your evidence, both written and oral. If you feel particular companies. Do you have a dialogue? Do that there is any other matter that you wish to raise you think about having a forum in Wales that brings with us, we would be very pleased to receive further together all of the interested parties? written memoranda. Thank you very much.
Witnesses: Mr Rhydian Davies, Director, Energybuild, Mr Richard Nugent, Director, Energybuild, Mr James Poyner, Director, Miller Mining and Director of Miller Argent (South Wales) Limited, Mr Gerwyn Llewellyn Williams, Chairman, Unity Power Plc, and Mr John Anthony, Co-Director, Unity Power Plc, gave evidence.
Q120 Chairman: Good morning. Could you please Mr Davies: From my own personal opinion, yes, I introduce yourselves? think he is right in his assumption there. However, Mr Davies: Rhydian Davies of Energybuild, what must be taken into account is training for running the Aberpergwm mine in the Neath Valley. youngsters to attract them into mining and keep Mr Nugent: Richard Nugent, Co-director with them going in mining because, as my colleague Rhydian for Energybuild, running the Aberpergwm mentioned earlier, it is not a short term training deep mine and some associated opencast. course in a mine—it is four years to train an Mr Poyner: James Poyner. I am a director electrician or a fitter to work underground—and responsible for the mining activities of the Miller although we have 45 men working with us Group Limited and I am also a director of the joint underground, we have five apprentices and they venture company Miller Argent (South Wales) who have been there for three years. That is what has to are the developers and owners of the Ffos-y-fran be taken into account and that was the point that my project in Merthyr Tydfil. colleague, Richard, was trying to point out under the Mr Williams: Gerwyn Williams, Chairman of Unity training and the Mines Rescue. Power Plc. Mr Anthony: John Anthony, director of Unity Power which is the owner of the Unity mine in the Q122 Chairman: We will come on to that in a Neath Valley. moment. Mr Nugent: I think the decision by RWE Npower to Q121 Chairman: I begin by asking you all a question opt into the Large Plant Combustion Directive has about the future prospects of the coal industry in given new lifeblood for coal in Wales on the basis Wales. The Secretary of State, the Right Hon Peter that most of the coal in Wales that we as operators Hain, said in the Western Mail on 4 January that, are working in is in the anthracite field as opposed “there is now a good future for coal mining, deep to steam coal. The station at Aberthaw is built and mining as well”. Do you agree with his assessment designed to burn Welsh coal. I am sure that for the future? ultimately the supply balance between imported and Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 24 Welsh Affairs: Evidence
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony indigenous is always going to be there, but there is that coal is suitable for, in this case, AberthawPower not a lot of that type of coal available in the 300 Station, but we cannot mine clean coal. The clean million tonnes market for coal. It is mainly steam coal is the way in which it is burnt. It is more to do coal and the indigenous reserve in Wales is suitable with the emissions standard than the feedstock. for that station. I think in light of RWE’s decision that should be supported by more directives to Y isolating areas of coal in Wales that can feed into Q124 Nia Gri th: Absolutely. That is why I said it that station. is the actual power stations. Mr Poyner: I would agree with what Richard has Mr Poyner: Yes, coal is coal, but not all coal is the just said. We have always believed that there is a same. In fact, we do engage with the power stations V future for coal in Wales. Whether it is a good future with regard to the di erent qualities of coal that we depends on continuity of access to the coal reserves are able to produce and together form the most and the market conditions, but certainly the way the economical and advantageous blend to fit within industry has developed, particularly in recent years emission constraints. and particularly as a result of RWE installing FGD at Aberthaw, then we also believe there is a good Q125 Nia GriYth: That is very much the question I future ahead of us. was going to ask which is about the advantages that Mr Williams: Yes, the Secretary of State is the South Wales coalfield has in oVering diversity absolutely correct as far as we are concerned. When of coal. we talk about coal in Wales, I do not think anybody Mr Poyner: Aberthaw Power Station, which is the really has a handle on the amount of coal that there biggest coal-fired power station in South Wales— is in Wales because the exploration previously there are only two coal-fired power stations—was carried out has been dependent on British Coal or specifically built to burn the type of coal with the small amounts of shallow exploration taken on by characteristics that can only be found in the South private companies since the privatisation of the Wales coalfield. The other coalfields within the industry. When we talk about coal in Wales I think United Kingdom cannot supply coal of a compliant we totally underestimate the resource there is in specification to be burnt in the Aberthaw Power Wales. There are huge resources of coal. A lot has Station. There is only the coal in the South Wales been said to be unmineable but that does not mean coalfield that can be provided to burn at a 100% that the energy cannot be extracted from that coal. compliant spec at Aberthaw. There is a good future for deep miningin the reserves we have already quantified and we think there is a major role for coal in sustainable development. Q126 Nia GriYth: When we were at Aberthaw we Underground mining can look after economic, were told that they would prefer to burn Welsh coal social and environmental aspects of sustainable than imported coal presumably for exactly the development. reasons you have outlined. Mr Poyner: Because it was built just to do that. Q123 Nia GriYth: Turning to a couple of technical questions, the responsibility for making power Q127 Nia GriYth: There are two questions then: stations cleaner with clean coal technology is why is it that they cannot get enough Welsh coal obviously primarily with the generators, but what and, secondly, would you like to make any comment discussions do you have as producers with the on the fact that, as we understand it, as a result of generators and is there likely to be any knock-on this inquiry last year the actual price now of Welsh eVect on the demand for particular types of coal? coal is actually competitive to that of imported coal? Mr Williams: We are in very frequent It is actually in a state where it would be less if it were communication with RWE, but as well as the not for certain artificial factors that you put in there existing generators we believe that there is a role for binding it to a certain price. modern stations to be built in South Wales. These Mr Poyner: I think historically the Welsh coalfields stations to comply with existing emissions legislation would have been able to supply all of Aberthaw’s do not have to be your ultramodern technology; they needs, but due to the advent of the Large can be standard proven technology, fluidised bed Combustion Plant Directive there are certain with good back end (as we call them) clean-up emissions that have, subsequent to the build of systems on them, so as well as talking with the Aberthaw, been introduced and the most significant existing RWE, the power station owners, we do of these is the sulphur content. The sulphur content believe there is a secondary role for the construction of the coal to be found in Wales is quite high of smaller stations strategically placed throughout compared with the sulphur content of imported coal South Wales and that is our interest. and because of that they really need a blend of Mr Nugent: As operators there is not a lot we can do. imported coal and indigenous coal in order to bring Coal is coal and as we take it out of the ground and the sulphur down. In terms of competitiveness, we put it through a beneficiation plant, it is fairly simple are now extremely competitive with the price of technology. I think the decisions that RWE have international coal; in fact we are cheaper, despite the taken, for instance, are led by government and fact of the very weak US dollar. International coal government through subsidy or enhanced grant aid is traded in US dollars and we are actually cheaper, or whatever. So we, as mining companies, mine coal, despite the very high exchange rate. Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 25
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony
Q128 Nia GriYth: Are there any wider markets that Mr Davies: My only point, really, is that if Aberthaw you are able to access because you can blend had not entered into FGD there, I do not suppose opencast coal with deep-mined coal? Are there any there would have been a lot of hope for coal in other markets you can access? Wales. That is my own personal opinion because I Mr Nugent: There are two big markets in Wales: one have supplied Aberthaw directly or indirectly since is the Aberthaw Power Station and the other is the 1987 in my own right. The diYculty has been long- potential for introducing coal into coke-making and term contracts with Aberthaw because they did not also into blast furnace injection in Port Talbot. know where they were seeing themselves going. Unfortunately, at the moment we are in talks with Mr Poyner: There is a very simple reason for that, if Y Corus but it is very di cult to get any answers I may interject. As I explained, Aberthaw was because of the pending takeover and, of course, I specifically built to burn the types of coal found in suppose the decisions on where Port Talbot is going the South Wales coalfield. The particular once that takeover is complete. There is a potentially characteristic that makes it diVerent from the other large market alongside Aberthaw. The rest of the coals to be found in the UK is the volatile content. markets in Wales are small industrial markets, et So, equally, the coals that are found in the South cetera, but the two major players as far as Welsh Wales coalfield are not compliant coals for the other anthracite is concerned, or Welsh low volt coal, is coal-fired power stations in the United Kingdom. certainly Aberthaw and Corus. To touch on the Therefore, if there is not the Welsh market there is value of coal, the bulk of coal coming into Aberthaw no future for the Welsh coal industry. Aberthaw is at the moment is coming from one or two mines in the main market. Russia and having worked down in Russia there are only two mines in the whole of the Kuznetsk Basin which has hundreds of millions of tonnes of Q131 Albert Owen: Can we move on to a more production. There are only two mines that have this balanced energy policy. The Government, for particular type of coal that Aberthaw can burn, obvious reasons, is looking at alternatives and emphasising the constraints on the design of the diversifying into renewable energy, and a number of station but, therefore, supporting the growth of the the memoranda that we have had touch on this. indigenous industry again. The indigenous industry died because when coal prices were flat investment Indeed, Miller Argent states there is a need for disappeared, jobs disappeared, mines closed and we diversification. What assessments have you made are now trying to bring some back into production; collectively, or as individual companies, about the we as a company, other companies as well, but that potential likely contribution of renewable sources to all takes time and training as well. It is the grant aid the future energy mix? schemes that have been applied to the Welsh Mr Nugent: I do not think we have had any joint industry and the UK industry that have certainly talks on that, other than what has been imposed on helped to galvanise the re-emergence of a Welsh coal us through various dictates from government, et industry and hopefully this will come over the next cetera. Currently, the mountain where we are two to three years. operating has been earmarked for wind farm Mr Poyner: I think it is important to emphasise that development. Ultimately, if you build enough long gone are the days when deep mines and surface windmills you could argue there is suYcient power mines were fighting against each other. We no longer generated from them to sustain a major part of the see each other as competitors and, in fact, we need energy supply; the problem is it is all about cost. each other; there is a mutual dependency now; we Wind energy, at the moment, is probably the most need each other in order to maintain the indigenous expensive that there is. It is an interruptible supply coal supply—the Welsh coal industry. There is no because, obviously, if the wind does not blow there distinction now between deep mines and surface is no power generated, and that has its own problems mining. in introducing it to the National Grid. Wales, as a country, as I see it, has the ability to harness alternate energies, but I think they need directing Q129 Chairman: I was alluding to that at the end of more into the communities as opposed to trying to the last session. Could you elaborate on to what feed a national distribution system, because as extent you are actually having that dialogue? Could happened in Scotland, there was a Bill introduced you illustrate how that is happening? Is there is a for the expansion of wind farms and they forgot to voice for Welsh coal now? take into account the length of distribution, in peak Mr Poyner: Certainly, the industry itself is so small times, from Scotland down the inter-connector into now that we are in constant contact with each other. England. They realised that when you take into My company is a member of Coalpro, which is the account all the losses it was not really a very Confederation of UK Coal Producers. Together we attractive proposition at all, and they took that out represent the industry. It is a United Kingdom of the Bill. So it does not matter whether you are industry, not an English industry, Scottish or Welsh; producing power in John O’Groats or Cornwall, this it is United Kingdom. is now not taken into consideration. It leaves wind power and alternate energies either very expensive to Q130 Chairman: Does anyone else wish to add run or very capital intensive, and it all comes back to anything to that? investment and incentive. Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 26 Welsh Affairs: Evidence
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony
Q132 Albert Owen: Could I ask United Power if they Mr Poyner: Absolutely confident, provided have an assessment on the importance of the energy legislation is not introduced that will prevent it from mix and how they see renewables in it? playing its part, yes. Mr Williams: It may be diYcult to realise but there is a conflict between renewable energy—wind energy Q135 Mr David Jones: You mentioned the in particular—and the development of new, coal- generation gap and the need to make up the loss of derived energy stations in South Wales. That is generating power. How helpful or otherwise did you because if you want to establish a power station, find the Government’s energy review so far as that whether it is a small, 1 MW power-station or a 50 was concerned? MW or 100 MW, which is relatively small coal-fired Mr Poyner: I think it was quite fair. They certainly power station, you need to make an application to identified the areas that need attention. I am not the Regional Electricity Council, which, in the case altogether convinced that it was helpful in that, of South Wales, is Weston Power Distribution, to personally, I feel that they are still sitting on the reserve electricity export capacity. What is fence. We need a good steer and leadership from happening is that wind energy companies are government, and at the moment I do not think that making applications to WPD, they are reserving is coming. blocks of export capacity and tying the whole system up. A lot of those wind farms or proposed wind Q136 Mr David Jones: That was the reason I asked farms may not ever get planning permission, which the question. You said: “We have got to do means that at the time they get to the planning something”. permission stage all of the export capacity is tied up. Mr Poyner: I was meaning as a nation we have got In my view anyway, the application to the Regional to do something. Electricity Council for export capacity ought to be tied to the planning process; get planning permission Q137 Mr David Jones: The reason I asked the and then be able to make an application for question was did you find anything in the energy exporting electricity. We find it with gas generation. review which gave a clue as to what that something Currently we are looking as small as 50 MW, which might be? is very small for a coal station; it uses about 3,000 Mr Poyner: Certainly there was support of nuclear. tonnes of coal a week and we have to look at going I personally support nuclear as well. There was on to the National Grid in South Wales, which is an certainly a great deal in there that would make the immense cost, £2 million, just to connect to the Grid planning system more streamlined in terms of gas and export 50 Megawatts. stations and gas infrastructure. Sadly, it was silent on the planning diYculties that the coal industry has. Q133 Albert Owen: Mr Poyner, you said in your Mr David Jones: Thank you. submission: “diversification has got to be the order of the day” and “I wholeheartedly support a Q138 Nia GriYth: Actually, there was not a great balanced, mixed energy portfolio”. How big do you deal of space devoted to coal, which was one of the think the role of coal should be in that portfolio? reasons why we particularly wanted to look at coal. Mr Poyner: A good question. The role of coal, We are obviously going to be reliant on fossil fuels obviously, involves imported coal and indigenous for some time to come, whichever way you fill the coal. In my view, I do not thinkit should change very gap or try to reduce our dependence on fossil fuels. much from what it is at the present day—certainly, To me, there is a bit of an irony between going so far between 20 and 30% of the total contribution. I do down the gas route, which is a fuel you can use for not think any of us can aVord not to be interested in many things other than making electricity, and with the blend, in the mix, of the energies and the the price rise for gas do you see coal actually taking generation types that we will be employing, because back over, if you like, some of the percentage which I think it is fair to say that one of the major concerns has been taken over by gas in recent years and going is the projected generation gap that is definitely back to more production? going to occur. Between now and 2015 Mr Poyner: I think it did just that last year. I agree approximately 22 GW of power generation is going with you, in many respects it is an abuse of a vastly to come oV-stream, and between now and then that diminishing resource to burn it in power generation, has got to be replaced with something, and we have yes, definitely. got to look at every possible means. Personally, I do not think that wind has a great deal to oVer; I think Q139 Mrs James: I want to come to the there are much more worthy renewable sources, but environmental impacts. Mr Poyner, you say in your we have got to look at everything.1 memorandum that you do not deny global warming and climate change but that you feel that new measures must be developed to combat this and help Q134 Albert Owen: So you are confident that coal the situation. What new measures has your industry can maintain the present levels into the short-term itself developed to help sort these problems out? and the long-term future? Mr Poyner: My industry is very limited as to what it actually can do practically. It is more for the 1 Ev 63 generators than it is for the coal producers. Having Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 27
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony said that, in terms of the plant and equipment that Ultimately, that is where the time factor comes in, we use in order to extract the coal, there have been and that is where the expensive of going through all tremendous advancements in terms of engine the process— emissions, noise levels, output, fuel economy—all of those are addressed and continue to be addressed. Q142 Mrs James: So there are environmental However, in terms of the things that will make a real obligations, really; there are more hoops to go diVerence, it is in the way the coal will be burnt, and through. Do you think they should be there? that is not our industry, it is the generation industry. Mr Nugent: I think they should be there, but they should be addressed in one body, and to go through so many systems is where the time element comes in. Q140 Mrs James: That comes back to the point in The potential areas should be evaluated. the previous question on thinking carefully about how you utilise that coal when we have situations like last year. Q143 Chairman: Could we pause at that point because you are anticipating a number of questions Mr Poyner: Yes. on planning later on. Mr Nugent: It also comes back to how government Mr Williams: Can I just come in? New technologies will help, in the form of whatever—whether it be in deep mining, particularly related to transport, will subsidy or whatever—in that clean coal technology. allow deeper coal to be mined, whereas previously we were restricted, and they will allow the mine Q141 Mrs James: I want to come to state aid, but I entries for deep mining to be sited away from view in wanted to ask another question about the socially and environmentally acceptable places. environmental impact of all of you and then go on to the state aid question. PACT (Protecting and Q144 Mrs James: I wonder if we can turn to the issue Conserving Together) notes in its memorandum of state aid. We have concluded as a Committee in that: “coal can only be mined where it is found, but our previous report that we need to have a greater this should not mean that everywhere coal is found awareness of the constraints of the industry and of it should be mined”. Can you outline what this the investment constraints. State aid has been means in your terms, to say how you interpret that awarded to the tune of £30 million and Coal comment, and what obligation should be placed on Investment Aid is now closed to the industry—no the mining industry as a condition of consent for more applications. Do you think that the rise in price mining? of coal in the world market means that a further aid Mr Nugent: Coal exists in Wales in a known programme is unnecessary? geological structure that has been proven over Mr Nugent: Aid comes in various forms and there hundreds of years. To say coal exists where it exists are several ways in which you apply it. It is the same is just a fact of life. As I think someone pointed out when we say “coal is coal” but, yet, we are talking about clean coal technology. Clean coal technology in the previous submission, communities have been needs some form of support—let us just call it built near where coal exists because years ago they “aid”—but in giving that aid it also gives something were mainly deep mines and the communities would to industry as well because of the amount of capital live as close to the deep mines as possible. The whole involvement now, it does not matter whether you are coal structure of Wales is where it is, where it comes on surface mines or deep mines, machinery is so to surface. Just because it is under the ground, it expensive nowadays it has to be annotated over life cannot be taken out for all sorts of reasons, andthere of mine, and life of mine is dependent on the market. is a commercial aspect to that as well: it may be too As is the case, as I said before, with Aberthaw, if deep, the wrong quality, et cetera. At the moment, state aid or government aid or subsidy or grant is the Assembly are isolating where wind farms can be applied to the market, which in turn applies to the attractive and isolating areas where they can be development of the indigenous coal resource, then in commercially and planning-wise available. There a way that is transferring aid, because it is something probably should be a more intensive look at the you can finance against. At the moment, we have a future prospects for opencast coal. Deep mining is capital spend in our next programme of £20 million. slightly diVerent because it does not have the same You cannot finance £20 million against short- impact, apart from where you are actually extracting termism. The aid to clean coal technology is taking the coal from the shaft or the drift, but when it comes us into a 10, 15, 20-year lifespan as it is so much to dovetailing into existing planning legislation I easier to get available finance. think the planning legislation is there but it needs to be applied to those specific proposals. When you Q145 Mrs James: So you do not envisage a time come to larger opencast, like the one PACT is when the price of coal will be so competitive, so referring to, again, touching on what was said advantageous, that we can have state aid at the before, I do not think it should go through a developmental stage? planning system where the planning authority then Mr Nugent: It could do. There will always be a say: “Yes, we will support that” knowing balance. At the moment it is not possible but I do not immediately it is going to get called up to go to the think the Welsh coal industry within five years will Assembly or national government; there should be have suYcient volume to sustain all the markets in an interaction with both bodies from day one. Wales. Therefore, there will always be a play against Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 28 Welsh Affairs: Evidence
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony world prices. As I said in my submission, there are Australian company to extract methane from coal other factors there and that is foreign exchange, and reserves to produce hydrogen from the methane. it is a massive factor because it is foreign exchange When hydrogen is mixed back with methane to that virtually killed the indigenous mining industry produce hythane, hythane is a very, very in the UK, never mind Wales, and when prices competitive, much cheaper road vehicle fuel, and a collapsed that is when presumptions against 5-6% blend of hydrogen with methane will actually opencast mining actually were put in place. There reduce emissions by something like 30%. was no one to defend it because everyone was just trying to survive. Now, the tables have turned, the Q149 Mrs James: Just to come back to that point, dollar is declining, but personally I do not think the have you made any representations to government? dollar will be a feature in the future; I think it will be Mr Williams: We are in the process. the euro and the rouble. I traded in international coal for 10 years and it was always the dollar, as Q150 Mrs James: Have you had any support? James pointed out. It does not matter whether you Mr Williams: Yes. When I say “support”, we have are mining it, transporting it, or whatever, you are not had financial support but we have certainly had dealing in dollars. Therefore, we were related to good help and encouragement. dollars. Now we are related to dollars and we have Mr Poyner: It is probably worth making the point, contracts that are aVected by the dollar/pound perhaps, that deep-mined coal is more expensive to relationship, but personally I think it is going to obtain than coal from surface mines, as a general change; I think Russia will bring the rouble into rule, although, obviously, there will be some play, and there will be the euro, and once that exceptions. Certainly, as far as my company is happens people will demand euros and that will concerned, we have never received, nor sought, any increase the value of the rouble and the euro against state aid for our projects. Personally, and my the pound. Therefore, that would bring into play colleagues either side of me perhaps will not thank what you could be suggesting, and that is that it, me for saying this, in terms of aid I think that maybe, sustains a high price for indigenous coal but government should give very serious consideration there has to be some protection if foreign exchange to financing carbon capture and sequestration. That has an eVect, as it did 15 years ago. worldwide is going to be the biggest single contribution in tackling the carbon dioxide problem Q146 Mrs James: If you like, a guaranteed market that we have. That is where I would put my money. for coal? Mr Nugent: The word “guarantee” is diYcult, Q151 Nia GriYth: Can you see the Government though, is it not? Maybe aid or whatever could be having a role in doing research and development of supplied, looking on yearly, two-yearly or five- that, because it is such a huge— yearly forecasts. Mr Poyner: Absolutely. It is an issue for mankind, Mr Williams: There is a big diVerence, people need and that is what governments should busy to realise, between the Welsh coal industry and the themselves with, in my view. Welsh mining industry. There are more ways to exploit coal than defining opencast or underground Q152 Mrs James: Just a very quick point, Mr means. The wealthy countries in this world are the Nugent. You talked about the wider picture in the countries that exploit their energy reserves. We have European context and we know that the European huge reserves of coal in South Wales, and the point Commission is currently reviewing the Coal State I was trying to make earlier is we do not really know Aid Regulations. Have you any news on that? Have what we have got. If we can have state aid, perhaps you heard any news? some of that aid could be put towards quantifying Mr Nugent: No. the amount of coal we have got and how that resource can be truly utilised in a number of Q153 Mrs James: Nothing at all? V di erent ways. Mr Nugent: No, they are reviewing it.
Q147 Mrs James: You did mention in your Q154 Mrs James: No idea about when they are memorandum that you thought there were a number going to complete their review? of ways, including research, exploration, et cetera,in Mr Nugent: No. which government aid might be required. Do you Mr Davies: No. still believe that? Mr Williams: Yes, I did. That is right. Q155 Mr David Jones: Could I return, please, to planning policy and, particularly, the question of Q148 Mrs James: In your submission you identify a buVer zones. We have actually had a memorandum number of sectors in which you say government aid from Celtic Energy which indicates that it supports is required, including research, exploration and the the concept of buVer zones and separation zones in improvement of transport and ports infrastructure. principle but is concerned that incorrect or Mr Williams: Yes. As I said in the submission, there inappropriate application of the general policy are many ways coal can be utilised and there are could have a terminal eVect on the industry. Would huge resources of coal in South Wales. We are you agree with that? What is your own assessment of working currently on a programme with an the eVectiveness of buVer zones? Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 29
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony
Mr Poyner: Personally, yes, I would agree with it, Wales coalfield. Would that tend to indicate that definitely. I would also support separation zones. coal extraction is an unhealthy and unneighbourly There is a distinction between separation zones and activity? buVer zones, as I see it. Mr Poyner: Not at all, no. One of the major reasons that would contribute to that situation is Q156 Mr David Jones: Can you explain that, please? unemployment. Mr Poyner: The terms are to be found in the draft Coal M Tan that was issued as a consultation Q164 Mr David Jones: What practical measures document in January of last year. As I read that could be taken to ensure that noise and, more document, a buVer zone is an area that will prevent particularly, dust emissions do not aVect new development taking place around an existing neighbourhood residential properties? surface mine, whereas a separation distance applies Mr Poyner: In terms of noise, all modern planning to putting forward a proposal to open a surface permissions are constrained by the noise levels that mine, and there is to be a separation distance developers are permitted to emit. Modern day between a proposed mine and sensitive properties. equipment is very heavily suppressed. Contractors, within their mine plan, design baZe embankments, Q157 Mr David Jones: In either case it is intended to they design their work such that the majority of the keep the mining activity away from residential haul road is below existing ground level. In terms of V development. dust suppression, the most e ective means of dust Mr Poyner: Correct. suppression is water, and most modern sites have very sophisticated dust suppression units running throughout their activities. Also, within Wales it is Q158 Mr David Jones: Do you have any views as to well blessed with dust natural suppression—rain. what is an appropriate distance in terms of distance from an opencast site? Mr Poyner: I think it is very dangerous to generalise, Q165 Mr David Jones: Does this completely because no two sites are the same. What might be the eliminate nuisance from dust? right distance on one particular site will not Mr Poyner: I would be lying if I said that it necessarily be the right answer for another site. Each completely eliminates it. It certainly reduces it to an site should be considered on its own merits. acceptable extent. Q166 Mr David Jones: Acceptable in your terms but Q159 Mr David Jones: Why should diVerent possibly not in the terms of neighbours. considerations arise from site to site? Mr Poyner: You would say that, would you not? Mr Poyner: The topography, for one thing; the diVerent equipment; the existence of major roads, for instance, that could be within the separation Q167 Mr David Jones: I am asking a question. distance—roads, railways are issues in themselves. Clearly there is, to a greater or lesser extent, frankly The wind direction.2 of your own admission, a problem with dust emissions from opencast coal sites. Mr Poyner: Perhaps you misread me a bit there. I Q160 Mr David Jones: The prevailing wind was answering your question, literally, will it direction. completely eliminate it? No, it will not. Neither will Mr Poyner: Prevailing wind. your car driving along a road. That will create dust, which may be a nuisance to some people. Farming Q161 Mr David Jones: Would you accept that there activities create dust, the wind itself creates dust. should be wider buVer or separation zones for What I was saying was you cannot eliminate it, but opencast coal mines than for other mineral it certainly cuts it down to acceptable, day-to-day extraction activities? levels that are generated from just human activity. Mr Poyner: Definitely not. What is the diVerence V between them? Why should there be a di erence? Q168 Mr David Jones: So it is not necessarily unreasonable for residential neighbours of an Q162 Mr David Jones: Would you not accept that opencast site to be concerned about dust emissions? opencast coal mining is perceived as a dirty and Mr Poyner: No, it is not unreasonable, and without unneighbourly activity? the proper management controls in place it could be Mr Poyner: I am aware that some people portray it a nuisance. In terms of dust, there are two aspects: that way. I would not agree to that definition, no. there is the nuisance dust and the dust that could be damaging to health. Q163 Mr David Jones: We have had a memorandum supplied to us by a pressure group called PACT, Q169 Mr David Jones: What consultations do you which observes that a recent study, which I am sure maintain with bodies such as the Environment you will be aware of, indicated that eight of the 10 Agency and the Countryside Council for Wales? unhealthiest regions in the UK are Welsh local Mr Poyner: Certainly when putting together a authorities, and seven of those are in the South planning application we start oV with a scoping report where we take on board all of their concerns 2 Ev 63 and try to address them. There are a number of Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 30 Welsh Affairs: Evidence
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony meetings that take place prior to actually submitting November 2004, but that remained a private the application. Once the application is submitted document; it was not in the public domain until the then those people are statutory consultees and they Welsh Assembly held a planning decision committee are involved in the planning process, and it goes in February 2005, when they issued a Minded to through further consultation. Then, depending Grant Planning Consent letter, subject to us entering whether it goes to a public inquiry (which seems to into a section 106agreement. We did that, and by the be the common thing in Wales—all opencast coal end of March that agreement was signed and sealed. applications seem to be called in) and if and when Then, on 11 April 2005, the Assembly formally planning consent is granted and the site is started, issued planning consent. Then there was an then there is a regular, constant dialogue with those objection under the Town & Country Planning Act, authorities. section 288, and that objection was taken to the High Court in December 2005. They actually Q170 Mr David Jones: Both bodies? quashed the planning approval but not on any of the Mr Poyner: Both bodies. planning grounds; the High Court confirmed that it Mr Davies: And a statutory technical working party was a robust planning application that had been is entered into, which means that those bodies come properly executed, properly addressed and gone monthly anyway. Indeed, the locals, up to seven or through the proper process but they quashed it on a eight people, can be nominated to visit the site one procedural point, a point of alleged apparent bias. day every month. Indeed, at any time that the The National Assembly appealed that decision, that statutory bodies want to turn up they are allowed to was heard in the Court of Appeal in October of last turn up at will. year, and in November the Court of Appeal handed down its judgment which overturned the High Court decision. So that means that as we sit today my Q171 Albert Owen: A couple of specific questions on company has a valid and lawful planning consent, so planning. We understand the frustration and we we can actually start works on site on Ffos-y-fran heard it from the pervious witnesses. Indeed, Celtic tomorrow, but the objectors have issued notice to Energy, in their written memorandum to us, said: the House of Lords that it is their intention to “Planning restrictions often form the greatest hurdle petition the Lords to appeal against the Court of to the coal industry”, and I know that in your Appeal judgment, but they were seeking further submission Miller Argent said that “the Ffos-y-fran public funding. We heard last week that, in fact, the Land Reclamation Scheme . . . has been delayed by LSC, the Legal Services Commission, the body legal challenges which have cost many millions of responsible for issuing Legal Aid and agreeing to pounds”. What experience have you had Legal Aid, have confirmed further funding. So we collectively, and, again, as individual companies, of are expecting the objectors to issue a Petition to the planning delays and what impact has that had on the House of Lords appealing the decision of the Court industry? of Appeal. So we are in a state of limbo—do we start Mr Williams: First of all, from a gas or methane coal or do we not? If we do start we take on something in bed point of view, we have had no problems. We the order of £50 million worth of land liabilities, plus have had something like 28 out of 29 applications a further £30 million of capital costs. So we could be approved. They have gone through the necessary there with liabilities of £80 million, and if the House channels very quickly, I would say—six to eight of Lords accepts the Petition, hears the Petition and weeks. I have given a thought to the Welsh Rural finds in favour of the Petition, they could order us to Planning Association, and we get help, if anything, stop work. We have a real dilemma, and although from the planners in that respect. As far as deep they are legal issues they are legal issues that have mines are concerned, when we have had preliminary been raised under the planning process. talks with planning authorities they have been quite receptive towards the prospect of new deep mines. Q173 Albert Owen: I did ask for experience and you Q172 Albert Owen: That is a slightly diVerent tone have outlined that one in great detail, and of course to the written evidence and the evidence we have a lot of it was in the public domain; we were aware heard so far. of it. What I am trying to get at is the same question Mr Poyner: Perhaps if I explained the situation that I asked the previous witnesses: is it the delays (I regarding the Ffos-y-fran application. We started appreciate the cumulative costs that you have had as our scoping exercises, our surveys that had to be a company) or the process that is the greatest carried out prior to putting together a planning problem for the mining industry? application, in 2001. The reason why you have to do Mr Nugent: I think all things are relative, and in Mr those is you have to do ecological surveys that cover Poyner’s case he is talking about a major opencast all the seasons and can be shown to be truly site in Merthyr Tydfil. We operate both deep mine representative. We were then able to submit our and smaller opencast operations, and our last planning application at the beginning of May 2003. application took 18 months. I would say it is quite That planning application was due to be determined simply the fact that there is a lack of resource in by the local planning authority when the Welsh planning departments for mineral development. Assembly Government called it in. A public inquiry You can understand why. Because of the demise of was then held in September 2004. The inspector the coal industry—and I know they adjudicate on completed his report and issued it to the Assembly in quarrying, et cetera—these departments have lost Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 31
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony oYcials to other authorities, because apparently from historical dereliction, and the frustration that I there is a shortage of mineral development planners do find is that under planning law you look at one throughout the country. It is a major issue. specific site; you do not seem to be able to create a lateral thinking to be able to look at an area in its Q174 Albert Owen: If I could just come in there, you entirety. Personally, that is the most frustrating mention the diVerent mineral activities. Do you say point about the way in which planning law is applied that coal has been treated diVerently to any other to a company’s development. Of course, with our aggregates, for instance, or any other mining? company we have the associated drift mine as well, Mr Nugent: I do not think it has been treated which is within the same area. So we have drift mine diVerently but there is a distinct lack of resource— issues, we have restoration issues, we have operating and obviously I am referring to Neath and Port site issues and it is very diYcult to talk about those Talbot where we are—and there is an element of issues under one umbrella; they have to be area- dysfunctionality between the planners and the specific, and people just end up looking through bodies that they have to gather information from. blinkers, and it just leads to problems of coming to When you put a planning application in they are conclusions on how best to take the whole thing supposed to respond in 28 days, and they have the forward. right to extend that—understandably—but it just seems to go on and on. Our site was only a relatively Q178 Nia GriYth: I am conscious that the Chairman small site, it was on the top of a mountain, there were wants to move us on a bit, as we are running over no adjacent areas of living accommodation, et time. This issue of looking at the whole thing. Can I cetera, but it took 18 months to get through the come back to a question I asked the previous system—and there was no public inquiry; that was witnesses, and perhaps you heard it. This issue that just through the local planning system. if you want to build an industry there then, obviously, the local people in the local houses might Q175 Albert Owen: Mr Poyner, do you want to come object, but if you want to put a housing estate there in on the comparison with other minerals? you do not think of the potential. It is like you are Mr Poyner: In answer to the specific question you saying; you do not look at the potential there. Do ask, in my view, yes, there is a diVerence between you think we should be designating areas, like we do coal and other minerals. There is a prejudice against with the Environment Agency and flooding, and say: coal, there is a diVerent buVer zone specified for coal “This is a potential area for very good coal; this is the to other minerals, and there should not be; they buVer zone that will be needed round it, we would be should be treated similarly. daft to grant planning permission for houses”? Do you think nothing is done to actually make that Q176 Albert Owen: One specific question, again. happen, or do you think people just hand out Celtic Energy’s memorandum maintains that there planning permissions for estates here, there and is a requirement in the TAN (Technical Advice everywhere and then afterwards there is nowhere left Note) that a Health Impact Assessment and Social to put a coalmine because you have, eVectively, Impact Assessment should become part of every boxed up areas? coal-related application, which would have a huge Mr Nugent: The main problem is the impact on development costs “to the point of dysfunctionality between the people who represent making schemes uneconomic”. Do you agree with various bodies. You mentioned the Environment that? Agency, the inter-relation with the planning Mr Poyner: It is not my particular area of expertise departments, and other consultees on any planning but, as I understand it, all opencast coal sites are application. I think that dysfunctionality is the fact subject to an environmental impact assessment, and that there should be a team working together. as part of the environmental impact assessment Response times seem to go on and on and on, and health is a sub-group of that. Specific health impact there should be time limits put on the responses from assessments are fairly new in their concept and have all the consultees that are asked for advice. not been introduced throughout the United Chairman: Could I ask you to start to be a little bit Kingdom; they are still finding their feet, and from more concise in your answers? I commend you for my understandingit is more of a local authority issue your thoroughness but we need to move on. than a site specific issue. Site specifics are addressed in the environmental impact assessment. Q179 Nia GriYth: Mr Williams wanted to come in. Mr Davies: I was going to add that whether it is a Mr Williams: You asked the question of mining, small site or a large site, whether it is 50,000 tonnes which includes quarrying. Sand and gravel is treated or 10 million tonnes, it is the same environmental in that way now. impact assessment you have to do for each company. Mr Poyner: The point I was going to make was that I believe the planning system does provide for that Q177 Albert Owen: What discussions do you have right now. We are a plan-led planning system, with the Mineral Planning Authorities in Wales? where, on the local development plans, sites are Mr Nugent: Even on a small site we have the ability identified so that the local Mineral Planning to scope developments prior to submission, but one Authorities are aware of them. Certainly, the draft thing I would add is that we have got several coal TAN provides for this so as not to sterilise a restoration developments and non-mineral activities strategic reserve. Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 32 Welsh Affairs: Evidence
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony
Q180 Albert Owen: Still on the planning aspects, Q186 Albert Owen: Indigenous flora and fauna can PACT claim that the whole geological structure of survive afterwards? an area and thriving ecosystems that took hundreds Mr Davies: Yes, in all diVerent aspects. I was with or thousands of years to evolve are changed. How do children one evening looking at the wildlife and I you counter the allegation that opencast comes must admit—and that was Celtic Energy then—it along and basically destroys the whole environment? was absolutely amazing—the degree that they go Mr Poyner: I would not agree with that as a into, in fairness to the company. statement. No way does it destroy the geological Mr Poyner: Very briefly, I can think of no finer structure. Basically, what it does is it may example than phases one and two of the East temporarily change the surface features, but as the Merthyr Land Reclamation Scheme, which actually site is restored those surface features are put back. In reclaimed derelict land right in the heart of the terms of the volume of excavation, it is a drop in the town centre. ocean in terms of the geological structure. Mr Davies: Absolutely right.
Q181 Albert Owen: What about the biodiversity that has taken years to develop? Q187 Nia GriYth: Can I ask, very, very quickly, Mr Mr Poyner: It very much depends on the site in the Gerwyn Williams, is there anything further you first instance. Very often, opencast coal sites are put want to tell us, apart from what you have already back with a greater potential for biodiversity than said, about coal bed methane? Also, do you see any ever existed prior to them starting. The majority of government role there, again, in developing that? opencast coal sites are, in fact, brownfield sites. Lastly, is there any comment you want to make about the Mines Rescue Service? Q182 Albert Owen: Does anybody else want to Mr Williams: It goes back to what I said earlier, that comment on that? I think it is a mixture and we need to quantify the Mr Williams: As I said, we are not at all involved in resource we have. It is diYcult—and John is an opencast mining; we are an underground mining international banker—to go to potential investors company and our relationships and the response we and say: “Please give us £30 million just to look at have had from local planning authorities have been what is there”. If there is nothing suitable there it diVerent from that of colleagues. has gone. Q183 Albert Owen: What examples can you give the Committee of previously opencast land in Wales Q188 Nia GriYth: Do you think there is a role for— that has been fully and sensitively restored and Mr Williams: There is a role for joint funding for replanted? exploration purposes, to establish what the Mr Davies: Maes Gwyn. resources are. Mr Davies: I totally agree with that. Q184 Albert Owen: Some of us may not be fully Mr Williams: Secondly, there has been a lot of aware of what has gone on there. Could you briefly success with a company called Composite Energy in tell us? Scotland recently, which I think proves the point for Mr Nugent: It is an area that was restored to natural coal and methane, certainly in South Wales, because restoration contours, a mixture of grassland, Dr Cready, who is probably the UK’s expert on coal broadleaf trees, et cetera, but it never was grassland bed methane, in his calculations put South Wales and it will never be grassland; it was on a mountainside and, basically, it is the contouring that top of the league for potential coal bed methane has blended into the rest of the valley. production. There is huge scope. For example, when we talked about reserves earlier, we usually talk about those reserves that are left around closed Q185 Albert Owen: I know there are diVerent British coalmines. Our petroleum licences in South examples in diVerent areas, but how long do you think that takes, on average? Wales cover 430 square kilometres, the bore holes Mr Nugent: With a coal site, obviously, it is all that we have from British Coal are about 24 in total, relative. We are talking about our existing site of two and they prove somewhere in the region of 20 to 28 years’ production followed by 18 months of metres of coal, plus associated sandstones. If you restoration. just take 20 metres of coal and take one square Mr Davies: Then a five-year aftercare service. kilometre, the specific gravity of coal is 1.35, on Mr Nugent: Maes Gwyn, I think, operated for 10 average, so it means that in one square kilometre years. there is something like 27 million tonnes of coal. If Mr Davies: It operated under British Coal, and our you multiply that by 430, it is 11 billion tonnes of colleagues could have explained that better than me coal. Opencast mining and deep miners probably but I think it was opencast for 30 years. In fairness will not be interested in a lot of that, but wherever to Celtic Energy, every site that they have been there is coal, and it might be a very small, thin seam, associated with and they have put back, I would the energy is there, either in the coal or in the have said, living in the locality, is exceptional work. associated sandstone. So we should, I think, be The work I have seen that they have done is investing money as a nation to look at what we are tremendous. sitting on. As far as the Mines Rescue Service is Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 33
23 January 2007 Mr Rhydian Davies, Mr Richard Nugent, Mr James Poyner, Mr Gerwyn Llewellyn Williams and Mr John Anthony concerned, we believe, and so do the Mines Rescue Mines Rescue Service would be called out. So we Service to a degree, that they should be treated in believe that they should be treated in exactly the exactly the same way as any other emergency service: same way as the Fire Service, Ambulance and Police. the Fire Service, the Police or the Ambulance. At the Mr Davies: I totally agree with the points made; if moment, the only funding they get is via the coal that is not looked after we have a serious problem. production because they get a royalty on coal production. They do earn money by training Q189 Chairman: Can I thank you all for your people—for example, they trained the Fire Brigade evidence. I apologise for taking so long but that on rescue techniques. If, for example, there was a indicates the thoroughness of your replies and, I crash in the Severn Tunnel with two trains the Mines hope, the thoroughness of our questions as well. As Rescue Service probably would be called out. If I said in the earlier session, if you feel there is there was an incident in Big Pit, which is a museum, something additional you want to add, we would be the Mines Rescue Service would probably be called very pleased to receive a further memorandum. out. If there was a terrorist attack anywhere and Thank you. there were people trapped it is highly likely that the Mr Poyner: Thank you for the opportunity.
Witnesses: Ms Gaynor Ball, Secretary, Ms Suzanne De Celis, Issues Co-ordinator, Protecting and Conserving Together (PACT); Mr Rory Francis, Public AVairs and Press OYcer, and Mr Graham Bradley, Casework Manager, Woods Under Threat Team, The Woodland Trust, gave evidence.
Q190 Chairman: Good afternoon. Could I ask you, Ms Ball: The Enterprise Minister, Andrew Davies for the record, to introduce yourselves, please? AM, put it in simple words: “Renewable energy is Ms De Celis: I am Suzanne De Celis; I am a member critical to our future energy needs, and Wales is of PACT and the Issues Co-ordinator. leading the way”. That was in the Western Mail on Ms Ball: I am Gaynor Ball; I am Secretary of PACT 18 October. I think Wales has got the chance and the and, also, a resident of Kenfig Hill, which is close to resources now to promote renewable energy. I know the Margam site. Suzanne has been doing a lot on economics, if I can Mr Francis: I am Rory Francis; I am the Public hand you over to Suzanne to talk about the AVairs and Press OYcer for Coed Cadw, the economics side. Woodland Trust in Wales. Ms De Celis: I have not being doing a lot on the Mr Bradley: I am Graham Bradley, also from the economics side of it but I will comment. I feel that we public aVairs arm of the Woodland Trust. are calling the coal industry “the coal industry” and we are incorporating into that the opencast, private Q191 Chairman: Could I begin by asking a question mining business, which in Wales, at the moment, is about the economic importance of the coal industry absolutely terrorising communities, like ours in in Wales. Do you agree with the Department for Margam Parc Slip, with their ongoing exploitation Trade and Industry that the coal mining industry is of countryside features, amenities, physical access, of continuing economic significance to Wales? health and, apart from that, our wellbeing which is Mr Francis: I would agree very much with what aVected by the ongoing situation. Asking me about Lord Truscott said last week, where he said that the the economics for Wales of the coal industry, I think energy review found that if opencast could supply that died out with the deep mines in the 1980s. The energy that was economically sustainable and very same communities are now aVected by opencast environmentally acceptable then it should go ahead. exploitation, we joined forces with our parents, with The point is, is the industry environmentally our families, with our neighbours, to fight the sustainable? I would also agree with the House of closure of those pits. They were closed, people had Commons Energy Select Committee in 1987 that to move on, people did move on, and now 20 years opencast coalmining is one of the most later the same people are being attacked, and it feels environmentally destructive processes being carried like a sort of frontline onslaught, sitting with an out in the UK. There have to be strong guidelines. opencast in your distance, slowly coming on. It is as The Welsh Assembly has laid down its Coal M though there is some sort of attack coming up, and TAN, and we would say very clearly that the the economics . . .3, 4 industry has to meet those requirements, and it Chairman: Order. You are anticipating questions would be quite wrong to set an arbitrary figure and, that are about to be asked. eVectively, fix the planning system to allow that much coal to be produced. To do that, in our view, Q193 Mr Martyn Jones: Figures provided by the would be to do the absolute opposite to what the Coal Authority to the Committee show that by the Stern inquiry was calling for in terms of end of 2005 800 people were directly employed in the greenhouse gases. mining industry, out of which 345 were employed in opencast operations. How do you answer the point Q192 Chairman: You, maybe, have anticipated made by Celtic Energy that “these jobs are well paid some other questions, but could I ask you, from PACT, whether you consider that the coal industry 3 Ev 90 is of economic importance to Wales? 4 Ev 64 Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 34 Welsh Affairs: Evidence
23 January 2007 Ms Gaynor Ball, Ms Suzanne De Celis, Mr Rory Francis and Mr Graham Bradley and well skilled. Their loss to any community would regulations on dust and noise suppression, and be dramatic . . . such loss from within opencast traYc management requirements which can be a mining would be every bit as severe as those lost condition of consent, mean that the potential impact from deep mining”? of [opencast] developments on local communities Ms De Celis: Three hundred and forty-five jobs in can be much better managed than was the case in the whole of South Wales? previous decades.” What are your views about that? Ms Ball: We can only speak from personal Q194 Mr Martyn Jones: Eight hundred people in experience, on our experience at Margam and Parc mining, and 345 in opencast. Slip. We have seen it move like a scar down our Ms De Celis: In Celtic Energy. Approximately three valley, from the privatisation from British Coal, hundred jobs in three sites that Celtic Energy have. when Celtic Energy took over, and when they had If you would like to compare that with one new solar the current planning application it was on condition factory that has emerged in CardiV, which employs they put in a drift mine. Immediately they had 300 people, I would say, although I am not an consent it became opencast. We have seen it move economist, that if you invested in solar for the down the valley. I notice the DTI mentioned about economics of South Wales and jobs it is a far better restoration within three years from a working site. It investment, both economically and has been 12 years now since any restoration was environmentally, because it does not destroy done at all in our area, and they are now getting hectares and hectares of land, cut people oV from dangerously close to the next chunk of our green their services, their footpaths and their physical wedge, which is our breathing space, green gym— ability to exercise. So, economically, the social and whatever you want to call it. As far as the dust issues health and environmental costs are never put into are concerned, we think the threshold is far too high the price. When the people here from the deep mines anyway. Whatever we complain about it is all within and the opencast mines are putting forward their legal limits. It does not matter what we complain private businesses they never have to weigh it up about. against social costs; there is never a cost-benefit analysis taken up. So on the economic side of it, Q196 Mr David Jones: When you say the locally, we do not know of many, if any, skilled jobs; “threshold”, are you referring to buVer zones? I think it is two in Margam (Neath/Port Talbot) Ms Ball: No, we are actually referring to the where I am living, which is not exactly marvellous monitoring. for the economics on the job side of it. If you take into account the lack of ability for us to move on and invest in our properties—we live in a rural site—we Q197 Mr David Jones: Of the level of dust cannot go on and make our plans to have extensive generated? leisure, tourism or whatever we have been told is Ms Ball: Level of dust generated. Nuisance dust is important to Neath/Port Talbot because of the not the problem but there is no legislation at all for opencast situation. So, economically, I would say small particulates below PM 10s.5 although the coal is there, although private companies will always want to use it and make a good reason for it—we heard the DTI saying that Q198 Mr David Jones: What are your views on buVer zones? You have heard both the unions and imports have not impacted on the economic V development or supply—although it is very nice to the operators, again, castigate bu er zones and they want to decrease buVer zones for opencast have an intimate relationship with coal, and be coalmining. What are your views? patriotic towards it, when you are facing communities with the destruction of an environment Ms Ball: We say 500 metres would be preferable to and the worry about health, which is just as bad as 350, which is what the Coal M TAN has said for having harmful health—in fact, it is worrying about Wales. Five hundred metres would be preferable. it which may be unhealthy—I just feel there is no Even 500 metres is no level of protection. A lot of economic case for further opencast mining. emphasis is put on the Newcastle study. That was Chairman: Could I stop you there. You are testing only children for asthma levels and it was anticipating so many of the other questions. Please done at 1,000 metres to 750 metres away from an opencast site, and yet it found small but significant be concise in your answers, or I will interrupt you V much earlier. e ects on children. We are now within 250 metres of Mr Martyn Jones: I think you have answered my a working site. second question. Q199 Mr David Jones: I would like you to expand on Q195 Mr David Jones: PACT’s memorandum has the health issue because Celtic Energy’s been very forthright in its views as to the eVect of memorandum claims that independent research has opencast mining on whole communities in every been unable to prove any direct link between respect, but particularly in respect of the generation opencast operations and the health of nearby of dust and noise, blasting, vibration, and so on. I communities. You take the contrary view. You have think you were present for the earlier evidence mentioned the Newcastle study. Do you have any session and heard what the unions and the operators other evidence? have to say about it. There is also a memorandum from the DTI which concludes that “ . . . recent 5 Ev 64 Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 35
23 January 2007 Ms Gaynor Ball, Ms Suzanne De Celis, Mr Rory Francis and Mr Graham Bradley
Ms Ball: Just on the local issue, local headmasters woodlands across Wales which, you say, have come gathered evidence and it might not be scientifically under recent threat. What sorts of developments and mind-blowing or whatever but that evidence was schemes have been involved in those threats? taken from local schools, stretching from the area Mr Francis: As we say in the evidence, the greatest which has been with opencast longer, which is Cefn number, ten, are from road schemes; 7 from utility Cribbwr, down to the sea. What actually came out of services; 5 from minerals (and that includes Coed that was that the children who were carrying asthma Hafod Heulog, of course), 6 from housing pumps, the children who were aVected by asthma, development, 9 from others, and those include numbers actually fell as you came down towards the things like golf courses, roads—very much a variety. coast away from the site. I have to say that we were surprised when we became aware that Coed Hafod Heulog was under threat from the extension of Margam, because the Welsh Q200 Mr David Jones: That is anecdotal evidence. Assembly Government have adopted a very far- Do you have any independent, scientific evidence? sighted planning policy in Wales; it recognises that Ms Ball: There is more evidence emerging from ancient woodland is a habitat that has not just a very countries like the USA; there is more and more high biodiversity value with more threatened or evidence emerging from Europe all the time. The endangered species than any other habitat in the UK Swedish secretariat has got numerous pieces of but it is also within human timescales and it cannot information on particulates. The Harvard study is a be recreated because there are a whole variety of six city study which proved without a shadow of species in there which are very, very slow to colonise. doubt that lowering pollution levels reduces Most ancient woodland in Wales has been there mortality. since shortly after the Ice Age, 9,000 years, and it was interesting what the gentleman was saying Q201 Mr David Jones: Would you be able to send a previously; there were examples of restoration of the memorandum to the Committee detailing these topography but I do not think that anyone would studies? claim that they could restore or indeed trans-locate Ms Ball: Yes. an ancient woodland. We were surprised that the Mr David Jones: Thank you. company thought it in their interests to put in an application which would totally destroy an ancient Y woodland at Coed Hafod Heulog. Q202 Nia Gri th: If I could come back to you on the Mr Bradley: Can I add one thing? The fact that we issue of the 250 metres, do you see any new flexibility quoted 35, those are the cases we know about; there with something like 500 metres? It might depend if may be many more. Across the UK there are many you are on the other side of the mountain; there can more that we know about, so we are sure it is a much V be very significant di erences according to where the greater number. wind direction is and whether there is a mountain. Topographical diVerences are very important, and I can appreciate that you feel that 250 metres is very Q205 Chairman: Is it your view that, in the light of close, but 500—there could be some flexibility in what you have just said, existing planning that. regulations can be relied upon to protect ancient Ms Ball: No, the problem is the smaller particulates woodlands? Are they appropriate for the purpose? can travel great distances. Take Chernobyl: who Mr Francis: I think we would agree with what they would have thought that North Wales would be say. It is a fairly recent change. Planning Policy aVected by particulates travelling in the air? This is (Wales) came in in 2002 and being a fairly recent what happens with small particulates—they can change I think the planners and developers are still travel great distances. Three miles has been quoted becoming aware of it. People know what SSSIs are. as the safe distance for the very small particulates. There are still a lot of people that do not realise how BuVer zones as well, again, leading into our site, and why ancient woodlands are so special. On paper when the proposed extension actually puts no buVer we would agree with that, and so far there have been zones between the housing and the next extension. a number of cases where we have said “Such-and- So what will actually happen is the prevailing winds such a case is a big test case for the new policy”. (we were talking about prevailing wind with the last Thankfully, there has not been a big case of body of people) will blow any pollution straight on destruction of ancient woodland since the new to the community. regulations came in—Coed Hafod Heulog certainly would have been—and of course we do not know what any new application would mean. Q203 Nia GriYth: Obviously, you are talking about specifics. The question is, really, is it possible to have an opencast site property sited, which can be used Q206 Chairman: In your memorandum you say: “ancient woodland is home to more threatened and which does not interfere with— species than any other habitat in the UK”. In the Ms Ball: Certainly, if it is three miles from written evidence from Celtic Energy, it claims that communities. opposition to opencast development sometimes extends to “identification of species which have Q204 Chairman: Can I move on now to the threat to never been near a site, let alone aVected by such a ancient woodland, which I suspect is a question to development”. Can you comment on that diVerence the Woodland Trust. You identify 35 ancient of opinion? Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 36 Welsh Affairs: Evidence
23 January 2007 Ms Gaynor Ball, Ms Suzanne De Celis, Mr Rory Francis and Mr Graham Bradley
Mr Francis: Certainly I have never come across an Q207 Mr Martyn Jones: Celtic Energy has provided example of that. I do understand that the the Committee with a memorandum which says that Countryside Council for Wales have even looked once coal extraction operations have been into doing genetic analysis on newts in particular completed, sites are restored to high standards, with areas in order to be able to say—it is possible to a strong commitment to protection and say—a Great Crested Newt from a certain area is enhancement of scientific and ecological value of the going to have more genetic information in common land. So Celtic Energy says: “The company is proud with Great Crested Newts from the same area rather of what it has achieved at sites such as Parc Slip, than one from Scotland or the North of England. It Nant Helen, Derlwyn, Incline Top, Kays & Kears, is possible to do that, so it is not easy to fool Brynhenllys and Selar”. Do you acknowledge the ecological, biological specialists. I have certainly success of these and other restoration schemes? never heard of that happening myself. Ms Ball: No, we do not. I have brought a folder Mr Bradley: An earlier witness said that the along, if you would like to see it later, on Parc Slip. environmental statement has to be done over a Parc Slip themselves admit that the areas that are not period of a year or longer, and it is one of the things rich in biodiversity are the areas that are never that elongate the planning process. Because I cover touched by opencast mining. They made a a wider area than my colleague, there are plenty of statement: “Semi-mature native species as well are cases where even if the expert has been on a site and moved oV the other site and trans-located; rescued looked at it from the point of view of bats or from opencast operations. However, the majority something specific, he has missed something on that were largely unsuccessful”. There were marsh particular day or week. The local knowledge was fritillary butterflies in the last operation; they tried to never invited, and somebody else comes along and move those but the species died out. There were says: “Yes, there is this here” and it is protected supposed to be marsh fritillary on the next phase; there, and so on. they have tried to say there are no marsh fritillaries, Ms Ball: The environmental survey which was yet their food plants are there and it is a known area carried out in 2004, when this proposed extension for marsh fritillary. first came up, was done by Humphreys Rowell Association, which apparently is a well-known body Q208 Mr Martyn Jones: I am from North East of people that are employed by companies like Celtic Wales and we do not have any mining left, but we Energy. The first thing we noticed about the have had some areas of opencast, and visually they environmental statement was they give five figure look pretty good to me. In fact, I challenge people to grid reference numbers. I am not geography trained find out where they are. They were quite small but I know that grid reference numbers cannot be schemes. odd numbers. There were five grid reference Ms De Celis: You have to bear in mind you can numbers there. There was no survey done on bats; never restore a heritage site. If you had a historic otters, an inadequate survey done; badgers—“move farming building or a community, as we had at the badgers”. (I think they said something like they ,Ffordd Y Gyfraith near Tondu, that was just were going to “encourage the badgers to move”— bulldozed through . . . persuade them out of their homes. Can you imagine: “Would you mind moving?”) The birds as well, it Q209 Mr Martyn Jones: I am not suggesting they was the wrong time of year when they did the bird are, but I am talking about visually. I do not want to survey. With the result, residents and local experts get into debate about what you want to talk about. got together to do their own surveys, which they I am making the point from my personal produced, sent those in, which made Celtic Energy constituency. do another survey and, again, they identified more Ms De Celis: If you are talking about restoration things in the second survey. Still inadequate, the and looking at it visually, you could not notice Countryside Council of Wales was still not unless you had known the area first. convinced with it. They have done three submissions of that environmental survey. The same with maps. Maps did not have housing on them. You talked Q210 Mr Martyn Jones: It can be done visually. I do about housing, Ms GriYth. There are two new not want to get into a debate. You have already housing estates that have been built recently; they made the point. were not included on the maps at all when they Ms Ball: I disagree with that. At Parc Slip, for produced maps. So they leave oV, and it is the same instance, the soil is very poor. So native species, with the environmental statement. The last survey broadleaf species, are still stunted; they have not they did on otters was taking place now, and they are grown. The species that the actual opencast 40 metres away from the wood now. Otters are shy; restoration holds are far less than the species that are it is well-known that they do not come close to not touched by opencast. If you want to walk along noise—they do not like noise. They are nocturnal as concrete paths. Quite honestly, I prefer walking in well, and their forages are nocturnal. They found the country. evidence of a footprint and they have had to acknowledge there are otters using the river. The Q211 Mr Martyn Jones: I am just saying from my point I am making is that unless the local people experience, in my constituency, it appears it can be catch on to these things and do their own surveys, done. I am not saying Celtic Energy— that first survey would have gone ahead, and it was Ms Ball: It was not Celtic Energy, it was British inadequate. Coal. Page Type [O] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Welsh Affairs: Evidence Ev 37
23 January 2007 Ms Gaynor Ball, Ms Suzanne De Celis, Mr Rory Francis and Mr Graham Bradley
Mr Bradley: May I say, on the Newbury Bypass, if which have been there for centuries are very well you now go and look at the woodlands around worth protecting and cannot just be written oV.The Newbury Bypass they look just like they probably industry, at the end of the day, if it wants to be did before the road was built, but the species there sustainable, has to show that it can work without have died away and it does not have the same rich causing long-term irreparable damage. biodiversity. So, for the visual landscape, I accept what you say, but the species have been taken away Q214 Mr Martyn Jones: To ancient woodland, as and never to return. it were? Mr Martyn Jones: I am a biologist, so I am sure that Mr Francis: Yes, and other habitats as well, and, is probably correct; I am not denying that but the most particularly, people. point I was trying to make is it can be done visually. You have got other points to make; you have made Q215 Mr Martyn Jones: The other Mr Jones made those points. the interjection that it is this balance. Would you say that there is no economic benefit that the country as Q212 Mr David Jones: You are not suggesting that a whole could get that would justify getting rid of not environmental considerations, which will always all ancient woodland but a proportion of it? arise, should on every occasion be allowed to stand Mr Bradley: An earlier witness actually said that in the way of economic progress? Is it not the case they simply did not know how much coal there was that there has always got to be a balance struck in South Wales at the moment. That is something between preserving the environment and that has to be borne in mind in answering that safeguarding and improving the economy of this question, because if there is far more coal at a country? Sometimes it may be necessary to sacrifice particular site (being site specific now) why should habitats for the good of the economy of this country. that be extended and cause such harm, both to the Mr Bradley: I cannot take a great deal of issue with environment and the local neighbourhood? that, but it is the evidence that people use in reaching Mr Francis: We have to put our evidence together— that compromise decision. There are habitats that as everyone does—before seeing everyone else’s are degrees of habitats, for the sake of argument, and evidence. I was very heartened, I have to say, that at the top of the peak is ancient woodland, as we put nowhere in the huge amount of evidence that has in. There are also rare minerals that you cannot find been put on the opencast side do any of the anywhere else, and you have to look for the companies say that the Assembly’s policy on ancient compromise. woodland is completely indefensible and should be Ms Ball: Can I say there is no compromise on that. got rid of. There seems to bean acceptance there that Rare snails are protected, rare newts are protected; the principle is important, and I welcome that, and I we are not protected—the people are not protected think it is the way we should look forward. themselves. We feel that legislation is far too weak to protect local people. Q216 Chairman: I hope that we have covered all the points. If you feel there is something that you wish Q213 Mr Martyn Jones: I can anticipate the answer to add, please say that now. to this one as well! The Woodland Trust’s Ms Ball: I would like to bring up one thing. Our MP, memorandum says that “new planting can in no way Madeline Moon, actually posed some questions to compensate” for the loss of ancient woodland. You Parliament because we are fed up with the Newcastle have already answered that, in a sense. Given that study being brought up every time there is an Celtic Energy’s paper notes that “new habitats can argument over opencast. It is an outdated study and be created so that they are every bit as good as, if not it is brought up. It is an outdated study; there is far better than, those lost temporarily”, can you explain more recent evidence than that emerging from all the diVerence between the two assessments? over the world. She asked the question: “To ask the Ms Ball: We have mountains now where we never Secretary of State for Health what recent assessment used to have mountains. They have been there for has been made of health eVects on people who live 12 years. close to opencast sites and where diVerences have Mr Francis: Quite simply, you cannot substitute X been observed in health eVects during diVerent with Y. Native woodland once covered most of seasons of the year.” Caroline Flint replied: “No Wales, most of England. What we have got left is assessment has been made since 1999”, and then she only about 2% of the land area; even of what we had goes on to talk about the Newcastle study. The point in the 1930s we have lost nearly half of that. If I was we are making is, with new evidence emerging from to take you (and I would not have to because you are all around the world, why is that the only evidence a biologist), we would see assemblages of plants that is brought up whenever there is a proposal for which would show us very clearly that that opencast? Why use an outdated study? woodland was special. You cannot recreate that. Ms De Celis: Could I come in on that, please? Why Yes, you can do very interesting things; you can put do they not do proper scientific evidence and surveys lots of things that people would like—a shopping at the start of an opencast, during an opencast and mall—but it would not be compensation, and at the end, at specific sites? It is not a very good something irreplaceable would have been lost. I situation where people complain about impacts and think the Welsh Assembly was quite right to put a people worry about health concerns, and they are special emphasis on an asset which is irreplaceable. told: “It’s all within guidelines, or limits of It is not just the woodland either; ancient hedgerows legislation”. There has never been a local study done Page Type [E] 12-12-07 19:39:24 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG2
Ev 38 Welsh Affairs: Evidence
23 January 2007 Ms Gaynor Ball, Ms Suzanne De Celis, Mr Rory Francis and Mr Graham Bradley on any scientific evidence, and people just do not figures on them. Probably they’d still exist from the believe it. People are made to feel it is all inevitable, import, the transport and the removal of the coal. it is all going to come anyway, and that, in turn, leads The DTI made a point in their evidence on the 16th to them feeling “We don’t count”. They take away that the dust in transport was the same for the people our footpaths, so we cannot walk, we cannot there as the dust for people living near opencast sites. exercise, and yet it is all “acceptable” and all “the Well, that is an absolutely ridiculous impression, minimum” and it is all “within guidelines, thresholds and they need to come and stay a considerably and margins”. Whatever we feel, whatever we worry longer time at the sites where people are trying to about, it is all respectable and under the law. This live, like we are, to know that that is not possible. does not help us to feel healthy. The DTI said, also, the restoration normally begins Ms Ball: The other thing is an independent study, after three years of working. It is 12 years since they such as the CardiV University study, health impact started working at Margam Parc Slip but there is not assessment, is always trying to be discredited. That a sign of restoration. They have made extension assessment did not just talk about dust, as Celtic application after extension application—thank Energy was saying, it talked about whole other goodness that the system is dragging it out and health issues; complete health: physical, mental well- making them put in new and better surveys. The being. With Bridgend we are one of the worst areas industry, of course, would like it to be slapped and in UK as far as health is concerned, and Neath/ bulldozed through regardless of all environment, Talbot as well. Surely, to take away our last little health and social costs for their profits. The chunk of green wedge is wrong. Montgomery has economic state of the country does not depend on coal; they even said it was small themselves. come out as one of the best areas for wildlife in Wales; we have come out as one of the worst areas. Q217 Chairman: I did ask you at the end if you felt Why take away more green wedge land that we can that you wanted to add anything to your earlier use for enjoyment and for nature? replies because I did cut you oV earlier. I am cutting Ms De Celis: Could I just add to that? When the you oV now with a request that if you feel there is gentlemen were talking before and they were making something else that you wish to add do not add it the point that the valleys needed the jobs from the now but please write to us. In response to one opencast site, I cannot speak about the valleys, I question, Ms Ball, you suggested that there were only know locally that they are not giving any other studies in other countries. We would be very benefit to the local economy; there must only be the pleased to receive those studies. benefit going to the wider spin-oV jobs. These spin- Ms Ball: Okay. oV jobs, if they exist, we are never given any facts or Chairman: Thank you very much for your evidence. Page Type [SO] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 39 Written evidence
Memorandum submitted by the Department of Trade and Industry
THE ROLE OF COAL IN WELSH ENERGY SUPPLY
1. Coal Use in Wales 1.1 Final consumption of coal in Wales is estimated to be in the order of 3.5–4.0 million tonnes per year. It can be considered under four headings: coal-fired electricity generation, iron and steel production, other industrial and commercial uses and domestic supplies.
Coal-fired Electricity Generation 1.2 There are two coal-fired power stations in Wales. — Aberthaw has an installed coal-fired capacity of 1,455 megawatts and typically burns up to 3 million tonnes of coal per year, some 40% of which is of Welsh origin, the balance being imported. — Uskmouth has an installed capacity of 393 megawatts. It currently relies on imported coal, having been unable to secure local supplies, and could burn 1 million tonnes a year at full load. It was refurbished in 2000, extending its life by around 25 years, and is already fitted with Flue Gas Desulphurisation and low NOx (Nitrogen Oxide) burners. It is now burning biomass with coal to reduce its carbon output. Its operator, Carron Energy, has applied to build a combined cycle gas fired station on the same site because it believes that environmental considerations, as well as the local power requirements, mean that gas fired generation will be best placed to meet the challenges of energy delivery in the coming decades. These power stations currently represent 22.5% of total installed generating capacity in Wales as a whole, but just over half the total capacity in South Wales alone. Both have “opted in” under the Revised Large Combustion Plants Directive and should be able to operate until at least 2015.
Iron and Steel Production 1.3 Coal is used both in coke production and for injection into blast furnaces as part of iron and steel making. Total Welsh consumption for these purposes in 2005 is estimated to have been around 1 million tonnes.
Industrial and Commercial Use 1.4 Other industrial and commercial users in Wales are estimated to consume some 70,000 tonnes of coal per year. This includes feedstock for boilers providing heating and hot water in public buildings such as hospitals and schools. Small railways across Wales also fall within this sector.
Domestic Use 1.5 Although this sector has declined significantly in recent decades, especially where there is access to the gas network, coal is still an important fuel in rural areas and for older householders. Total domestic consumption of coal in Wales is estimated to be around 175,000 tonnes per year. The number of miners and former miners receiving concessionary fuel is in steady decline, but some 3,340 people still receive fuel under the National Concessionary Fuel Scheme, and the total take up in South Wales is over 15,000 tonnes a year; this is included in the preceding total.
Summary 1.6 Electricity generation accounts for around 70% of total annual coal consumption in Wales, and the iron and steel industry for a further 25% of the total. The majority of this coal is imported owing to lack either of local output of the required quality (eg coking and other metallurgical coals) or of reliable absolute tonnage from the remaining coal producers. (For the UK as a whole 54% of all steam coal imports are currently of Russian origin, while 55% of coking coal imports are from Australia.) Consumption in all other sectors accounts for only 5% of the total, but remains important to the survival of the Welsh coal industry. For example, Tower Colliery has been supplying around 120,000 tonnes per year of premium coal into non- industrial markets; this represents 21% of its output but accounts for around 34% of its income. Coal for these markets can also be produced at surface mines. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 40 Welsh Affairs: Evidence
1.7 The following table “Coal Use in Wales, 2005” summarises the above information and puts it into a UK context. It should be noted that below-national-level data is not readily available for all of these categories of use, and that while the All-UK figures in the table are taken from Digest of UK Energy Statistics (DUKES), some of the Welsh data are estimates based on UK totals patterns taken from the December 2005 edition of “Energy Trends”, which included below-national-level data for 2003 based on modelling DUKES data among other sources. (Equivalent data for 2004 are expected to be published in Q1 2007.)
COAL USE IN WALES, 2005 (million tonnes except where stated) Generating Wales About 2.500 All UK 52.084 Coalfired capacity Wales 1,848 MW All UK* 28,855MW As % of total Wales 22.5% All UK* 37.2% Iron and Steel Wales About 1.000 All UK 6.603 Industrial Wales 0.070 All UK 2.548 Domestic Wales 0.175 All UK 0.614 TOTAL Wales 3.795 All UK 61.849 * includes coal/oil stations
2. Coal Mining in Wales
Welsh Coal Output in the UK Context 2.1 The following table sets Welsh coal production in the national context: (output figures in tonnes) 1997–98 2001–02 2005–06 COAL OUTPUT Deep mined Wales 767,248 691,361 558,014 All UK 28,104,389 17,356,500 10,317,219 Surface mined Wales Wales 1,749,595 1,400,545 1,209,982 All UK 16,287,748 13,252,807 10,152,930 Employment Wales: Deep 850 601 453 Surface 661 452 311 All UK: Deep 13,123 8,473 4,082 Surface 4,547 3,041 1,821
Coal State Aid 2.2 Since 2000, Welsh mines have received over £29.34 million in State Aid, as follows:
2000–02—UK Coal Operating Aid Scheme (UKCOAS) A total of £22.79 million was awarded to five operators to help to meet the gap between their production costs and exceptionally low world market coal prices, as follows—
Anthracite Mining Ltd £2,331,451 (Aberpergwm colliery) Betws Colliery Ltd £4,913,800 (now closed) Celtic Energy £6,164,600 Ffynnonau Duon/Blaentillery £431,946 (now closed) Tower £8,945,000 (see above) Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 41
2003-2006—Coal Investment Aid
A total of £6.559 million has been awarded to Welsh mines to provide up to 30% reimbursement of costs of approved investment projects, as follows: £3,057,304 to Tower Colliery £3,501,977 to Energybuild Ltd
The Future of Coal Mining in Wales
2.3 The Welsh coalfields still contain extensive unworked reserves, some at depth and some most suitable for surface working. Whether or not this coal is recovered in the future depends on a number of factors including a continuing demand for coal, the economic cost of recovery relative to coal prices, and the availability of development consents to access the coal. 2.4 Tower Colliery is expected to exhaust its reserves of economically recoverable coal in late 2007 or early 2008; it has received nearly £3 million of Coal Investment Aid (CIA) since 2003 to help it to recover these reserves. Aberpergwm Colliery has also received CIA funding to support a programme of investment to re-access previously abandoned reserves; it is hoped that the mine will restart commercial production during 2007–08. Several other deep mine projects are known to be under active consideration, including development of the Margam coking coal prospect and re-opening of the Pentreclwydau mine. Decisions on these projects are commercial matters for the site owners, but the renewed interest in them reflects changes in world coal markets, where prices have risen in response to strong demand from expanding economies such as China. On current analysis there is little risk that this demand could lead to an international shortage of coal, but the situation is kept under review. 2.5 The future of surface mining is Wales is heavily dependent on the structure and application of relevant planning regulations. Under the new development plan-led system, local planning authorities for coalfield areas should identify future potential mine sites, subject to the normal planning consents process. This system should also help local authorities to avoid zoning decisions which could prevent future access to recoverable reserves. Recent Inspector’s Reports following Public Inquiries into surface mine planning applications have recognised the economic importance to Wales of continuing access to local coal reserves. Surface mining can also benefit communities by remediating areas damaged or left derelict by previous industrial activity at no cost to public funds. Furthermore, it should be recognised that surface mine projects are transient in nature—even major sites expect to have areas in restoration within three years of opening— and that recent regulations on dust and noise suppression, and traYc management requirements which can be a condition of consent, mean that the potential impact of such developments on local communities can be much better managed than was the case in previous decades. 2.6 The draft new planning guidance notice for coal from the Welsh Assembly Government is causing particular concern to surface mine operators in South Wales. They are concerned that, given the natural topology and the distribution of population in the Valleys, the introduction of mandatory “buVer zones” could sterilise a high proportion of the remaining resource, which probably represents around 50 years of supply at output levels of 1.2–1.4 million tonnes per year, and that the guidance should result in a flexible system which respects the interests of all parties. 2.7 Opencast operators usually aim to obtain new consents in any year equivalent to the tonnage they will produce within that year, and to hold 3–5 years of this replacement tonnage at any time so as to enable them to plan production forward. Coal Authority statistics for the six years 2000 to 2005 show that total opencast output in Wales was in the order of 7.58 million tonnes of coal, while the total tonnage receiving planning consent was 4.52 million (including the 2.1 million tonne East Pit extension in 2004), giving a replacement rate over the full period of 60%. In comparison, Scotland produced 44.34 million tonnes of surface mined coal and consented 47.13 million tonnes in the same period, a replacement rate of 106.3%, while England produced 23.57 million tonnes and consented 10.79 million tonnes, a replacement rate of 45.8%. 2.8 The approval of the Ffos y fran application in 2006 took the cumulative Welsh replacement rate over seven years to 173%, but it should be noted that this 10.8 million tonne project, which could still be referred to the House of Lords, is planned to produce coal at around 840,000 tonnes per year, giving the site a 13 year productive lifespan. Without Ffos y fran or any other new planning consents, the outlook for the opencast industry in Wales (which produced 1.2 million tonnes from 6 sites employing 301 people in 206) would, on the basis of current consents, be that output would fall to 820,000 tonnes in 2009, to around 300,000 tonnes in 2012 and to zero after 2014. Further consents in addition to Ffos y fran would be needed to maintain current surface mine production levels after that date. 2.9 The Coal Forum, which was established following the 2006 Energy Policy Review, has established a Planning Sub-Group to consider how planning regulations are aVecting the UK coal industry; this will include the situation in Wales. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 42 Welsh Affairs: Evidence
3. Clean Coal Technologies 3.1 The Government’s policy on support for the development of Clean Coal Technologies and Carbon Capture and Storage (CCS) applies to the whole of Great Britain rather then to Wales alone. This policy is set out in the Government’s “Strategy for the development of Carbon Abatement Technologies (CATs) for Fossil Fuel Use” which was published in June 2005. The Strategy covers all fossil fuels, essentially coal and gas, with the emphasis on coal because of its role in secure energy supplies and its high level of Carbon Dioxide emissions. 3.2 As a part of the Strategy the Government is also supporting R&D projects under the DTI’s new Technology Strategy Programme. Since the end of 2005 some £3.5 million has been allocated to successful proposals from industry, although there were no Welsh companies amongst those bidding for this support. 3.3 At the same time the CAT Strategy was published some £25 million was announced for Government support for the demonstration of CATs, to this was added a further £10 million in the Pre-Budget Review (PBR) of 2005. On 19 September 2006 the DTI announced a call for proposals to demonstrate components of CCS with a further call intended later for the remaining £25 million. If further funding is made available this will be for the full demonstration of CCS. 3.4 Further, in the PBR Statement on 6 December 2006 the Chancellor announced a study for consulting engineers to improve our understanding about the costs of CCS. The statement said: “The Government made clear in the Energy Review that the next logical step for CCS would be building a full-scale demonstration plant, subject to it being cost-eVective. The Government is announcing today that the Department for Trade and Industry (DTI) will shortly tender for consulting engineers to ensure that our understanding of the costs of a CCS plant based in the UK is robust, and help the Government ascertain whether supporting one through a challenge fund or other mechanism would provide value for money. The details of any support package will be subject to further analysis and consultation. These actions will enable a decision in 2007 on whether to support a UK-based demonstration plant”. This announcement is a significant further step in the work which has been undertaken within the DTI over the last 18 months in assessing the feasibility of CCS as one of a portfolio of technologies for mitigating the impact of Carbon Dioxide emissions on our climate. Because industrial users of fossil fuels, such as power generators, contribute significantly to these emissions, the use of CCS is seen as having the potential to make deep cuts these emissions. 3.5 The Energy Review in 2006 followed up the work that had already been done towards the feasibility assessment and concluded that because a complete CCS plant had not yet been built and operated anywhere in the world, further work was required to firm up on the estimated costs before a commitment could be made to support a demonstration project in the UK. Work undertaken subsequent to the Energy Review resulted in the PBR statement. The DTI is therefore currently seeking to appoint consulting engineers to determine the cost eVectiveness of supporting a CCS demonstration plant and to reduce as far as possible the uncertainty surrounding the current estimates. If found to be cost eVective it is intended to launch a competition for a demonstration project the design of which will run in parallel to the cost work, and for the consultants then to assist in the selection of the successful candidate. It is not known whether the two existing coal-fired plants in Wales will participate in this process. A project to build a new cleaner coal-fired plant in South Wales which was understood to be contemplated earlier in the decade is believed to have been abandoned. January 2007
Memorandum submitted by the Centre for Alternative Technology
CLIMATE CHANGE, MICROGENERATION AND LOCAL INITIATIVES
Introduction:An Integrated Approach to Climate Change In the developed west, our physical and economic well-being is underpinned by: 1. Our hospitable, reliable climate 2. Access to abundant, cheap fossil fuels. 3. Global inequality. A sustainable future both for Wales and the UK relies on an integrated approach to meeting these three key challenges. Although increasingly familiar individually, their respective experts still work in relative isolation and their respective solutions are rarely considered in unison. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 43
1. Our Hospitable Climate Since the industrial revolution, global atmospheric concentration of carbon dioxide has increased from 260 parts per million (ppm) to around 380 ppm. A significant majority of climate scientists now conclude we have a ceiling of 450 ppm before we reach a tipping point, beyond which positive feedbacks take hold, setting us on course for abrupt, accelerated or runaway climate change. [Ref. Meeting our climate challenge, International Climate Change Task Force & The Future Starts Here: The Route to a Low Carbon Economy Tyndall Centre]. The science has revealed that the Earth’s “Carbon sinks” have been buVering us from the worst eVects of our emissions, and slowing climate change—however, with business as usual, they may be unable to continue. Atmospheric CO2 is now rising at around 2ppm a year; the tipping point will be reached in around 20 years. We suggest that this gives us around 10 years to develop & implement technologies that could start to bite into the problem. If global greenhouse gas emissions exceed the planet’s critical “tipping point”, it will set us on course for abrupt, accelerated or runaway climate change. This could entail massive agricultural losses, widespread economic collapse, international water shortages, dangerous rises in sea levels, a slowdown of the Gulf Stream, and tens of millions of environmental refugees—a complex of global catastrophes on a scale that would dwarf recent events such as Hurricane Katrina and run for tens of thousands of years. In his recent review, the former World Bank chief economist Sir Nicholas Stern’s key message stated that although dealing with global warming by cutting emissions of greenhouse gases will be expensive—about 1% of the world’s gross domestic productıdoing nothing about it will be an awful lot more expensive, anything from five to 20 times more. The review states that unless greenhouse emissions are tackled the world faces major economic and social disruptions on the scale of the great wars or the economic depressions of the early 20th century. To minimise the risk of crossing the threshold for really dangerous climate change, the world has less than a decade to reverse the growth in greenhouse gas emissions. By 2015 the world would need to be cutting carbon emissions by 4%–5% annually. This message needs to be heard, clearly understood and integrated into future planning at all levels of government and, more importantly, in every level of civil society.
2. Access to Abundant,Cheap Fossil Fuels Our unstoppable oil economies are now being halted by the immovable facts of geology. Rather than talking about when oil could “run out”, the peak oil experts predict that despite accelerating demand, global rates of production may be at, or approaching, their peak. This is not news: way back in 1956 an oil geologist named M King Hubbert predicted that U.S. oil production would peak in 1970. His superiors at Shell Oil were aghast. They even tried to persuade him not to speak publicly about it. His peers, accustomed to decades of making impressive oil discoveries, were highly sceptical, arguing technological improvements in exploration and recovery would increase the amount of available oil. But after decades of derision, Hubbert was proved right. U.S. oil production did indeed peak in 1970, and it has declined steadily ever since. Even impressive discoveries such as Alaska’s Prudhoe Bay, with 13 billion barrels in recoverable reserves, or the developments of new extraction technologies haven’t been able to reverse that trend—it is simply imposed by the geology. Peak Oil should come as no shock to the oil industry, which well understands the process of discovery, extraction and depletion. North Sea oil has peaked, as have the supplies of Mexico, Indonesia, China, Oman and Norway. The inevitable peak of world oil production is now imminent, and to compound the problem we are using oil quicker than ever before. There will be warning signs. Set against escalating demand, prices will rise dramatically and become increasingly volatile. With little or no excess production capacity, any supply disruptions such as hurricanes in the Gulf of Mexico will drive world oil markets into frenzy. As will occasional admissions by oil companies and oil-rich nations that they have been overestimating their reserves. Despite continuous warnings from oil geologists and oil economists across the world little action has been taken to deal with Peak Oil, and its inevitable price shock. Why not? Because the prevailing belief is that the free market will take care of it. However, normal economics break down when it comes to oil. In most cases if the price of something goes up, more of it is produced. But the price of oil has no eVect on how much oil there is to be found. We are currently using oil that we found 40 years ago. The industry can of course switch to remote smaller fields, containing harder to extract oil, or make oil from coal but this is neither cheap nor quick. A high price will not bring back the massive, easily accessible discoveries of the early days. In addition, free market principles forget about time lag. We cannot assume that as soon as oil becomes scarce and expensive alternative forms of generation will be ready to completely fill the gap. If the new energy technologies we require are not developed fast enough, there may well be a period of great hardship and abrupt dislocation when oil becomes cripplingly expensive and supplies intermittent.
3. Global Inequality We simply haven’t been sharing out the energy, or anything else for that matter, very fairly. One average American consumes as much oil as 35 citizens of India. Here in the overdeveloped west, we continue to use vastly more energy than is required to deliver our well being, whilst the majority world strives to provide the basic schools, railways hospitals and welfare systems which are not only a basic human right, but are a Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 44 Welsh Affairs: Evidence
vital tool in stabilising global population. Despite record increases in global economic activity, the rich are still getting richer and the very poorest are being left behind. Never in the field of human commerce has so much been earned by so many, for so few. This unfair distribution of resources has been going on for so long that the majority world is now demanding the urbanised lifestyles that we in the west have been demonstrating over the past 50 years, and they are industrialising at a rapid rate to get it. And who are we to refuse them? Competitive labour rates sweep the board, generating the economic and political power required to claim equity. New gigantic markets such as those in India and China have opened up to modern consumerism and have driven the global thirst for oil through the roof. If China were to have three cars for every four people like the US does, it would use 99 million barrels of oil a day. But the world only produces 84 million barrels a day and current production is about as high as it gets.
An integrated solution Business as usual simply does not work from the climate’s point of view; neither does it work from the point of view of meeting escalating energy demands from dwindling energy reserves, and it certainly is not working from the point of view of delivering global equity. There are solutions to peak oil that accelerate climate change, and there are solutions to global equity that exacerbate peak oil. These kinds of measures— solving one challenge at the expense of another—will not do. The key to success is to solve the three main challenges together, and do it in a way that also encompasses our personal well-being. Once we join the dots and look for the bigger picture, we find many solutions to climate change are the same as solutions to dealing with dwindling fossil fuel reserves. In fact, facing up to our oil addiction and re-thinking our diet, buildings, energy, water, work, clothing, heating, holidays and healthcare could actually increase our personal well- being, whilst also releasing resources the majority world urgently needs. We see the crisis, we have the solutions, but our almost total failure to take the actions that could avert it is making it increasingly obvious that our entire culture, indeed our entire civilisation, is locked into “fossil fuel denial”. Denial is the primary psychological symptom of addiction. It is both automatic and unconscious. Addicts are often the last to recognize their disease, pursuing their addictions to the gates of insanity as their world collapses around them. Fossil fuels have become indispensable to almost every aspect of Welsh life. It’s not just food, it’s also drinking water, home heating, manufacturing, communications and personal transport, and that’s just the start. So, how on earth can we in Britain begin to reduce our excessive and addictive use of fossil fuels in order to converge with the majority world at some sustainable global fair share? The strategy we are suggesting is one of “Powerdown plus Renewables”.
Powerdown We are energy obese. By this we mean we use far more energy than is actually required to deliver our well- being. Powerdown is the process of working towards delivering equal levels of well-being but using considerably less energy. It is not the same as energy eYciency—it goes very much further. For example, consider industrialised agriculture. We drive an oil-powered machine to plough the land, and another to plant the seed. We now depend on fertilisers and pesticides made almost totally from oil or gas, and we irrigate with water pumped by oil. We harvest the crop with oil-powered tractors and process it using fossil fuels. Finally it is packed in plastic and driven further than you ever imagined. The bottom line is that with modern industrialised agriculture, we consume ten calories of fossil fuel energy for every calorie of food we eat. Switching to a locally sourced, mostly organic, less-processed, low-meat diet could not only increase our general health and well-being, but massively reduce the fossil fuel dependence of our eating habits too. The potential “powerdown” which could be achieved through a re-think of our food alone is massive. For starters, we export some 102,000 tones of lamb to the EU, whilst also importing 125,000 tonnes of almost identical lamb from the EU. Similar paradoxes exist for most other products. Local food chains are not only more energy eYcient, they are considerably more reliable and have additional social and economic benefits. But could we still feed ourselves without so much oil? With a re-think, many people believe we could. Firstly it would require a change of diet, but that’s something we need to do in any case. Secondly supermarkets reject around 30% of vegetables because they are the wrong shape, colour or size. Further waste occurs when food is processed into ready meals. Finally, consumers bin about 30% of what they buy. If we stopped this wastage then we could be far more self-reliant in food and vastly reduce our oil consumption. Above the basic level needed to provide food, clothes and shelter, using extra energy does not necessarily make us any happier. Since the 1970s the UK’s GDP has doubled, but our perceived “satisfaction with life” has hardly changed. However, if we “powerdown”, so contracting our energy requirements, delivering these needs with renewable sources not only becomes achievable, it rapidly becomes cost competitive as oil prices soar, and significantly more reliable as fossil energy supplies falter.
Renewables It is now 30 years since the newly emerged Centre for Alternative Technology initiated a process of collaboration which led to the production of the first “Alternative Energy Strategy for the UK”. Not surprisingly, the reception from the energy mainstream varied from hostility to outright scorn. This vision Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 45
was poles apart from the majority of energy strategists at the time, who expected demand to steadily increase as it had done since the end of the war, fuelled by the new North Sea oil reserves and the promise of cheap nuclear power. Renewable energy was associated with remote “pre-national grid” systems such as the small wind and hydro schemes used by remoterural villages in the 1920s and 1930s. The national grid, managed by the Central Electricity Generating Board, was not interested in any electricity suppliers below 10 megawatts. CAT’s alternative strategy showed how an alternative approach could level oV and then reduce energy demand whilst radically increasing generation from renewable sources, thus reducing damaging emissions and preventing “resource depletion”. Three decades later, these predictions are very much on target. It has become clear that if our energy strategy is based on exploiting ever-diminishing reserves of nuclear or fossil fuels, the inevitable demand-driven improvements in extraction technology may increase yield in the short- term, but only at the cost of depleting the reserves at an accelerating rate. However, if our energy strategy is based on exploiting (renewable) flows, the same demand-driven improvements in extraction technology will increase annual yield but on a permanent basis, as the sources are naturally renewed. Wales has many of the skills required and some of the best renewable resources in Europe. The UK has an oVshore energy industry in the North Sea that has peaked and now faces decline. This is ripe for conversion to large-scale marine renewables. We know the energy is out there. Providing we have a good spread of technologies and a good spread geographically, the problems of intermittent supply can be easily overcome. It is fairly easy to predict the amount of energy we can capture over a season; we just can’t tell exactly which day we will get it. But with intelligent load management and some fossil fuels to fill the gaps we can make it work.
Microgeneration—domestic and community scale initiatives One of the key advantages of renewable energy sources is that they can work on both a national, regional, community and domestic scale.
Domestic scale microgeneration Solar water heating is well suited to domestic scale microgeneration as is solar electricity generation (photovoltaics), although this is somewhat less commercially mature. A number of biofuels systems such as logs and pellets can also deliver eYcient and reliable microgeneration at a domestic scale. CAT has strong reservations about micro-windpower systems. Although a well sited, tower mounted windturbine in an open location with a good wind resource (greater than 4 metres/second) can provide useful generation, their performance when mounted to buildings in an urban location is at best un-proven. Turbulence, or a simple lack of wind, may produce disappointing results which could reflect badly on other, perhaps more appropriate domestic scale renewable technologies.
Community scale microgeneration The increase in size of community scale renewables widens the range of viable options. The solar technologies remain viable, but with some increases in cost eVectiveness with increasing scale. Combining electricity and heat generation from bio-fuels in the same systems (Combined Heat and Power, CHP) becomes viable at the community scale, and the range of biofuel products which can be eVectively utilised also increases to include options such as wood chips as well as pellets and logs (the CHP project at Llanwddyn has yielded some useful experience). Community scale grid linked windpower generation has a much greater proven track record at the community scale (approx 50kW upwards), providing the site assessment has been done correctly. Community windpower microgeneration can either be community managed and installed (such as the Bro Ddyfi Community project adjacent to CAT) or in the form of “community shares” issued to enable part ownership of larger commercial wind farms. Either way, direct financial community benefit will serve to engage the community and increase support for the project. Microgeneration either at the domestic or community scale can deliver the following benefits: — Awareness of energy, energy eYciency and levels of consumption. — An understanding of our renewable resources. — Support for renewable generation, locally and in other places. — Direct financial benefit to householders and the local economy. — Low carbon generation to help meet climate change targets. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 46 Welsh Affairs: Evidence
In Conclusion If Wales was to try switching to renewable energy whilst still running at our current, obese demand levels, we would quickly stall. We must first powerdown, so significantly reducing our energy demand. R&D funding for this must be increased as a matter of national urgency. In addition, more resources must be made available for the technical and social development of renewable energy sources. As fossil fuel prices go through the ceiling, any “technically mature” renewable generation system will become “economically mature” very quickly. Even at present energy prices, the fastest growing energy technology in the world is grid-connected solar photovoltaic (PV), which grew by 60% a year between 2000 and 2004. Second is wind power capacity, which grew by 28%. Set against our energy challenges, “business as usual” will be all but impossible. Both our scientists and our economists now accept that we have to change and fast! There is no longer any rational economic or scientific case for un-reformed “business as usual”; Wales must integrate its science and politics into a single discipline. We are certainly near a “tipping point” in terms of climate change; we are upon a tipping point in terms of energy supply security; it seems possible that we are also near a “tipping point” in terms of public awareness and readiness to act. A “Powerdown plus Renewables” strategy is an important energy option for Wales, which is of course rich in renewable resources. We now have a chance to change everything, because everything must be changed. The search for “carbon lean” lifestyles could very well lead us back to what we really value. Dealing with these challenges holds the potential to become a driver for a change that will allow us to create the kind of Wales we actually want to live in. It doesn’t have to be a huge disaster. But getting the best out of such a massive triple challenge means using the time and the oil we have left to their very best eVect. If we wait until the challenge is really upon us before becoming serious about developing the solutions, in the ensuing chaos we may no longer be able to muster the resources required. Responsibility cannot be left solely with international agreements; it is now a job for the whole of civil society. Organisations and individuals across Wales are poorly prepared, as yet, to face the immediate and long- term challenge of reducing emissions. In order to begin creating the framework for social and political acceptance, we must first deliver a thoroughgoing change of outlook and culture within our society. Change must be now embedded in local authorities, communities, businesses, trades unions, families and individuals. Community and corporate “green champions” have a vital role to play, holding the potential to set trends, inspiring many others in their communities to take up the challenge. They must be supported as they are already embedded in their peer groups and can become powerful agents of change in the transformation of both outlook and behaviour. What is needed most urgentlyis access to a network of real life models, showing how the transformation to a low carbon economy can actually take place. This requires live demonstrations of the complex interaction between land use, planning, food production, energy, buildings, transport, waste management and all aspects of human society, on a carbon-lean basis. At the Centre For Alternative Technology, the WISEwCAT project is urgently being developed to provide training, education, support, innovation, research, and advice to engage, inspire, inform and enable all sectors of Welsh and UK civil society to help accelerate this vital transition. Before the implementation of such a radical programme of changes in patterns of energy production and consumption, it is useful to recall the profound changes that have already occurred in our energy systems during the latter half of the 20th century. The dramatic changes that have occurred in the energy systems of Wales have, broadly, been paralleled in most “developed” countries over the same period. Given the scale and profundity of the technical and social changes over the past half-century, it does not seem unrealistic to suggest that, given the impetus from across civil society, equally profound changes could well occur over the next few decades. Paul Allen Development Director CAT 20 December 2006
Memorandum submitted by Opencast Coal Committee of Wales
The Importance of the Coal Industry The Government has set four goals for the country’s energy policy, namely:
— To cut the UK’s C02 emissions by some 60% by 2050. — To maintain reliable energy supplies. — To promote competitive markets. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 47
— To ensure all homes are adequately and aVordably heated. At both Central and devolved levels of Government ministers have stated that there is a future for coal in future energy supply. For example, Malcolm Wicks (Energy Minister) made it very clear in an Adjournment Debate on 21 July 2005 that: The Government firmly believe that there is a future role for coal as part of a balanced energy policy, providing that its potential environmental impacts can be managed and that there can be a continuing role for UK produced coal in meeting our total coal requirement. The coal-fired generating sector has demonstrated its confidence in that vision by committing to install flue gas desulphurisation equipment at a number of power stations. However, the vision depends on suYcient supply of UK produced coal which means coal from both deep and surface mines (source Hansard). The Welsh Assembly Government has emphasised that its energy policy “focuses on five equally important strands; energy eYciency, renewable energy, energy infrastructure, encouraging the production of electricity from new clean coal power stations and lowering carbon dioxide emissions”. In addition, the Welsh Assembly Government “sees a long term future for coal—current price trends indicate that there could be a significant revival in the industry”. Whilst those particular views were expressed in August 2004, such comments were broadly repeated at the Welsh Energy Summit in December 2005. Thus there seems to be a clear enough view from Government that the coal industry has a future, subject to certain factors. However, is that really the ease? Such statements should be read in conjunction with those in the Energy White Paper (2003) wherein the Government suggested a far greater reliance upon renewable energy sources and gas fired electricity generation in the long term, with declining contributions from nuclear and coal fired plants. That may be the case, but until such time as capacity is that available, changes will not be immediate, and there will undoubtedly be a role for coal in traditional and new electricity generation for many years yet, certain1y over the next 20 years at least. In addition, in the document “Energy Wales Route Map to a clean, low carbon and more competitive energy future for Wales” (published by the Welsh Assembly for consultation in June 2005), it is made very clear that the future for coal lies in clean coal technology. Significantly, both coal fired power stations in south Wales (Aberthaw and Fifoots Point) have installed FOD technology to make that possible. Unfortunately, there is no specific mention of the use of coal as a fuel in industry or the household, both being important markets for Welsh coal. The current DTI consultation document “Our Energy Challenge” (January 2006) notes that coal contributes 33% of the UK electricity generating system, although in terms of total energy supply, the contribution is lower at 17%. There is no doubt that given the target for reduction in CO2 emission, coal fired energy generation is a major target for change. Reduction in coal fired generating plant is 1ikely due to the eVects of age, but more significantly due to the impact of the EU Large Combustion Plants Directive. Some estimates suggest that coal contribution to energy generation could fall to between 15 and 20% over the next 10–15 years. The eVects of that reduction will be dramatic. If that loss of contribution is borne by indigenous sources, then the eVects on jobs and local economy will be major and should not be under- estimated. The alternative sources of energy are well documented namely, gas, oil, nuclear power and renewables Apart from renewable sources, none of these are indigenous, and reliance upon supplies from other countries where political stability is not certain is a clear risk. Although nuclear power will attract some support, it is not popular in terms of its long term legacy of waste. Much is said about the importance of renewable sources of energy. They will of course make a contribution, perhaps reaching the target of 15.4% by 2015–16 as defined in the Renewables Obligation. Wind power is seen as a significant component of that total. However, all renewable sources of energy have a variable output on calm days, for example, wind power will provide no generation; photo voltaic cells (solar panels) have no output at night and output declines when levels of daylight are reduced. Wave power output (if it ever becomes economically “viable”) will vary from peak output to zero output twice a day and at diVerent times throughout the year, essentially as controlled by the lunar cycle. What must be remembered is that peak demand for electricity has to be met every day at fixed times and in recent years, UK peak demand in winter has increased significantly. More often than not, it is the available power stations including coal-fired plant which has met that demand to enable the lights to be kept on and to avoid power cuts. The UK has one of the best records in that regard.
It is acknowledged that there is a downside to continuing use of coal ie, increased CO2 emissions which make it more diYcult to meet Kyoto climate change obligations. This no doubt will be used as an argument for building more nuclear power stations to replace coal. However, it is reported that it would take 10 years to build and commissiona new nuclear power station. Inthat time, there will be continued pressure to reduce coal fired generation simply to meet CO2 targets. There is little that can be done to fill the gap with other sources unless there is even more gas burnt in power generation. Alternatively, to equal the output of Sizewell B power station for example, many hundreds of 2MW turbines would be required, which if built oVshore could occupy an area of several tens of square kilometres. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 48 Welsh Affairs: Evidence
If the indigenous coal mining industry is lost due to the changes which some may argue as necessary, it would be impossible to restart it again if the need arose. On the one hand, coalfields may well become no- go areas for future development due to constraints and delays in the planning system but of particular importance, there would be no UK miners or mining expertise remaining. This was emphasised by the representatives of Tower Colliery at the Welsh Energy Summit in December 2005, and in recent newspaper articles.
To avoid placing too much reliance on energy sources which are in part outside the control of the UK and which in part create a long-tern legacy of waste, the government should support coal. New clean coal burning technologies will produce much less CO2 per unit of electricity generated. Some thought should also be given to a guaranteed market share to ensure that the objective of the Government’s central energy policy, namely “to ensure a secure diverse and sustainable supply of energy is met, and that whilst UK coal is available and the generators continue to choose it—UK coal can continue to contribute to energy diversity and supply”. The survival of the coal industry is an essential part of the transition to an integrated clean energy system for electricity generation, transport fuels and heating based on variable renewable energy supplies.
Coal is a vital part of the local economy. Even though deep mining is still in decline with the likely closure of the last remaining pit in south Wales in the next couple of years, the industry is important for employment. The report “The Economic Significance of the Welsh Coal in Industry CardiV Business School 1997” argued that point successfully. Whilst numbers have fallen in recent years due to exhaustion of sites, there are still at least 1000 people at work directly in the coal industry, with perhaps an equal number indirectly employed. These jobs are well paid and skilled. Their loss to any community would be dramatic.
In South Wales, unlike other coalfields, a broad spectrum of customers can besupplied due to the diversity of the coal qualities that are available, ranging from high volatile steam coal to the low volatile anthracites. In order to maintain this broad customer base many of the coals that are mined are blended so that specific customer requirements are met. It is the case that supply companies in every economic sector require stock to allow continuity of supply to the markets. Coal is no diVerent and thus the industry needs the range of coals for blending to satisfy market requirements. However, unlike some other industries, it can take several years for a site to become available to meet demand, and any delay from whatever cause, aVects the supply pattern. Without reserves capable of being worked, there will be no assured supply for the markets, and no assured future for the company, for jobs, or for the communities which rely upon the coal industry. Coal companies cannot aVord to carry large stocks of coal on the surface, and must attempt to meet demand as it arises. It is therefore, a simple fact that the coal industry exists to meet the requirements of the markets. Take away the markets and there would be no need for the industry. Take away the industry and the markets would have to be supplied from imports.
It is worth repeating what Malcolm Wicks said in his July 2005 statement. He noted that “in 2000, total UK coal production stood at 30.6 million tonnes. Of that 72 million tonnes was produced by deep mines and 134 million tonnes by surface mines: the latter is not an insignificant figure. Annual coal use in electricity generation, which absorbs around 85% of UK coal production, stood at 46.9 million tonnes. In 2000, UK- produced coal supplied around 55% of coal-fired electricity feedstock and more than 40% of it came from surface mines. Four years on, in 2004 total UK coal production stood at 24.5 million tonnes—a fall of 20%— of which 12.5 million tonnes was deep mined and 12 million tonnes was from surface mines. In the same year, coal use in electricity generation reached 50 million tonnes. In 2004, UK-produced coal provided around 45% of coal-fired electricity feedstock half of which had been surface mined. He concluded that “Those figures clearly illustrate the important contribution that surface-mined coal makes to coal-fired electricity generation and hence to total UK energy needs. Energy supply is crucial to our economies, our culture and our local communities. That contribution is under threat. In recent years surface mine output in Scotland, which has no deep mines, has remained steady at around 7 million tonnes per year. Output in Wales has also remained steady at around 1.2 million tonnes per year—roughly double its deep-mined output. But output in England has declined sharply from 5 million tonnes in 2000 to 3 million tonnes in 2004. In 2005, it is expected to halve again to around 1.5 million tonnes. In 2006, on the basis of current planning permissions—let me stress that phrase—it is forecast to reach barely 600,000 tonnes. If that proves to be the case, total UK surface mine production in 2006 could be no higher than 9 million tonnes and that at a time when, despite receiving some £170 million of state aid since 20%) deep mine output is also under serious pressure” (Hansard).
There is no doubt that substantial recoverable coal resources are available in the UK (estimated to be over 1 billion tonnes). Whilst those resources will not disappear—some may well become sterilised forever due to short-term policy decisions to phase out what is an eYcient, safe and sustainable industry. For the sake of the country, that must not be allowed to happen. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 49
United Kingdom Coal Statistics
World production of coal is between 4 and 5 billion tonnes each year. Demand is increasing significantly, because of the expansion of coal power generation in India and particularly China. In 2004, total UK production was 25.1 million tonnes, with 12.5 million tonnes from deep-mined production and 12 million tonnes from opencast sites. Opencast output in 2005 was approximately 3 million tonnes in England, 7.5 million tonnes in Scotland and 1.4 million tonnes in Wales. Opencast coal production in Wales declined from 3 million tonnes in 1995 to just over 1 million tonnes in 2003, increasing since then (DTI). Very little UK produced coal is exported, usually much less than 1 million tonnes (Mt) per year. For example, exports of coal and other solid fuel amounted to 0.9 million tonnes in 2004 nearly 10% more than was that exported in 2003. The UK’s largest export markets in 2004 were the Irish Republic (48%), Norway (17%) and France (10%) (DTI). UK coal imports in 2004 rose to 36.2 Mt despite higher international prices (DTI, 2005). In 2004, 72% of the United Kingdom imports of coal came from just three countries: South Africa, Australia and Russia. A further one fifth of coal imports came from three additional countries, Colombia (steam coal), USA (mainly coking coal) and Indonesia (steam coal). Steam coal imports came mainly from South Africa (34%), Russia (33%) and Colombia (12%). Imports of steam coal from the USA were substantially higher in 2004 than 2003, accounting for 2.4% of the total in 2004 compared with less than 0.1% of the total in 2003. Imports of steam coal from South Africa in 2004 were more than double the volume imported in 2000. All but a very small fraction of UK coking coal imports came from Australia (65%), the USA (21%) and Canada (11%). Almost one fifth of coal imports were of coking coal, of which only limited amounts are produced in the United Kingdom. 41.3mt of coal were handled at major ports in 2004, of which 37.5 Mt were imports 3.6 Mt were handled at Bristol, 0.5 Mt at Newport, and 2.8 Mt at Port Talbot. At Swansea, 46,000 tonnes were imported and 111,000 tonnes exported. (Dept for Transport). January 2007
Memorandum submitted by the Transport and General Workers Union (TGWU) The Transport and General Workers Union has negotiating rights in the opencast industry within the UK and works closely with “Coalpro”, the employers association, and its aYliates. In Wales, the major opencast coal producer is Celtic Energy and the T&G has enjoyed a good relationship with the company over recent years. We have given evidence at Public Inquiries in support of planning applications submitted by Celtic Energy (East Pit extension) and Miller Argent (Ffos-y-Fran Land Reclamation Scheme). This union supports the view that “energy” is vital to a modern economy and that it must not be thought of as a short term domestic issue. The key to electricity generation in the UK is a secure, diverse and sustainable energy policy, which is not over reliant on any one fuel. South Wales currently has to import power from England and consequently has one of the highest electricity prices in the UK. This has serious implications for the Welsh economy. The American multi- national company Alcoa, has cited high energy costs as a major factor in its decision to close its Swansea factory with the resultant loss of 300 jobs. Aberthaw Power Station generates approximately 43% of the electricity for South Wales and in line with the nation’s attempt to reduce CO2 and SO2 emissions, is building an FGD plant which will enable it to meet the Government’s emissions targets for the foreseeable future. Approximately, 50% of the coal burnt at Aberthaw is imported. However, it was designed specifically to burn Welsh Dry Steam Coal, and because the installation of the FGD plant will also increase the loading of the power station it becomes more vital, therefore to maintain future supplies of Welsh indigenous coal. Coal supplied from the Welsh coalfields oVers security of supply and security against the volatility of freight rates and exchange rates and a reliance on limited port capacity. Wales has millions of tonnes of coal reserves that could be extracted by opencast methods at costs which are substantially below international coal prices. Currently the predominant operator in South Wales is Celtic Energy which directly employs 275 workers across three sites and a distribution centre. Consent has finally been given to Miller Argent, the developer of the Ffos-y-Fran Land Reclamation Scheme which has the potential to employ 200 direct workers, and up to 400 indirectly. Ffos-y-Fran will produce the Dry Steam Coal that is the ideal fuel for Aberthaw Power Station. The coal will be transported to the Power Station via an existing rail link, thereby eliminating the need to transport by road. It must be remembered that the ratio of workers employed indirectly as a result of opencast is a factor of up to two times the number employed directly. This ratio is consistent with other opencast operations in the UK. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 50 Welsh Affairs: Evidence
The valleys of South Wales are amongst the poorest and most disadvantaged regions in the UK and Europe more widely. The root cause is the cumulative impact of job losses from coal and other traditional industries. Industrial decline has been especially severe since the 1960’s, culminating in the virtual disappearance of coal mining and metal manufacturing from the valleys during the 1990’s. Today the valleys are characterised by high levels of unemployment and economic inactivity. Many of the jobs which are available are poorly rewarded and relatively insecure. Opencast mining gives an opportunity to provide relatively well paid, secure employment in areas which desperately need it. Modern opencast sites in the UK are subject, quite rightly, to strict conditions and criteria set out by the relevant authorities. This union welcomes that intervention as it ensures the developers’ accountability to the communities and to the public scrutiny which inevitably follows the industry. As you would expect from an organisation such as the TGWU, our main concern is for the health and safety of our members and the communities in which they live and work. The public perception of opencast is that it is nearly always associated with respiratory illnesses and disease. In the seven years of my association with the industry, I have not encountered a single opencast worker that has suVered such a respiratory illness as a result of working in an opencast mine. We acknowledge, however, that all workplaces, including opencast sites, have potential risks to workers. This union’s commitment to health and safety, together with responsible employers and the technological advances made by the industry, will ensure that those risks are kept to a minimum. The greatest impediment to opencast coal production is undoubtedly the diYculty in obtaining planning permission. Planning guidelines in England apply a presumption against approval for surface coal extraction unless strict conditions are met. No such presumption applies to any other form of development and specifically to any other mineral extraction. It is illogical, discriminatory and absurd given declining UK energy production. Again, extending buVer zones from the 200 metres that apply to some other minerals will sterilise large areas of reserves and could make operations unviable. Excessive fixed buVer zones are not supported by any objective criteria and discriminate against coal production. Surface coal production is being strangled by the ratcheting up of requirements across the developed administrations and amongst mineral planning authorities. This is totally irresponsible against a background of restricted and expensive energy supplies. We would urge the Government to remove the presumption against, to ensure that mineral planning authorities properly apply planning guidance and to ensure, on energy policy grounds, that a similar regime applies throughout the UK. Surface mines are also subject to Government imposed cost pressures that do not apply to the UK’s international competitors. Increases in the duty on oV-road diesel have increased costs significantly. When considered in conjunction with the climate change levy, this amounts to double taxation. Gas oil used for electricity is exempt for this reason. The Government should apply a similar exemption for diesel used in the production of coal, virtually all of which is used for electricity generation. To summarise, the TGWU would propose the following: — the presumption against opencast mining that applies in England and Scotland is illogical and discriminatory. It should be removed and certainly not introduced in Wales; — replace fixed buVer zones in planning guidance by ones which are objectively assessed on site specific criteria for each application; — the need for coal should be taken into account as a material consideration in planning applications; and — exempt opencast coal mining operations from duty on red diesel. Everything must be done to ensure the safe extraction of indigenous reserves and to minimise the amount of imported coal used in electricity generation. Imported coal means exported jobs. Approximately 50% of the UK’s coal supply is imported from countries such as Colombia and China, when it is estimated that approximately 220 million tonnes of coal reserves exist in the UK. The human cost of imported coal is sometimes incalculable. In China for example, hundreds of thousands of miners start work everyday. By nightfall, on an average day, 14 of them will be dead. Foreign coal is subsidised by unsafe working practices and a disregard for the workers’ wellbeing. The Welsh Assembly Government agrees that there is a long term future for coal. “Welsh indigenous coal is not only crucial for the continuedsecure supply of electricity to Wales as part of a balanced energy mix, but is also a major employer and key contributor to the economy”. January 2007 Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 51
Memorandum submitted by the Energybuild Group This submission addresses certain generalities in relation to national energy supply and then focuses on the type of energy environment the current energy strategy in Wales is oVering to coal companies such as Energybuild.
Overview The political map of the UnitedKingdom changed when devolved powers were awarded to Wales through the Assembly together with the establishment of the Scottish Parliament. Within the boundaries of these two countries there is a reflection of their political status by the way they contribute to the generation and consumption of power. Scottish generation covers the full spectrum from Hydro through wind power and fossil fuel to Nuclear but is relatively isolated geographically with restricted export/import capacity for electricity through the wires controlled by inter-connectors into the main UK electricity grid. Welsh energy production while having a similar fuel diversity is both geographically contiguous and integrated into the national grid with much shorter transmission distances and therefore has greater flexibility for overall power distribution. In South Wales deep sea berthing facilities allow direct access to the world supply of traded fossil fuels which, following conversion, can be transmitted into the western section of the gas and electricity networks via pipeline or the grid. The question therefore must be how to sustain the diversity in generation and consumption at commercial prices and how these prices may be aVected by various factors including social and environmental constraints. The development of any of these energy forms will continue to require political intervention either through parliamentary dictates or application of subsidy either to implement more contentious forms such as nuclear and even wind power or supporting new technology to sustain more traditional forms such as fossil fuel burning. The alternative is to allow the wholesale price of power to rise and be maintained at levels to attract private finance to new builds or new technology. The general wholesale price required to sustain this investment is most probably too high to be politically acceptable.
Coal Generation in Wales There is one dominant coal station in South Wales which is the Aberthaw Station in the Vale of Glamorgan. Owned by RWEnpower they have recently opted into the Large Plant Combustion Directive and commenced retrofitting of Flue Gas Desulphurisation during 2006 to meet the deadline of implementation of the directive in January 2008. This decision has given a new lease of life for coal companies in Wales operating in the anthracite field. If RWE had opted out of the LPCD the market for Welsh anthracite would have ultimately been limited to the added value products which in turn are derived from the volume market for indigenous anthracite created by such power plants as Aberthaw.
Due to normal supply and demand economics together with security of supply it is assumed that RWE will always operate a purchasing strategy that will utilise both indigenous and imported fuel. Politicians however will need to scrutinise these national purchasing and generation profiles to decide where dictates and subsidy will apply and to which specific fuel type/s. An example of this is the application of the two grant aid schemes for coal awarded to the coal industry in UK and in particular where this scheme has sustained production and further investment in South Wales at Aberpergwm operated by the Energybuild Group. It is the application of this investment aid and application of clean coal technology at Aberthaw Power Station that has given the board of Energybuild the confidence to place the company on the AIM market to raise funding for the continued development of the Aberpergwm Mine.
Price Fluctuators A feature of current coal supply contracts to the generators and others is the relationship of the price of world coal to indigenous supplies. Wales directly taps the world market for various types of fuel supply ranging from gas, coking coal, steam coal and anthracite. Indirectly the National Grid supplies Wales with a more diverse fuel supply produced from indigenous resource to imports of various raw materials and electricity generated from Nuclear. While logistics dictates what can be sourced from the world market into the Welsh raw material requirement the other factors are foreign exchange and political intervention into supply as seen recently with Russian gas. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 52 Welsh Affairs: Evidence
Foreign exchange is normally reflected by the status of the dollar especially in fossil fuel purchase and transportation where most flows use the dollar as the standard currency for international transactions. Latterly the dollar has weakened significantly against sterling making imports ostensibly cheaper but FOB and shipping prices tend to react by increasing although usually following a three to six month delay. However this is most likely going to change whereby world trade will adopt alternate currencies such as the Euro and the Rouble and related transactions to the dollar standard may well create some lasting distortion to traded commodities such as coal. One specific danger is that the dollar continues to weaken against sterling but the demand for Euro’s and Rouble’s sustains a high value of these currencies in the future against sterling increasing the cost of favoured suppliers such as Russia. America has proven historically it is not budget deficits or similar economic factors that aVect a currencies value but demand for the currency in question.
Indigenous Production in Wales
As a hedge against a possible shortfall in imports whether currency related or political the development of indigenous energy reserves provides a secure alternative where cost can be controlled within commercial parameters. South Wales has the only alternative source of fossil fuel being used by local industry and power generation ie coking coal, anthracite and to a lesser extent steam coal. RWE have secured a future market for current mining companies in Wales and Corus could potentially expand that market with the introduction of anthracite PCI to the manufacture of coke and development of a local coking coal mine adjacent to the works. Current production of anthracite in South Wales comes from two main sources namely Celtic Energy and Tower Colliery. They will produce over 1M metric tonne between them for power generation at Aberthaw during year 2007. All of Celtic’s production is from opencast operations with Tower production coming from the colliery at Hirwaun. In terms of volume Energybuild are currently third in line producing some 150kmt per annum to Aberthaw together with graded coal from both opencast and the drift mine at Glynneath—Aberpergwm. There are several other smaller producers operating a drift mine and opencast sites. It is understood that Celtic’s sites will continue at current levels for many years but Tower will suVer reserve exhaustion at the end of 2007. Therefore the current coal supply balance between imports and indigenous for Aberthaw is approximately 2:1 respectively. With no other projects being awarded planning or attracting financial support then that ratio would reach 3/4:1 respectively by the end of 2007. Assuming similar levels of production from current opencast operators together with the recent planning award to Miller-Argent at Ffos y Fran total opencast schemes would produce approximately 50% of Aberthaw’s future requirements. These would have to be sustained by continuing planning awards to extensions and new schemes in the future. This latter requirement has proved increasingly diYcult due to new planning guidelines and social responsibilities needing to be addressed. The major reserve blocks of anthracite remaining in South Wales require deep mining techniques to extract and the large reserve in the Neath Valley proven by British Coal prior to pit closures has attracted the government aid scheme to maintain development in this reserve for future investment. This is where Energybuild are looking to expand production to over 600kmt pa from current levels eVectively replacing the Tower Colliery levels of production. Other entrants into the deep mining sector may well increase production levels beyond current projections with schemes due to commence during 2007. While the combination of opencast and deep mine production may just fall short of Aberthaw’s total requirement it would minimise the risk of currency and political factors restricting the use of a power plant injected with longevity and compatibility to utilise an indigenous fuel source.
Conclusions Central government will eVectively decide on the diversity of generation but local factors play a major role in certain areas of the country. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 53
South Wales has a viable coal resource used by existing power and steel plants. Deep and short sea port facilities allow companies to balance the supply equation. Support of indigenous surface and underground coal production minimises the exposure to international factors restricting the supply of imported fuels. Government and Assembly support has helped to maintain the coal mining sector with the potential to exploit indigenous coal reserves in South Wales.
Recommendations
Due to EU dictates it is diYcult for the Welsh Assembly to get involved in any direct subsidy scheme but it is hoped this will continue from central government and the EU. Over recent years mine closures have decimated communities where generations of families would work “down the pit”. However the ageing population of the remaining workforce is creating a dearth of people with the required skills to immediately take up employment underground and on the surface even in the modern environment mining now operates. Training for all type of skills which can also be used in alternate industries needs to be addressed in centres linked to the industry. Detailed analysis of the logistics required to support the development of mining operations needs to be implemented with views on how this can be developed with minimal social disturbance.
Observations
On a broader note Wales can oVer the environment for the development of alternate technologies due to geographical location and type of terrain. Severn Barrage type developments are probably the ultimate but elevates debate to levels only seen by the nuclear lobby. Wind power via the grid is expensive even without transmission losses taken into account but direct connection to a consumer synchronised with alternative power sources can be eVective especially in outlying areas. Geothermal, solar and hydro parallel power sources could even result in carbon neutral generation zones. Combined heat and power plants could be a reality alongside major industrial plants but would require heat transfer infrastructure which is not common to this country. Lastly they all require financial incentive the same as main stream generation to secure a “lights on” guarantee for the future. 11 January 2007
Memorandum submitted by Miller Argent
1. Personal Introduction 1.1 My name is James Thomas Poyner; I am a director of a number of mining and associated companies within The Miller Group Limited. 1.2 I am also a director of “Miller Argent (South Wales) Limited” which is a Joint Venture Company between: The Miller Group Limited, Argent Group plc and Mr Bernard J Llewellyn. This company was specifically set up to carry out the Ffos-y-fran Land Reclamation Scheme in Merthyr Tydfil, South Wales. This scheme represents the largest authorised coal mining reserve in South Wales. 1.3 I have specific responsibility for all mining matters of The Miller Group Limited and together with my co-directors I have responsibility for the management of Miller Argent (South Wales) Limited. 1.4 I have over 40 years experience in the Building, Civil Engineering and Opencast Coal Mining Industries. My experience and expertise covers the planning, operation and management of large-scale building, civil engineering, opencast mining and land reclamation projects. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 54 Welsh Affairs: Evidence
2. Company Introduction 2.1 Miller Argent (South Wales) Limited, (Miller Argent), is the General Partner company of the Ffos- y-fran Limited Partnership and is owned by the following three companies: 2.1.1 The Miller Group Limited; the UK’s largest privately owned Housebuilding, Property Development and Construction business. The Miller Group has over 60 years experience in working large-scale land reclamation and opencast coal mining projects in the UK and overseas. The mining division of the Miller Group was the first company in the world to receive BSI Third Party accreditation to BS 5750 for the design, management and operation of opencast coal sites. The Miller Group has an annual turnover in excess of £1.2 billion and has net assets in excess of £250 million. 2.1.2 Argent Group PLC; a successful London based Property Development Company with unrivalled expertise in large-scale urban regeneration projects throughout the UK. Argent Group PLC has net assets in excess of £140 million and is a wholly owned subsidiary of British Telecom Pension Scheme, with net assets in excess of £25 billion; and 2.1.3 Cwmbargoed Mining Limited, a privately owned local company representing the interests of the Llewellyn family who have been involved in coal mining in South Wales for a hundred years. 2.2 The company Miller Argent has been specifically set up to work the Ffos-y-fran Land Reclamation Scheme. The partners of the company have been actively involved in this project since the time of the privatisation of British Coal and have already spent many millions of pounds in taking the project forward to where it is today. 2.3 The Ffos-y-fran Land Reclamation Scheme is in eVect the finessing of the third phase of the East Merthyr Land Reclamation Scheme, which has been promoted by the local authority since its conception in 1983. The scheme provides for the reclamation of over 1,000 acres of acutely derelict and unsafe land. The reclamation scheme is paid for entirely by the recovery of the underlying coal, which is to be extracted by opencast methods. No monies will be used from the public purse. 2.4 Miller Argent (South Wales) Limited has BS EN ISO 9001:2000 accreditation for the design, management and operation of opencast mining sites.
3. Scope of Evidence 3.1 I have been requested to give evidence to the Welsh AVairs Select Committee on the subject of Energy in Wales in general and Opencast Coal in particular and I am pleased to have been given that opportunity. 3.2 The purpose of my evidence is to provide the Welsh AVairs Select Committee, and other interested parties, with a clear explanation of (i) the workings of the Opencast Coal Industry, (ii) the methodologies employed, and (iii) the industry view on the energy situation, in an attempt to assist in the general understanding of the contribution the Industry has and continues to make in terms of the UK plc’s energy portfolio. 3.3 I have to stress from the outset that although I am obviously pro coal I am not against other sources of fuel from which electricity can be produced and industry can be serviced. In fact I wholeheartedly support a balanced, mixed energy portfolio. 3.4 I also do not deny the fact that global warming and climate change is a reality and that mankind must introduce new measures to combat the eVects of the industrialised world. 3.5 However, I am concerned that there is a great deal of misunderstanding in the public domain and that there is a danger that decisions germane to the production of electricity in the UK may be made that are not necessarily in the best interests of the people of the UK. 3.6 Climate change and global warming are linked and constitute a very complex and involved structure. It is far too easy to blame the burning of fossil fuels and to concentrate eVorts on legislating against fossil fuels believing that that will solve the problem—it will not. 3.7 The prime reason for mankind’s contribution to climate change is attributable to POPULTION INCREASE and consequential POVERTY. The world’s population is expected to rise from the current 6.5 billion to 9.1 billion by 2050. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 55
World Population 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 Billion People Billion 2.00 1.00 0.00
1950 1957 1964 1971 1978 1985 1992 1999 2006 2013 2020 2027 2034 2041 2048 Years
3.8 The population in the UK has broken the 60 million barrier and is expected to rise to c 68 million by 2030. UK POPULATION (ESTIMATED) Population (millions) 70
65
60 Projected
55
50
1971 76 81 86 91 96 01 06 11 21 31 Year Source: OYce for National Statistics 3.9 “Global economic growth, the primary driver of energy demand, is conservatively forecast to average 3.2% per annum between 2002 and 2030. Population growth will continue, with the world population expected to reach over 8 billion by 2030, from its current level of 6.4 billion. Fossil fuels will continue to dominate energy consumption—accounting for around 85% of the increase in world primary energy demand over the next 30 years. The forecast growth in demand will not alleviate the major concerns around energy poverty. In 2000 only one in six people worldwide had the access to energy required to provide the high living standards enjoyed in the developed world. These one billion people consumed over 50% of the world’s energy supply, while the one billion poorest used only 4%. Energy is essential to poverty alleviation. All fuel sources will be needed—but as the most abundant and aVordable of all the fossil fuels, the role of coal will be vital. The world currently relies on coal for 40% of its electricity and 66% of steel production is dependent on coal”. [World Coal Institute] Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 56 Welsh Affairs: Evidence
3.10 According to the International Energy Agency (IEA), there are currently 1.6 billion people (25% of the global population) without any access to electricity. The IEA state that without global radical new policies, 1.4 billion people will still lack access to electricity in 30 years time.
4. The Opencast Coal Industry in the UK 4.1 Coal has been extracted by opencast methods as far back as the bronze age and many records exist of coal being recovered in early Roman times, when coal was extracted where it outcropped on hill sides. 4.2 The UK Opencast Coal Industry was formalized in 1942 when the then Ministry of Fuel and Power invited a select group of Civil Engineering Contractors to recover coal by opencast methods as a wartime expedient. In December 1942 responsibility for opencast work carried out by civil engineering contractors shifted to a newly formed Directorate of Opencast Coal Production (DOCP) within the Ministry of Works and Planning, acting as agent for the Ministry of Fuel and Power which purchased and disposed of output. The industry in the UK has continued ever since, making a very valuable and significant contribution to the UK economy. 4.3 The Coal Industry was nationalized in 1947 and the National Coal Board (NCB) was formed. The NCB was split into two working sections: Deep Mines and Opencast. The opencast was run by the NCB Opencast Executive. 4.4 A subtle and significant diVerence between Deep Mines and Opencast is that the NCB never mined a single ton of opencast coal themselves. The works were always put out to tender and were always mined by the successful Contractor to a site specific tender. 4.5 However the NCB, who later traded as British Coal (1987), retained the skills and responsibility for: (a) the national identification and assessment of coal reserves including exploration; (b) land management and acquisition; (c) planning applications; (d) project management of the extraction contracts; and (e) the sale and distribution of the coal. 4.6 Coals recovered by opencast were often blended with deep mined coal in order to improve the quality of the deep mined coal. It is possible to recover coal by opencast methods more cleanly than by deep mine methods. 4.7 Opencast coal schemes were often used to bring about reclamation of brown field sites, often a legacy of previous deep mine or industrial activity. 4.8 British Coal was privatized at the end of 1994 and the industry became a number of smaller private entities. The three successor companies to British Coal acted independently and in fact in competition with each other. As a result the industry no longer had a national strategy and became fragmented and of reduced substance (in relative terms). 4.9 The successor companies to British Coal no longer let out opencast coaling contracts to other contractors, preferring to self mine. This has resulted in many firms exiting the industry as contractors, with only a few of them branching out into private opencast mining in their own right.
5. Graphs Relating to Coal Production and Supply in the UK 5.1 Total tonnage of coal consumed in the UK:
Total Coal (Indigenous & Imported) in UK 120 100 80 60 40
Million tonnes 20 0
Year 1991 1993 1995 1997 1999 2001 2003 2005 Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 57
5.2 Graph showing relationship with UK deep mined, opencast and imported coal:
80.0 Deep Mined 70.0 Opencast 60.0 Imported 50.0 40.0 30.0
Million tonnes 20.0 10.0 0.0
1990199119921993199419951996199719981999200020012002200320042005
5.3 Graph showing coal production in Wales:
Coal Production in Wales 4.0 Opencast 3.5 Deep mine 3.0 Total 2.5 2.0 1.5
Million tonnes 1.0 0.5 0.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 58 Welsh Affairs: Evidence
5.4 Coal Production in the UK from 1700 to 2006:
300 750 280 700 260 650 240 600 Manpower (thousands) 220 550 200 500 180 450 160 400 140 350 120 300 100 250
Output (million tonnes) 80 200 60 150 40 100 20 50 0 0 1700 1710 1720 1730 1740 1750 1760 1770 1780 1790 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Year
Coal Production Maximum output (1913) NCB cr e ate d (1947) Industry Privatised (1994) Manpower
6. The Issues for the UK Opencast Coal Industry 6.1 In my opinion the issues facing the UK are actually very straight forward and are set around the Government’s four long term goals: 6.1.1 to put the UK on a path to cut our carbon dioxide emissions by some 60% by about 2050, with real progress by 2020; 6.1.2 to maintain reliable energy supplies; 6.1.3 to promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve productivity; and 6.1.4 to ensure that every home is adequately and aVordably heated. 6.2 I unequivocally support all of the above mentioned goals. 6.3 Whatever decisions are taken now by Government with regard to future electricity generation they will by necessity take time to deliver, eg it will take approximately 12 years to bring a nuclear power station into production from the day it is decided to go ahead with a scheme. In many ways there is valid criticism that the UK is far too late in addressing its energy problems. 6.4 Therefore the second goal of Government—“To maintain reliable energy supplies” [H 5.1.2] is paramount. This is made even more sensitive having in mind the absolute need to replace the ageing fleet of our power stations and to provide for the increase in demand for electricity. 6.5 Whether we like it or not, the UK relies on coal for a third of its electricity, in fact over the winter months it relies on coal for half its electricity. This reliance will not change in the short to medium term. 6.6 “Coal is the fastest growing energy source in the world, with coal use increasing by 25% for the three year period ending in December 2004” [BP Statistical Energy Review, June 2005]. Coal is the preferred source of fuel for the generation of electricity throughout the world and its use is set to further increase dramatically. More coal is being consumed today than at any other time in history. Unless and until alternatives are in place coal will continue to be used in the UK otherwise the lights will go out and our economy will crash. 6.7 The decision Government has to make is what proportion of the coal the UK consumes will be indigenous. 6.8 It is already too late to argue that indigenous coal can provide our full needs—regrettably it cannot. However, the UK Coal Industry can make a significant contribution to our needs—somewhere between a third and a half of all coals consumed could be supplied by the UK Coal Industry. It simply does not make sense not to do so. If the UK Coal Industry was allowed to die then all we would be doing would be to import the coal from elsewhere in the world, which would result in exporting both the jobs and the environmental problems. The carbon footprint would be greater because by necessity we would be transporting coal Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 59
unnecessarily around the world. This would be in direct contradiction to the statement included in “Minerals Policy Statement 1: Planning and Minerals” as published in November 2006 by the Department for Communities and Local Government, wherein at page 9, item 15, second bullet point, it states: “aim to source mineral supplies indigenously, to avoid exporting potential environmental damage, whilst recognising the primary role that market conditions play;” [My emphasis added] 6.9 In the November/December 2006 issue of “The Monitor—Blue Skies Supplement”, it is stated: “There are however, two fundamental impediments that need to be addressed if the UK is to maintain its level of indigenous coal production. The country needs a commercial regime that attracts investment to access deep mine reserves, and an urgent need to change the present planning regime that discriminates against surface mining”. “The presumption against opencast mining, contained within the guidance to planning authorities, has resulted in a significant slump in consents for replacement sites and the loss of outputs and jobs. As a consequence, coal imports have soared, often from surface-mine production in countries with far less exacting environmental constraints and health and safety considerations than those imposed on UK producers”. “UK coal producers believe the annual production of around 20 million tonnes of coal is sustainable for the foreseeable future, and should become a cornerstone of the government’s energy policy”. I entirely agree with these statements. 6.10 “In 1996 it was estimated that there was around one exagram (1 x 1015 kg or 1 trillion tonnes) of total global coal reserves accessible using current mining technology. . . . In theory there is enough coal to last for 300 years . . .” based on present day consumption. 6.11 It is assessed that there is still 190 billion tonnes of coal within the UK. Of that quantity approximately 1 billion tonnes is accessible and economically extractable based on current prices and technology. 6.12 The UK cannot solve the world’s problems but it can show initiative and leadership by example. Globally coal is here and is here to stay. The world’s coal industries and governments should work together to continue to improve coal’s environmental performance by ensuring that coal is produced and used eYciently and that the technological advancements are fully and vigorously pursued. 6.13 There are three essential core elements common to all users of coal throughout the world: 6.13.1 Reduction of pollutant emissions such as particulate matter and oxides of sulphur and nitrogen (SOx and NOx) to near zero levels. This has largely been achieved and is now “oV the shelf technology”.
6.13.2 Increasing thermal eYciency to reduce CO2 and other emissions per unit of electricity generated. Major gains have already been achieved and further potential can be realised.
6.13.3 Reducing CO2 emissions to near zero levels. The development of near zero emission technologies has commenced and is accelerating rapidly. The UK must play its part.
7. Coal in Wales 7.1 There are two coal fired power stations in Wales: Uskmouth and Aberthaw. Combined they have the ability to burn c 4 million tonnes of coal per year. 7.2 Aberthaw Power Station was specifically built to burn Welsh Dry Steam Coal. It is the ONLY coal fired power station in the UK designed to burn low to mid volatile coal. There is ONLY the South Wales Coal Field in the UK that can supply coal of the correct specification that can be burnt satisfactorily without considerable blending at Aberthaw Power Station. Compliant coal for Aberthaw power station is not readily available throughout the world and currently RWE (the owners of Aberthaw Power Station) obtain most of their imported coal for this power station from Russia. Mr Putin has already made his intentions known with regard to his aspirations for control of energy sources. 7.3 The South Wales Opencast Coal Industry has the ability to supply up to 50% of South Wales’s requirement for coal for the foreseeable future, subject to planning. 7.4 The unanswered question is how much coal there is remaining in South Wales. Coal is an asset of the UK; it belongs to the country and it is regrettable that government has not quantified, with some commercial accuracy, the amount of coal that is economically viable and accessible. 7.5 In very general terms, based on current pricing and current technology, it is estimated that there is approximately 1 billion tonnes of economically viable and accessible coal reserves remaining in the UK. Of that tonnage approximately 400 million tonnes is deep mine coal and 600 million tonne is opencast. It is estimated that 20% of the potential for opencast is to be found in South Wales. 7.6 In terms of my company’s contribution, the following graph details our anticipated coal production in South Wales as at today’s date. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 60 Welsh Affairs: Evidence
Miller Argent's Anticipated Coal Output 1,600,000 Ffos-y-fran 1,400,000 Project B 1,200,000 Total 1,000,000
800,000
Tonnes 600,000
400,000
200,000
0
2007 20082009 20102011 2012 20132014 2015 2016 20172018 20192020 2021 20222023 20242025 2026 Years
7.7 The planning policy for coal recovery in Wales is basically covered under the general Minerals Planning Policy. There is no specific guidance for coal other than a DRAFT Minerals Planning Policy Technical Advice Note on Coal that was issued as a consultation document in January 2006. Miller Argent (South Wales) Limited participated in that consultation process and a copy of its response is attached to this document, as is its response to the Energy Review consultation “Our Energy Challenge”. 7.8 The National Assembly has yet to issue its findings on the Coal TAN despite enormous pressure from all sides.
8. European Commission To Back Development of Clean Coal Technologies . . . [Newsbrief issue 81— 10 January 2007] 8.1 The European Commission wants to see up to 12 large-scale demonstrations of sustainable fossil fuel technologies in commercial power generation by member States by 2015. 8.2 In a communication issued in January 2007 as part of its Energy Policy for Europe, the EC said the new policy would enable coal to maintain its important contribution to “secure and competitive energy supplies for Europe”. 8.3 The January 2007 policy communication states: “Coal and gas account for over 50% of the EU’s electricity supply and will remain an important part of our energy mix. If the EU is to achieve its long term climate change objectives, much cleaner coal technologies and a significant reduction of CO2 emission will be necessary. Furthermore, developing clean coal and carbon capture and storage technologies is crucial at the international level; it is expected that twice as much electricity as today will be produced world-wide from coal by 2030. This will in turn bring new opportunities for European export as well. 8.4 “In order to make sustainable fossil fuels a reality after 2020, the EU must establish a favourable regulatory framework for the development of these novel technologies, invest more, and more eYciently, into research, as well as take international action. The EU Emission Trading Scheme will also need to incorporate capture and storage in the future”. 8.5 The communication states that in 2007, the Commission will start work to: 8.5.1 design a mechanism to stimulate the construction and operation by 2015 of up to 12 large- scale demonstrations of sustainable fossil fuel technologies in commercial power generation in the EU; and
8.5.2 provide a clear perspective when coal and gas fired power plants will need to install CO2 capture and storage. Today, the Commission believes that by 2020 all new coal-fired plants should include CO2 capture and storage technologies and existing plants should then progressively follow the same approach. 8.6 Adds the statement: “Fossil fuels represent an important element of the energy mix of the European Union as well as in many other economies. Coal is traditionally the key fossil fuel in power generation and by far the most carbon-intensive one. Coal can contribute to the security of energy supply and the economy of the EU and the world only with technologies allowing for a drastic reduction of its harmful environmental eVects.” Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 61
8.7 “Clean Coal technologies, which increase eYciency and reduce polluting emissions, are widely used in the power generation sector of the most advanced countries today. Further progress towards novel technological solutions, which also incorporate the concepts of CO2 capture and storage in coal-based power generation, is anticipated by 2020 so that after 2020, ‘near zero emission’ power generation can be systematically used in the EU and in the world”. 8.8 It is essential that the UK plays it part in this initiative.
9. The Issues for the UK Energy Industry 9.1 The biggest problem the UK Energy Industry faces is that much of its electricity generating capacity is too old or is ageing fast. In very broad terms we have a generation capacity of c. 74 GW, of which: 9.1.1 23GW is coal fired. 9.1.2 3GW is oil fired. 9.1.3 5GW is mixed or dual fired. 9.1.4 26GW is gas. 9.1.5 1GW is gas turbines and oil engines. 9.1.6 12GW is nuclear. 9.1.7 4GW is Hydro and other renewables. 9.2 Over the next decade virtually all of the nuclear stations will be phased out, as will a number of the coal fired stations, either by age or by ability to meet new legislation. 9.3 The demand for electricity is set to rise year on year. 9.4 Plant margin (an excess of potential generating capacity over maximum demand) is crucial to the security of electricity supply, as generating units are not available 100% of the time due to breakdowns and the need for maintenance and repair. It is generally agreed that a minimum plant margin of 15% should be in place over the peak demand during the winter months in order to maintain a secure supply of electricity. 9.5 Security of supply of fuel source is now also a major parameter in determining the flavour of future generation plants. Diversification has got to be the order of the day and the three major reliable, proven, means of power generation are: gas; coal; and nuclear. 9.6 It appears now to be accepted that it would be folly to rely on gas for 80% of our future generation capacity (as was suggested earlier by Government). Given all the circumstances a dependence on gas would leave the UK vulnerable to interruptions to supply caused by: (a) political, (b) terrorist action, and/or (c) market dislocating price shocks. 9.7 Too much dependence on nuclear would present an unacceptable terrorist target and also exacerbate the so far unanswered problem of treatment and disposal of nuclear waste. 9.8 The technology does not exist to promote “Renewables” as being a major contributor. This does not mean to say that research and development should not be accelerated, but there is nothing currently out there that can be relied upon as a true alternative to what already exists. 9.9 Hydro and biomass co-firing make a worthwhile, but nevertheless small, contribution to the renewable element of the UK’s total capability to generate electricity. 9.10 In environmental terms coal is now burnt in a way which reduces its acid rain potential to minimal levels, whilst the retrofitting of clean coal technologies to existing coal fired plant and the development of Carbon Capture and Sequestration (CCS) strategies can make coal increasingly Kyoto friendly. Coal is competitive on price, it is readily available from at least 70 diVerent countries in the world (a wide variety of politically stable countries), there is a ready indigenous supply, it is easy and safe to transport, store and use. 9.11 Indigenous coal can provide the electricity needed for all our emergency services, hospitals, government etc. in times of a national emergency without the reliance on any other country, should such a situation ever exist.
10. Background and History Relating to the Ffos-y-fran Land Reclamation Scheme 10.1 In accordance with Government policy following the Aberfan disaster, local authorities were required to undertake surveys of derelict land within their areas and adopt programmes for the progressive reclamation of the identified derelict and/or unsafe land. 10.2 The former Merthyr Tydfil County Borough Council joined with 11 other local authorities under the auspices of the Monmouthshire Derelict Land Reclamation Joint Committee. 10.3 The committee identified a substantial area of derelict land that subsequently formed part of Phase III of the East Merthyr Land Reclamation Scheme (EMRS). Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 62 Welsh Affairs: Evidence
10.4 The Ffos-y-fran Land Reclamation Scheme encompasses the third Phase of the East Merthyr Land Reclamation Scheme. The essence of the Scheme is to reclaim approximately 400.6 hectares of land, 317 hectares of which are classed as derelict land (with inherent dangers) and to restore it to safe and beneficial use. The financial means and process of achieving this reclamation is by the incorporation of the extraction of the underlying strategic coal reserve by opencast methods. 10.5 The Ffos-y-fran Land Reclamation Scheme is the largest authorised coal reserve in South Wales. The scheme has been delayed by legal challenges which have cost many millions of pounds. Not only has the developer been subjected to excessive and unforeseen costs but so have the authorities who have had to defend their position and also the tax payer by way of publicly funded legal aid given to the objectors. 10.6 The scheme will provide direct employment for 200 people and will secure the employment for approximately a further 400 people in support occupations. Skills training will be available to all employees wishing to advance themselves. These are extremely important factors as Merthyr Tydfil has the highest rate of unemployment in the UK. 10.7 Over £80 million (at today’s value) will be paid out in wages to those directly employed and statistically every pound earned in a community is spent and spent again many times within that community.
11. Opencast Site Safety,Legislation and Procedures 11.1 Land reclamation and opencast coal mining sites can be dangerous places to work and visit, particularly to the uninitiated. Therefore safety is of paramount importance specifically for the people employed and the general public aVected by the operations. 11.2 The working areas are fenced to discourage trespass and warning signs are posted and maintained at regular intervals around the site boundary. 11.3 All employees undergo an induction course which addresses safety and environmental issues as well as company procedures. Safety awareness courses are held every year for the entire workforce and toolbox talks are given at more frequent intervals. 11.4 Risk assessments are carried out on all site operations and are eVectively communicated to all those involved. All drivers are individually tested before being authorised to drive any item of plant on site. Site licences are issued authorising drivers to operate the items of plant for which they have been satisfactory tested. 11.5 Each operating company has: (i) a Safety Management Procedures Manual, (ii) a Plant Procedures Manual, and (iii) a General Management Procedures Manual, all of which will be eVectively communicated, implemented, audited and controlled. 11.6 Under the Quarries Regulations 1999 it is the duty of the operator to be able to demonstrate that suYcient competent persons are employed to operate the opencast site and that everyone who works at the site is competent to do the job they do, unless it is someone undergoing training and under the direct supervision and control of a competent person. 11.7 The philosophy of continuous improvement and lifelong learning is encouraged within the industry and every opportunity is given to those employees wishing to develop new skills and advance themselves in the workplace. 11.8 There is considerable legislation governing the works to be carried out on site including but not limited to: Health and Safety at Work Act 1974, Regulations Made Under HSWA and Supply of Machinery Regulations, Management of Health and Safety at Work (MHSW) Regulations 1999,Provision and Use of Work Equipment Regulations 1998, Workplace (Health, Safety and Welfare) Regulations 1992, Manual Handling Operations Regulations 1992, Personal Protective Equipment at Work Regulations 1992, Health and Safety (Display Screen Equipment) Regulations 1992, The Supply of Machinery (Safety) Regulations 1992, Control of Substances Hazardous to Health (COSHH) Regulations 1999, Quarries Regulations 1999, The Noise at Work Regulations 1989, The Electricity at Work Regulations 1989, Confined Spaces regulations 1997, Borehole Sites and Operations Regulations 1995, Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR), The Health andSafety (First Aid) Regulations 1981, The Health and Safety (Safety Signs and Signals) Regulations 1996, Safety Representatives and Safety Committees Regulations 1977, Construction (Design and Management) Regulations 1994, The Ammonium Nitrate Mixtures Exemption Order 1967, Pressure Systems Safety Regulations 2000, The Control of Explosives Regulations 1991 etc. 11.9 The UK Opencast Coal Industry has a proven track record of high health and safety standards. James T Poyner 23 January 2007 Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 63
Supplementary memorandum submitted by Miller Argent (South Wales) Limited
Q133 Albert Owen: Mr Poyner, you said in your submission: “diversification has got to be the order of the day“ and “I wholeheartedly support a balanced, mixed energy portfolio”. How big do you think the role of coal should be in that portfolio? In my response to Question 133, I made reference to a projected “Generation Gap” that I stated will occur if no new power stations are introduced. I highlighted that 22 GW of power generation will come oV stream between now and the year 2015. I now wish to add that that generation gap will increase to 29 GW if the existing AGR Stations do not get a life extension and if my projection of 1% growth demand actually increases to 1.5% per annum. To fill that “Generation Gap” we need to build on average new generating capacity of 2.5 GW every year between now and 2015. This programme is already too late for nuclear to contribute (first new build unlikely to be on line until 2016) and the Gap is far too large for renewables. Therefore it is vital that we start new build and retrofit to existing coal plant now. Lack of government action will inevitably result in a dominance of gas generation and will lead to a further “dash for gas”, as gas stations will be the only stations that could be built quickly, regardless of costs and consequence. If Government wants to favour gas then all it has to do is procrastinate. Renewable energy sources must be developed further and indeed research and development needs to be accelerated, but in my view Wind is portrayed by some commentators to contribute much more than it realistically does and in fact can. This is very unfair to the Wind Power Industry as sooner or later they will be called to account and despite their valued contribution they will be measured to have failed miserably against the political aspirations that were not necessarily ever achievable. 1.3 In the latest DTI publication “UK Energy in Brief 2006” it records that renewables in total accounted for 4.2% of energy generated in the UK in 2005 and that Wind contributed only 5.9% of that 4.2%—in other words Wind only contributed 0.25% of the total power generated in the UK.
Separation Distances and Buffer Zones
Q159 Mr David Jones: Why should diVerent considerations arise from site to site? On reading my answer to Question 159 I regret that I omitted to mention a further consideration, which is extremely important when addressing the point of buVer zones and that is: if the proposed scheme involves the removal of dereliction and/or dangers due to past underground workings etc. ie land stabilisation, then separation distances are not relevant, but the impacts are to be assessed on a case by case basis to judge the benefits and the potential impacts. This is precisely what exists in Scotland. Miller Argent has a copy letter from the Scottish Executive which states that where the clearance of derelict or despoiled land is the case then the recommended separation distance does not apply. 1.5 Paragraph 32 of the draft COAL M TAN (January 2006) makes express provision for this wherein it states: Coal extraction may always be permitted for reasons of health and safety; or for the stabilisation of shallow mine workings or mine waste for ground remediation associated with built development or infrastructure, where coal extraction is the most sustainable option and meets the tests in MPPW.
Restoration Miller Argent wish to support the preservation of ancient woodland and can demonstrate their sincerity in this respect by referring to its own planning application for the Ffos-y-fran Land Reclamation Scheme, where it adjusted its application boundary from that promoted by the local mineral authority in order to preserve the ancient woodland at Cwm Golau. This principle should also be applied to areas of high archaeological value. Most opencast coal mines adopt a working methodology that incorporates “progressive restoration”: it does not make economic sense to do otherwise. This provides for the worked out areas of the site to be restored as new areas are being worked. Please see the following simplistic schematic sketch to illustrate the methodology. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 64 Welsh Affairs: Evidence
Schematic Sequence of Working Methodology
Initial excavation Temporary dump for (called a "Box Cut") storage of Overburden
Excavation of Cut 2
1 4
Excavation of first strip Backfill of material Subsequent Cuts Working Void (called "Cut 1") excavated from Cut 2 excavated in rotation Restoration commences
2 5
Backfill of material Final Void backfilled with Working Void Backfill of the worked out void enables the Site excavated from Cut 1 material stored in dump to be progressively restored
Note how the Working Void 3 progressively moves to the end 6 of the proposed excavation
An advantage of the above working methodology is that the people most aVected by the works at the start of the job are the ones who first reap the benefit of the restored site. Very often, as is the case at the Ffos-y-fran Land Reclamation Scheme, there is a deficit of soils on surface that are needed for the restoration works. By opencasting it is possible to recover buried soils and to recover soil making material, which can then be used in the restoration of the site. It is estimated in the case of Ffos- y-fran that to restore the site without mining would require approximately 1.5 million tonnes of soil to be imported—which is just not physically or financially possible.
Evidence Submitted by Members of the Organisation PACT My general impression was that the two representatives of PACT were actually giving evidence of objection to a specific project namely that of Margam Parc Slip rather than addressing the issue of Energy in Wales in general and opencast coal in particular. I have no personal knowledge of this particular project nor do I think it appropriate for me to comment on the specifics of it in the context of the Welsh AVairs Committee’s inquiry into Energy in Wales. Notwithstanding the above, The PACT representatives made general reference to some issues that do impact on the Welsh Opencast Coal Industry, namely: In their answer to Question 192 PACT seem to suggest that the Opencast Coal Industry is not part of the Welsh Coal Industry, clearly this is wrong. Opencast has always been a part of the Coal Industry in the UK and the fact that British Coal was privatised at the end of 1994 has no bearing on that whatsoever. All coal activities in the UK whether deep mined or surface mined are now carried out by private companies as opposed to nationalised companies. PACT suggests that the coal industry in Wales died out in the 1980s, which is also patently incorrect. In their answer to Question 197 PACT state that: “Nuisance dust is not the problem but there is no legislation at all for small particulates below PM10s”. Ambient concentrations of Fine Particulate matter (PM10) are covered by the Air Quality (Wales) Regulations 2000. The national air quality objectives (in the AQ Regulations) are (a) annual mean of 40 µg/m3, and (b) 50µg/m3 24-hour mean not to be exceeded more than 35 times in a year. Air Quality Limit Values Regulations 2003 implement the European Union’s first and second “daughter” directives on ambient air quality assessment and management. It includes limit values for PM10.
Newcastle Study In their answer to Question 198 and elsewhere in their evidence, PACT refer to the Newcastle Study, claiming that a lot of emphasis is put on this study by developers and that it [the study] tested children for asthma levels. I would firstly advise that “The Newcastle Study” is the term used for an epidemiological study carried out by The Department of Epidemiology and Public Health at the University of Newcastle upon Tyne. The study was commissioned jointly by the Department of Health and the DETR and is entitled “Do particulates from opencast coal mining impair children’s respiratory health?” (the Report). The Report is in fact the only study in the UK of its kind to concentrate on the eVects from opencast coal mining on health. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 65
Regarding PACT’s complaint that the Study is always being used by developers in response to air quality issues. The reason for this is quite straightforward and is to be found at Chapter 1 page 1 item 1.2 of the study report wherein it states: the fourth aim of the study was to inform the planning process, through the findings of the study. The Report studied five pairs of communities: 5 Communities close to operational opencast sites and 5 paired Control Communities some distance away. The Study and Control Communities were matched for socio-economic characteristics using Census data, information on urban/rural mix, the distance from the coast and geographic data. The Report details distances between the community monitor and the first point of operational activity of between 750 metres and 1,400 metres. PACT interprets this as being the distance from the site to the properties and residents the subject of the study. This is not correct; it is in fact the distance from the site to the monitors, which were generally located close to the centres of communities. All of the Opencast Study sites had residential properties close to their boundaries. The Report did not specifically test for asthma—the health outcomes covered diVerent levels of severity of illness of the respiratory tract, eye and skin over diVerent time periods. The study concluded that there was no link found between living in opencast communities and asthma. The Report summarised a number of key findings, some of which are as follows: — The pattern of PM10 levels over time were similar in Opencast and Control Communities indicating regional influences. — The cumulative or period prevalence of asthma, wheeze, bronchitis and other respiratory illness was similar in Opencast and Control Communities. — Asthmatic children in Opencast Communities did not have more or more severe asthma attacks than children in Control Communities in the past year. In their answer to Question 216, PACT incorrectly refers to the Newcastle Study as being an outdated study. The study is in relative terms still young and more to the point still relevant! Developers’/opencasters’ attention is expressly directed to the Newcastle Study in the various Planning Guidance documents relevant to England, Scotland and Wales. When the Report was first prepared it was reviewed by the “Committee on The Medical EVects Of Air Pollutants” (COMEAP) and they stated that “the study was of a very high standard.” COMEAP is an Advisory Committee of independent experts that provides advice to Government Departments and Agencies on all matters concerning the potential toxicity and eVects upon health of air pollutants. Most members are appointed as independent scientific and medical experts on the basis of their special skills and knowledge. The one exception to this is the public interest member of the Committee who is appointed for knowledge of consumer, and other, matters. At all times individuals are required to declare conflicts of interest and during discussions they may be disqualified at the Chairman’s discretion from contributing to the conclusions and recommendations of the Committee. The independent members are supported in their work by a secretariat provided by the Department of Health. The secretariat have scientific expertise that enables them to provide members with comprehensive background information and briefing papers that inform the decision-making processes of the Committee. The Department of Health’s Deputy Chief Medical OYcer, Dr Pat Troop, at the time of the publication of the Report said: “This study was commissioned against a background of very real public concern about the possible impact opencast mining might have on the respiratory health of children, in particular increased rates of childhood asthma. This very thorough and high quality study has demonstrated that there are no such harmful eVects and so should provide general reassurance to parents in areas where opencast mining is carried out at the moment or is planned at some time in the future”. Miller Argent is not aware of any other relevant authoritative evidence on particulate matter and its eVect on human health specificto opencast. We are aware of a range of interesting but not directly relevant articles/ papers on air quality generally. We await with interest to see the actual papers that PACT rely upon and have agreed to provide to the Welsh AVairs Committee, as confirmed in their answer to Question 201. However, the Department of the Environment Minerals Division commissioned Arup Environmental, Ove Arup & Partners, to investigate and assess the potential for surface mineral working to give rise to dust impacts and to identify appropriate measures for the control of such dust. The primary aim of this study was to provide guidance to the Department of the Environment (DoE), local authorities and the mineral industry on how best to minimise dust generation and the adverse eVects of dust whilst having regard to the need to maintain minerals production in an economic and viable way. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 66 Welsh Affairs: Evidence
The report is earlier than the Newcastle Study and is a HMSO publication and was issued in two volumes, it is entitled “The Environmental EVects Of Dust from Surface Mineral Workings“”. This report concentrates on nuisance dust and does not address the health impact.
Buffer Zones With reference to PACT’s comments on stand oV distances between sites and residential properties, they suggest three miles from communities as being a distance which would not interfere with . . . Since 1974 there has only been one opencast coal site in Wales (Derlwyn—Glynneath) where the distance between the site boundary and residential properties exceeded 500 metres. In eVect if a 500 metre buVer zone was introduced in Wales it would close the Welsh Opencast Industry down overnight.
Grid References PACT state that grid references are never quoted in odd numbers. In making this statement they are clearly referring to a specific quote in Celtic Energy’s Environmental papers for Margam Parc Slip—I am not familiar with this document and therefore cannot comment on the specific, but I can say that in general terms it is quite normal to quote grid references in odd numbers—it all depends of the base reference that relates to the coordinates and what degree of accuracy is required, ie working to the nearest 100 metres, 10 metres or 1 metre?
Health Impact Assessments Health Impact Assessments are not yet a legal requirement. PACT refers to the Health Impact Assessments carried out by CardiV University (CardiV Institute of Society, Health and Ethics) for the Margam Opencast Mine and claims that it “is always tried to be discredited”. I would just make the point that this study was developed under the guidance of the steering group, the majority of whose members were local residents, some of whom have been identified as objectors to the scheme and it is therefore not surprising that the report’s conclusions reflect their views. It is also our understanding that the developer of the site (Celtic Energy) was not invited to participate in the study. Miller Argent was aware of this report when it was first published and commissioned independent experts in this field to comment on the report. In the feedback Miller Argent received, a very eminent Professor, qualified and experienced in Public Health, stated: “In summary, this is, in my view, one of the most biased documents that I have ever read and which does a disservice to the serious purpose normally attached to a HIA. It is not in any way a useful contribution to judging the positive and negative aspects of the proposed development”. Additionally, Miller Argent also commissioned independent expert advice to review the document entitled “Health Impact Assessment in Wales—Its Impact On Skills, Knowledge & Action”, as produced by the CardiV Institute of Society, Health and Ethics in October 2004. The document left the reviewers with two overwhelming impressions: (a) The connection of this work with Health Impact Assessment is extremely tenuous, and (b) the other great weakness of this document is that there appears to have been no attempt to use a scientific method in generating and analysing the results. I quote some of the reviewer’s comments as follows: “The sole focus of the report appears to be on community engagement, and specifically engagement between local communities and statutory agencies. I found it most surprising that there was no mention whatever of engagement with potential developers. Making local people feel empowered in decision-making may in itself have small benefits for public health but there are far bigger benefits to be gained from financial investment within communities, leading to increased employment and improved general well-being. These appear totally ignored in the report. The other great weakness of this document is that there appears to have been no attempt to use a scientific method in generating and analysing the results. It is stated that five case studies were used (but these are not identified), and people involved within those case studies were interviewed. There is no indication that the interviews were structured or that the results were analysed in a quantitative manner which would have allowed a scientifically-based appraisal of the results. Rather, comments from the interviewees have been reported without any obvious basis for their selection and one is left with the unavoidable conclusion that the grounds for selection of quotes were simply that they confirmed the prejudices of the authors of the report. Without evidence of representativeness, this conclusion is inevitable. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 67
Whilst community engagement in Health Impact Assessments can have significant benefits, eVorts need to be made to engage with the silent majority of the community as well as the vocal members of that community. Additionally, it needs to be recognised that the more vocal members of communities often have ideas which are poorly founded in fact and there may be a role for those conducting the HIA in educating them and reducing the prejudices that they have gained from ill- informed media reports and other sources. Such ideas do not feature at all within this report despite the fact that one of the objectives was to assess the impact of HIA in Wales on knowledge. On the basis of the content of this report and that of the HIA which I have read emerging from the same source, I am seriously concerned that Health Impact Assessment in Wales is deviating very seriously from the true purposes of HIA and will not generate the benefits which can accrue from a comprehensive and scientific Health Impact Assessment process”. Miller Argent has sympathy with Celtic Energy, the developer of the Margam Parc Slip project in respect of the Health Impact Assessment, as a group of objectors to the Ffos-y-fran Land Reclamation Scheme is now active in engaging the same authors to produce a Health Impact Assessment in respect of Ffos-y-fran. The objectors have advertised in the local press and have hand delivered circulars to homes within the community inviting people who hold negative feelings towards the Scheme and the industry to participate. There has been no contact with Miller Argent nor has there been any attempt to engage with the community at large. Therefore is there any wonder why such an approach is held in contempt by developers and informed reviewers?
Miller Argent places a high level of importance on engagement with the community in developing it’s projects, including, public presentations and meetings, community flyers and a comprehensive web site. We also meet members of the local community on a regular basis to try and understand their concerns, and as in most mining projects, Miller Argent fully support and will operate a Site Liaison Committee engaging both the Local Council and community representatives.
Conclusion
Miller Argent thanks the Welsh AVairs Committee for aVording them the opportunity to participate in this very important Inquiry. We hope that the Committee will conclude from the evidence it has heard that: — It is vitally important that the UK maintains a balanced energy portfolio. This has to include coal, nuclear, gas and renewables—the lights will go out if it doesn’t. — That coal will continue to make a significant contribution to the generation of electricity in the UK and that every support should be given to indigenous coal production. — Coal should not be treated any diVerently from any other mineral and that Government should acknowledge that there a case for “need”. — That Government acts quickly and responsibly in facilitating the next generation of power generation in order to prevent the Generation Gap that is forecast. This includes streamlining the planning process—including coal projects. — That Government takes an important, if not a lead, role in the global research, development and demonstration of Carbon Capture and Sequestration (CCS) technology. — That a programme of research and development of meaningful renewable energy sources is identified and progressed. From a Welsh perspective their interests are entirely aligned with those of the UK in respect of energy considerations and the support of indigenous coal will help with: — security of supply; — provision of employment for many hundreds of people; — securing meaningful opportunities for future generations; — the retention of a critical skill base; — balance of payments; and — reclamation of huge tracks of derelict and/or unsafe land. James T Poyner 30 January 2007 Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 68 Welsh Affairs: Evidence
Memorandum submitted by Unity Power Plc
Introduction Wales, South Wales in particular, still has a very large resource of coal capable of being mined by new deep mining methods. New technology will allow coal reserves, otherwise considered to be “stranded” to be mined profitably. Coal is an energy source that can be exploited in a number of ways: 1. Opencast mining. 2. Deep mining by vertical shafts. 3. Deep mining by declines. 4. Deep mining using spiral roadways and new technology conveyor design. 5. Coal Bed Methane extraction. 6. Enhanced Coal Bed Methane extraction. 7. Abandoned Mine Methane extraction. 8. Coal Mine Methane extraction. 9. Underground Coal Seam Gasification (shallow). 10. Coal Seam Gasification (deep)—Onshore or OVshore. Other uses for South Wales coal include: A. Carbon Dioxide sequestration beds—onshore or oVshore. B. High Carbon Water Filtration Material C. Low volatile Pulverised Coal Injection for the global steel industry. D. Coking Coal for the global steel industry. Unity Power Plc is an amalgamation of Horizon Mining Limited and Chian Resources Plc, an Australian owned company. The combined company is soon to be listed on the Alternative Investment Market of the London Stock Exchange with a market capital planned around £50 million. The company’s main assets are the Unity Mine in the Neath Valley and associated railhead that currently handles Energybuild’s coal loading to rail for Aberthaw power station. The company has plans for three further new drift mines for which it is currently negotiating land rights. It has recently secured High Court permission for a judicial review in relation to The Coal Authority’s oVer of the Margam Mine Licence to Corus in preference to a wholly owned subsidiary of Unity, (Abbey Mine Limited). The company also has plans to build four small- scale Clean Coal Power stations in the South Wales area.
Exploration and Utilisation Plans for South Wales Coal In addition to Unity Power Plc, Gerwyn Williams is the Chairman and main shareholder of UK Onshore Gas Limited, a group of companies that holds Petroleum Exploration and Development licences in South Wales covering some 430 sq km. Exploration for Coal Bed Methane: — Proves up coal reserves for mining purposes. — Degases the mining area before mining takes place making mining safer. — Mining operations increase permeability in unworked seams producing more gas. Composite Energy have a similar operation in Scotland with less and lowercoal quality with great success. The gas when produced can be blended with Hydrogen to create Hythane (a patented fuel) which can be used as a very low emission, lower cost road vehicle fuel. UKOG has a joint venture with an Australian company to this eVect.
Unity Coal Mine Unity Coal Mine is located in the Vale of Neath in the South Wales Coalfield, United Kingdom. The mine is easily accessed by its own private road connecting via the A465 dual carriageway to the main M4 motorway. The Unity Mine has the potential to become a significant producer of high quality anthracitic coal. The Unity Mine, land, surface facilities, infrastructure, mining equipment, mining leases abd operating licenses are owned by the Horizon Mining Group. The mine infrastructure comprises existing declines, production facilities, blending plant and privately owned railhead which is connected to the national rail network. The current mining lease and licence are valid until 13 October 2031 (25 years). Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 69
Horizon Mining is headed by Mr Gerwyn Williams, a highly experienced private coal operator. Horizon Mining has designed a programme for the reopening and development of the Unity Mine in conjunction with Centechnology (UK) Limited (Centech). Centech is a wholly-owned subsidiary of U.K. Coal Plc, a major underground coal producer. The Unity Mine has an existing measured coal resource of 37 million tonnes (six foot seam) and an indicated coal resources of 101 million tonnes (nine foot and other seam), totalling 138 million tonnes.
Coal In Situ Tonnes Recoverable Tonnes Six Feet Seam—measured 37,514,000 24,384,000 Nine Feet Seam—indicated 58,842,000 38,247,000 Caerau seam—indicated 26,747,000 17,386,000 Peacock seam—indicated 14,977,000 9,735,000 Totals 138,080,000 89,752,000 Source: Calculations by Dr Michael Smith (CSA) based on AUTOCAD drawings prepared by and with client. Limited coal production is expected to commence in the first quarter 2007 from the reopening of the existing declines. Coal production is planned to be 2,000 tonnes per week after reaching full operational status and expected to rise to 6,000 tonnes per week from the previously mined Six Feet seam. Further development of the mine including a seismic survey and borehole drilling are planned to enable the opening up of the nine feet and other coal seams which can increase production to between 16,000 and 20,0000 tonnes per week. The increase in production to this level will require additional estimated capital expenditure of £5 million plus equipment leasing costs. Based on a mining recovery rate of 65% and production of 16,000 tonnes per week the six foot coal seam has a life of 28 years. Subsequent development from the nine foot seam could raise production levels by 100% to 150%. Annual cash flow projections prepared by CSA are summarised as follows. These projections are estimates for a full year’s production at the respective tonnages.
Tonnes Tonnes Tonnes Production per week 5,800 15,400 19,200
A long term market exists in the region from the nearby Aberthaw Power Station which can consume 3.5 million tonnes of coal per annum and is undergoing an upgrade with an estimated cost of £200 million. Other markets include the steel industry at nearby Port Talbot, possible domestic markets together with the Pulverised Coal Injection market in the global steel making industry. Horizon Mining has carried out a major site clean up, improved the standards at the railhead, commenced refurbishing the oYces and the blending plant, and clearing of the mine access drifts. The Unity Mine was previously an operating mine with coal production in the last 1990s when it was put into care and maintenance due to financial problems. The original mine development costs are believed to be in the region of £20 million. The financial problems that aVected the Unity Mine previously resulted from a combination of inappropriate mining techniques, the inability of the operator to supply coal at the correct specification and disputes between the railhead owners at that time and the mine operators. The railhead has now been purchased and is wholly owned by Horizon Mining Group. The problems with the previous mining operations have been resolved by the use of a more suitable and flexible mining programme and technology, developed by Horizon Mining and Centech. It is proposed that a mining contract will be negotiated with Centech on a production risk sharing basis with the contractor sharing production risk. An outline economic analysis, based on parameters identified by Horizon Minit Limited and CSA, show a highly resilient cash flow model capable of withstanding variation in coal price and market conditions. Horizon Mining is currently generating revenue from the railhead which is under license to Energybuild Limited and their payments cover all current overheads of the mines surface facility. Energybuild Limited is independent of the Horizon Mining group. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 70 Welsh Affairs: Evidence
Government Aid Given that Wales has substantial amounts of coal and copious amounts of Coal Bed Methane and that development of Coal Bed Methane reserves provides good geotechnical information for future coal mining operations, it is our view that some government funds ought be spent securing security of fuel supply for Wales for the foreseeable future. Government aid is really required in the following sectors: — Research into Combined CBM, underground mining, deep underground coal seam gasification and CO2 Sequestration Technologies. — Combined exploration techniques including 3D seismic. — Hythane utilisation for road vehicle fuel. — Research into liquefaction techniques so that stranded gas can be transported by tanker from remote sites. — Uprating of electricity infrastructure, (Currently overbooked by potential wind farms that may never get planning permission). — New coal tip gasification technology (USA—Brian Barrows EIN). — Improving rail infrastructure for existing and new coal mine infrastructure. — Improving port facilities for coal handling, particularly export. Other Subjects of Concern: — Preservation of mining skills—New training facilities required. — Preserving Welsh coal reserves in Wales (Corus going to Brazil or India). — Around 2000 new jobs could be created in a new mining/power generation sector. January 2007
Memorandum submitted by Celtic Energy Limited
1. Introduction 1.1 Celtic Energy Limited (“Celtic Energy”) welcomes this opportunity to present evidence to the House of Commons Welsh AVairs Committee as part of the Review of Energy in Wales. The company notes that a two volume report was published by the Committee in July 2006, with the intention of making a contribution to the national debate on energy. That publication considered all aspects of energy ranging from nuclear to renewable sources and whilst it took evidence on the importance of coal, it specifically excluded reference to opencast coal extraction. In the opinion of many in the energy producing and consuming industries, that omission was a major weakness of the review, and regret was expressed to Members of Parliament and the National Assembly of Wales. However, Celtic Energy is pleased that an additional inquiry has been arranged and that the opencast coal industry is now able to contribute to this review on matters relating to the industry in Wales.
2. Celtic Energy Limited—The Company 2.1 Celtic Energy was formed in January 1995 following the privatisation of the Coal Industry in the United Kingdom, having acquired the interests of British Coal Opencast in South Wales. Since then, the company has been the major producer of coal in Wales and currently operates three opencast sites in the South Wales coalfield with a fourth site due to commence in the near future. In addition, the company has a central washery and distribution facility which deals with most of the coal production. The company supplies coal to a number of markets across South Wales, principal amongst which is Aberthaw Power Station. Other markets include Corus Steelworks at Port Talbot, Lafarge Cement Works at Westbury, domestic consumers across Britain and exports to Europe. In percentage terms, Celtic Energy broadly supplies 70% of its sales to the electricity and industrial markets, 20% to the UK domestic market, and 10% is exported mainly to Belgium and France. 2.2 Celtic Energy produces approximately 1.2 million tonnes of coal per annum from its sites at Margam, Selar and Nant Helen. The Margam site produces high volatile bituminous coal suitable for power station blends, cement manufacture and steel production, whilst the other two sites produce low volatile anthracite used in power station blends, for industrial boilers and domestic purposes. Power station blends and graded anthracite are produced at the Onllwyn Distribution Centre, whilst coal for cement production and steel making is dispatched directly from the Margam site. 2.3 The company employs approximately 300 people all of whom live within south Wales and most within 25 kilometres (15 miles) of their places of work. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 71
3. The South Wales Coalfield 3.1 In South Wales, unlike other coalfields in the United Kingdom, the diversity of the coal qualities that are available, ranging from high volatile steam coal to the low volatile anthracites enable a broad spectrum of customers can be supplied. In order to maintain this broad customer base, many of the coals that are mined are blended so that specific customer requirements are met. It is generally the case that supply companies in every economic sector require stock to enable continuity of supply to the markets. Coal is no diVerent and thus the industry needs the range of coals for blending to satisfy market requirements. However, unlike some other industries, it can take several years for a supply site to become available to meet demand, and any delay from whatever cause, aVects the supply pattern. Without reserves capable of being worked, there will be no assured supply for the markets, and no assured future for the company, for jobs, or for the communities which rely upon the coal industry. Celtic Energy cannot aVord to carry large stocks of coal on the surface, other than for brief temporary periods and the company must attempt to meet demand as it arises. It is therefore, a simple fact that the coal industry exists to meet the requirements of the markets. Take away the industry and the markets would have to be supplied from imports. Take away the markets and the industry would perish. 3.2 Large scale opencast coal operations began in south Wales as a war time emergency measure to meet the energy needs of the nation. Since then, the opencast industry has provided vital supplies of coal to markets directly from the operating sites. It is also an historic fact that in many cases, opencast coal production assisted through blending, in making coal supplies from deep mines suitable for markets. With the almost total demise of deep mining, opencast coal has been the main source of indigenous coal for markets in South Wales. For the foreseeable future, the industry would hope to continue that supply of indigenous coal. Without it, the markets would have to seek supplies from other parts of the UK or more likely given the similarly diYcult supply pattern in England and Scotland, from outside the UK with all the attendant issues associated with job losses and economics.
4. Government Energy Policy 4.1 The UK Government has set four goals for the country’s energy policy, namely:
— To cut the UK’s CO2 emissions by some 60% by 2050. — To maintain reliable energy supplies, — To promote competitive markets, — To ensure all homes are adequately and aVordably heated.
4.2 Celtic Energy supports those four goals. It is of course in everyone’s interests to reduce CO2 emissions, but whatever is achieved in the UK must be viewed in the context of European and World-wide achievement. It would be an unnecessary penalty for the UK economy if eVorts aVect commercial competitiveness. Maintenance of reliable energy supplies is vital for the economy and recent history contains many instances of actual or potential diYculties associated with interruption of supplies. We live in a world of competition and all sectors of the supply industry must be given a fair chance. Finally, for the welfare and health of the population, adequate and aVordable heating of homes is vital. There is no reason whatsoever why coal and in particular, opencast coal should be excluded from this policy. 4.3 It is encouraging therefore that at both Central and devolved levels of Government, ministers have stated that coal will be part of future energy supply. For example, Malcolm Wicks (Energy Minister) made it very clear in an Adjournment Debate on 21 July 2005 that: “The Government firmly believe that there is a future role for coal as part of a balanced energy policy, providing that its potential environmental impacts can be managed, and that there can be a continuing role for UK produced coal in meeting our total coal requirements. The coal-fired generating sector has demonstrated its confidence in that vision by committing to install flue gas desulphurisation equipment at a number of power stations. However, the vision depends on suYcient supply of UK produced coal, which means coal from both deep and surface mines” (source Hansard). Also, The Welsh Assembly Government has emphasised that its energy policy “focuses on five equally important strands; energy eYciency, renewable energy, energy infrastructure, encouraging the production of electricity from new clean coal power stations and lowering carbon dioxide emissions.” In addition, the Welsh Assembly Government “sees a long term future for coal—current price trends indicate that there could be a significant revival in the industry”. Whilst those particular views were expressed in August 2004, such comments were broadly repeated at the Welsh Energy Summit in December 2005. Thus there seems to be a clear enough view from Government that the coal industry has a future, subject to certain factors. Most recently, as reported in the Western Mail on 4th January 2007, the Welsh Secretary Peter Hain has said in relation to Welsh Coal that “There is now a good future for coal mining, deep mining as well”. That is a very positive message for both sectors of the industry. 4.4 Celtic Energy is encouraged by such statements but retains some concern when they are read in conjunction with those in which the Government suggests a far greater reliance upon renewable energy sources and gas fired electricity generation in the long term, or even nuclear power with declining contributions from coal fired plants. The Government must accept that until such time as capacity is available, changes will not be immediate, and there will undoubtedly be a role for coal in traditional and Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 72 Welsh Affairs: Evidence
new electricity generation for many years yet, certainly over the next 20 years at least. Recent events both during high winter demand and during summer maintenance periods have demonstrated that coal has an important role in power generation. 4.5 In the document “Energy Wales : Route Map to a clean, low carbon and more competitive energy future for Wales” (published by the Welsh Assembly for consultation in June 2005), it is made very clear that the future for coal lies in clean coal technology. Significantly, both coal fired power stations in South Wales (Aberthaw and Fifoots Point) have installed FGD technology to make that possible in part. Whatever additional clean coal technology is introduced, the onus for such technology lies primarily with the energy generators rather than the coal producers, and future demand will be determined accordingly. Coal producers will not determine that demand, merely respond to it, and opencast production is best placed to do so in Wales. 4.6 The current DTI report “The Energy Challenge” (July 2006) notes that coal contributes 33% of the UK electricity generating system, although in terms of total energy supply, the contribution is lower at 17%. There is no doubt that given the target for reduction in CO2 emissions, coal fired energy generation is a major target for change. Reduction in coal fired generating plant is likely due to the eVects of age, but more significantly, due to the impact of the EU Large Combustion Plants Directive. Some estimates suggest that coal contribution to energy generation could fall to between 15 and 20% over the next 10–15 years. The eVects of that reduction will be dramatic. If that loss of contribution is borne by indigenous sources, then the eVects on jobs and local economy will be major and should not be under-estimated.
5. The Report “Energy in Wales” 5.1 Celtic Energy has read the two volume report from the Welsh AVairs Committee published in July 2006 with great interest. It was indeed a timely publication given the overall Review of Energy being carried out in the UK, there is no doubt that Wales is blessed with considerable opportunities for sustainable energy generation. Producers and consumers alike will be able to play an important role in determining how that future is mapped out, but there must be a clear understanding of what is realistic and what can be done in the short, medium and longer terms. Energy usage will not be changed overnight and current production should ensure that supplies are available whilst the changes take place. There can be no argument therefore that coal will continue to play an important role on energy generation in Wales for some time, and Abethaw Power Station will be central to that role. In that regard, the comments from Andrew Davies AM as noted in paragraph 41 of the Welsh AVairs Committee Report “there is no doubt that large-scale fossil fuelled stations will remain the mainstay of electricity production in Wales for the next 20 years” are particularly apposite. Where better than to source that coal in Wales, and by implication, in part from opencast coal sites. Shifting the burden of supply to elsewhere in the world is not a sustainable option. 5.2 Within the report, the various sources of energy are well documented namely, gas, oil, nuclear power and renewables. In the opinion of Celtic Energy Ltd, renewable sources however popular, will not answer more than a relatively small percentage of need. Declining gas resources means that in the future, there will be greater reliance upon supplies from other countries where political stability is not necessarily certain. Although nuclear power will attract some support and has been promoted in recent statements from the UK Government, it is not popular in terms of its long term legacy of waste. 5.3 Whilst chapter 4 of that report contained a review of the coal industry in Wales, it is acknowledged within the text that the details related solely to deep mining. It is regrettable that the message that Aberthaw Power Station relies on Tower for the majority of its coal has been put in the public domain when clearly it is not the case (paragraph 73 refers). In the submission to the Review from RWEnpower (Second Volume, Section Ev47 refers), it is stated quite clearly that annual consumption of coal at the power station is 2.4–3.0 million tonnes, of which a third can be supplied locally. Celtic Energy supplies a similar tonnage to that from Tower and hence makes an equivalent contribution. That contribution is expected to continue after production from Tower has ceased in 2008 as noted in the text of the report (paragraph 77). 5.4 In that same paragraph 77 it is claimed that Aberpergwm is capable of producing 450,000 tonnes per annum, even though Celtic Energy believes that such production has yet to be achieved or even approached. It is understood that RWEnPower intends to increase the usage of coal at the Power Station, and for the sake of the coal industryin Wales, there has to bea significant percentage of that increase attributed to indigenous supplies. Indeed the power company alluded to that point in its submission to the Committee when commenting on frustrations in the planning regime, adding that it did not wish to see the supply of locally mined coal drying up. Even with Aberpergwm production, there can be no doubt that a large proportion of the indigenous supply of coal to Aberthaw Power Station will have to come from opencast coal sites. 5.5 What must be remembered is that coal fired power generation has ensured that peak demand for electricity has been met in the UK. Paragraph 40 of the report notes that during the winter of 2005–06, some 50% of power was generated from coal. A significant proportion of that supply has been due to the input of coal from opencast coal sites. To lose that ability by abandoning the indigenous coal industry and the related power generation capacity is not an option which should be dismissed lightly, and is certainly not a decision which fits comfortably in the promotion of sustainable development. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 73
6. Clean Coal Technology 6.1 It is acknowledged that there is a downside to continuing use of coal ie, increased CO2 emissions which make it more diYcult to meet Kyoto climate change obligations. This may well be used as an argument for building more nuclear power stations to replace coal. However, it would take at least 10 years to build and commission a new nuclear power station once planning permission has been granted (and that in itself could take several years). Inthat time, there will be continued pressure to reduce coal fired generation simply to meet CO2 targets. There is little that can be done to fill the gap with other sources unless there is even more gas burnt in power generation. For those supporting wind power, to equal the output of Sizewell B power station for example, many hundreds of 2MW turbines would be required, which if built oVshore could occupy an area of several tens of square kilometres. The recently announced development of over 350 wind turbines oV the coast of Essex (suYcient for 250,000 homes) demonstrates the scale of what may be required. 6.2 The report from the Welsh AVairs Committee contained a detailed analysis of the contribution made by coal, and identified that clean coal technology would be vital for future energy needs. Clean coal technology is a matter primarily for the energy producers rather than the commodity suppliers. In simple terms, the purpose of clean coal technology is to reduce emissions whilst maximising eYciency of the coal burn. Using low sulphur coal will achieve some of the objectives but the introduction of Flue Gas desulphurisation at Aberthaw will be the major influence of emissions of sulphur based gases. However with CO2, there is no similar process and the objective is to reduce gaseous emissions by making the coal burning process more eYcient. Wherever the coal is sourced is essentially unimportant in that eYciency drive. There is therefore no reason whatsoever why opencast coal cannot contribute to the principles of such technology and indeed it should be the most available source within South Wales for many years to come. 6.3 In the opinion of Celtic Energy some thought should also be given to a guaranteed market share for coal to ensure that the objective of the Government’s central energy policy, namely “to ensure a secure, diverse and sustainable supply of energy is met, and that whilst UK coal is available and the generators continue to choose it, UK coal can continue to contribute to energy diversity and supply”. The survival of the coal industry is an essential part of the transition to an integrated clean energy system for electricity generation. If such a market share idea is adopted, it should not be prescriptive on the nature of supply. The market should determine the economics and the planning system should allow a level playing field so that opencast coal can compete.
7. Land Use Planning 7.1 As noted earlier, reliable energy supplies are essential. The UK Government must do whatever it can within the bounds of sustainability and environmental targets to support the indigenous energy industry. Not only does that apply to generators but also to the producers of energy commodities. The UK is blessed with abundant coal resources and whilst exploitation may be economically unacceptable in some instances, there is no justification for placing greater controls on coal mining that for other mineral activities (eg aggregates) or on other energy related developments (eg Renewable systems) on which the country relies. Planning restrictions often form the greatest hurdle to the coal industry. 7.2 The recent Barker Review of Land-use Planning recommends a new regime for major projects aimed at reducing the timescale for determination of applications for planning permission. Nuclear Power Stations and wind farms are specifically identified, but Celtic Energy would argue that all energy projects, be they generation or supply developments (including opencast coal), should benefit from this new regime, and that idea is commended to the Committee. Delays within the current planning system can mean that the time from pre-planning through application (with Environmental Statement) to receipt of a permission (if lucky) can run into years. Celtic Energy has had much experience of these delays, and perhaps two examples would be helpful to the Committee. 7.3 For its Nant Helen Extension site, the company undertook early discussions with Powys County Council in early 1995, and an application was made in February 1996. The application was exhibited to the public but disruption by a small group of protesters caused much damage to the exhibition to the extent that a police presence was necessary for the safety of company staV. Refusal by the Council in October 1996 for reasons which experienced oYcers were not prepared to defend led to a Public Inquiry in late 1997 with an approval from the then Welsh OYce in July 1998. The total time amounted to approximately three years. The delays which resulted caused considerable disruption in supply and the permanent loss of many jobs. For the East Pit East Revised application made in July 2002, the company received a recommendation for approval in February 2003, only for the application to be called-in for determination by the Assembly Government in April 2003. A Public Inquiry in February 2004 ultimately led to an approval in December 2004, some 2° years since the application was made and importantly 22 months after the recommendation for approval by the relevant local authority. The delay which resulted, caused the markets to seek supplies from elsewhere which the company has had diYculty in regaining. Whilst it is not for Celtic Energy to comment specifically on the Ffos-y-Fran case, the company can say from experience, that the planning delays which it suVered prior to the site being acquired by Miller Argent, were considerable. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 74 Welsh Affairs: Evidence
7.4 Celtic Energy supports the proper and necessary planning of land and accepts that every appropriate opportunity should be given to the assessment of the merits of each application. However, the company becomes very frustrated when apparently acceptable developments are actually or potentially thwarted by inappropriate issues and prejudice. 7.5 There is no doubt that substantial recoverable coal resources are available in the UK. Whilst those resources will not disappear, some may well become sterilised forever due to short-term policy decisions to phase out what is an eYcient, safe and sustainable opencast coal industry. For the sake of the country, that must not be allowed to happen. It cannot be said too often, that “coal can only be worked where it exists”. Surface developments which are not so constrained must not be allowed to sterilise important and economically workable coal resources. Once that happens as is the case in many parts of south Wales, the coal is eVectively lost to the nation. Even where the coal is not physically sterilised, the adoption of unrealistic safeguarding and buVer zones policies could have the same eVect. Celtic Energy would urge the Committee to resist attempts to sterilise coal either by direct or indirect means. 7.6 Land use planning embraces social issues as well as development. Coal mining is still a vital part of the south Wales economy. Even though deep mining is still in decline with the likely closure of the last remaining pit in south Wales in 2008, the industry is still important for employment. The report “The Economic Significance of the Welsh Coal Industry—CardiV Business School 1997” argued that point successfully. Whilst numbers have fallen in recent years due to exhaustion of sites, there are still at least 1,000 people at work directly in the coal industry, with perhaps an equal number indirectly employed. These jobs are well paid and skilled. Their loss to any community would be dramatic. Celtic Energy would endorse the conclusion in the Welsh AVairs Committee report about loss of skills and would add that such loss from within opencast coal mining would be every bit as severe as those lost from deep mining.
8. Coal Planning Policy in Wales 8.1 In January 2006, the Welsh Assembly Government produced a draft Minerals Planning Policy Technical Advice Note on Coal. Celtic Energy participated in an advisory group which considered details of that document and provided an extensive response to the Assembly. In essence, the company welcomed the publication as a step towards achieving the objectives stated in Ministerial and Welsh Assembly Government statements. However, although minerals are vital to society and indigenous coal has a definite contribution to make, there was regrettably, a clear message in the document that coal is being treated diVerently from other minerals not only because of its obvious characteristics and markets, but fundamentally, in terms of land-use planning and environmental considerations. That diVerence in approach is not acceptable wherever it may be suggested and there is no justification for placing more stringent controls on the coal industry than apply elsewhere. 8.2 The coal industry accepts that there should be clear guidance on development of coal resources. The Technical Advice Note stresses the importance of safeguarding and deals at length with buVer zones. Celtic Energy supports the concept of buVer zones and separation zones in principle, but is most concerned that incorrect or inappropriate application of general policy could have a terminal eVect on the industry and hence cause the overall energy policy to fail. The distances which are identified are based on a false premise, namely that opencast coal workings have a greater impact than hard rock aggregates quarries. There is no scientific evidence to support that conclusion. Hence there is no basis for a greater width for a buVer zone for coal than hard rock quarrying. To define any buVer on the basis of parity with other areas of the United Kingdom or political view is totally unacceptable to the Industry—they must be defined according to facts and local circumstances. 8.3 The Technical Advice Note promotes that Health Impact Assessment and Social Impact Assessment should become part of every coal related application. Whilst Celtic Energy accepts that proper assessment of such matters is an important aspect, the impact on development costs could be huge, to the point of making schemes uneconomic. Such studies can be open-ended and can become embroiled in subjective assessment. No other industry appears to face such a prescriptive measure. 8.4 The Advice Note contains abundant reference to community involvement in coal development from the initial discussion of proposals to the actual managementof certain aspects of development. Celtic Energy has no objection to the proper procedures being adopted and would indeed support dialogue and exchange of views where this would ultimately lead to a more acceptable proposal, and a complaint free site. However, that support does not extend to promotion of unreasonable limitations on legitimate activity simply because an individual or a group of people do not accept an approved development. 8.5 Celtic Energy would expect Mineral Planning Authorities in Wales to implement the advice contained in the Coal Technical Advice Note consistently, because without that there would be no anticipation of success. However, the current arrangement of Mineral Planning Authorities does not give the industry confidence in that regard. The expertise which is available is limited and the commitment to strategic minerals planning is frequently well-disguised or missing altogether. Celtic Energy would suggest that the 1996 Reorganisation of Local Government in Wales has failed to meet the objectives of strategic planning, and minerals development has suVered accordingly. Larger authorities with greater expertise and co- ordination may well be the better way forward. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 75
9. Environmental Standards 9.1 Celtic Energy operates all of its sites on the basis of balancing the need to achieve commercial aims with the need to minimise the eVect of its activities on the environment. All company activities comply with relevant statutory and regulatory requirements and all land holdings are managed with due regard to the environment. Day to day site operations are undertaken to ensure that dust and noise emissions are kept to a minimum in compliance with statutory controls with all plant being maintained to the highest standards. In planning sites for future development, the company prepares the most comprehensive Environmental Statements which take account of all relevant matters which may influence or be aVected by the development. 9.2 Once coal extraction operations have been completed, sites are restored in accordance with agreed schemes with a strong commitment to protection and enhancement of scientific and ecological value of the land, commitment to increasing environmental quality and working in partnership with local community and specialist bodies. Sites are managed for lengthy periods, sometimes extending to 20 years from completion of operations. The company is proud of what it has achieved at sites such as Park Slip, Nant Helen, Derlwyn, Incline Top, Kays & Kears, Brynhenllys and Selar. 9.3 Celtic Energy would not only commend its record to the committee but would invite members of the Committee to see at first hand, the record of restoration and aftercare.
10. Community Issues 10.1 Celtic Energy is well aware that there is much opposition to its developments wherever they may be proposed. The issues are common to each site and are no diVerent from those experienced by other members of the industry whether they be based in South Wales, North Wales, England or Scotland. In all cases, the opposition appears to be based on the alleged eVects of the sites as they develop and the often repeated claims of damage to health, damage to the environment and damage to personal property as a result of site activity. Whenever claims of eVects upon health are made, Celtic Energy undertakes the necessary investigation. Independent research has been unable to prove any direct link between opencast operations and the health of nearby communities. Workers within sites would be the most at risk of such eVects and yet research has shown no adverse health impacts amongst them. Celtic Energy concludes that claims of health impacts by opposition groups in the public are unfounded, and yet they persist. Celtic Energy and the industry at large would welcome some support on the conclusions of the research. 10.2 Environmental damage may be regarded as loss of habitat, loss of landscape or loss of amenity. No development can take place without some eVects upon the land. Celtic Energy adopts a policy at all times which seeks to minimise such eVects, and where mitigation measures are capable of addressing those concerns, they are proposed and implemented. In every proposal put forward by the company, full assessments are made of the environmental impacts of development and the most experienced and respected consultants and experts are engaged to assess the implications. Regrettably, no matter what the findings of such assessment and analysis, those wishing to oppose opencast development will not believe the industry view and will always find a reason to continue their opposition sometimes quoting spurious examples of environmental damage. Sometimes that opposition will extend to identification of species which have never been near a site let alone aVected by such a development. However, not all environmental impacts are negative. There are many examples of improvements in landscape and amenity as a result of opencast coal workings, and new habitats can be created so that they are every bit as good as, if not better than, those lost temporarily. 10.3 Allegations of damage to properties as a result of blasting are also commonplace. At no time has any blasting operation undertaken by Celtic Energy caused any proven case of damage to property. At all times, vibration levels are kept well below the threshold of nuisance which in turn is well below the threshold of cosmetic damage, eg cracking of plaster. 10.4 A real and relevant community issue which is often dismissed by those opposing development is the contribution which opencast coal sites make to the local economy. Jobs created by sites are filled by skilled workers from the general locality. Whether they be from the immediate neighbouring village is not an issue in the modern society where mobility and flexibility are key factors in employment. The fact is that all those employed by Celtic Energy live within South Wales and hence the economy of the region benefits. Supporting jobs in service industries and suppliers add considerably to the overall number so that whilst there are approximately 300 in the company, some 500 people rely upon Celtic Energy for jobs in South Wales. 10.5 Some people claim that communities suVer some cumulative impact as a result of opencast development over a lengthy period. Coal like any mineral, can only be worked where it exists. Communities made no issue of long-life coal mines and yet opencast developments are seen in a diVerent light. Communities make no issue of factories and related industrial premises which support jobs whilst having a significant visual impact. Opencast sites should not be singled out for unreasonable claims of impact simply because of prejudice. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 76 Welsh Affairs: Evidence
11. The Role of Statutory Environmental Bodies 11.1 The Countryside Council for Wales (CCW) is the Government’s statutory adviser on sustaining and conserving the nation’s natural beauty, wildlife and the opportunity for outdoor enjoyment and its inshore waters. CCW is consulted by the opencast coal industry on future proposals and the comments which are provided are taken on board in every instance. Frequently, that advice can help to shape the proposal particularly if a feature of habitat can be protected by adopting a change to the proposal. The industry has a good relationship with CCW throughout operations and has worked with oYcers to provide new features of interest ranging from geological exposures associated with opencast coal extraction which have become or have the potential to become Sites of Special Scientific Interest. In addition, the industry has created new Nature Reserves and areas of local nature conservation interest to enhance the localities. Again oYcers of CCW have been involved at all stages and have commended the industry on its approach. 11.2 The statutory role of CCW also embraces commentary on applications for development via the local authority consultation. Sometimes that process will lead to recommendations that the development may be acceptable providing that suitable conditions are attached to any planning permission. On other proposals, the result of such consultation may be an objection or recommendation for refusal. Clearly, Celtic Energy does all it can to achieve the first outcome, but the company does understand the basis of objection in most instances, providing that the necessary data are provided. It may well be the case that the objection is a matter of opinion or scientific judgement which can be debated. However, it seems on occasions that the opencast industry is the focus of attention on issues which have no relevance, such as alleged impacts on areas remote from its sites. For example, questions are asked of the industry about matters which CCW oYcers should have ample knowledge given the statutory role which they play. The industry is happy to assist but there is always a cost. At some point that cost has to be judged as unreasonable. There are instances where too much emphasis is given to possibility of impact rather than probability. 11.3 The Environment Agency (the “Agency”) has wide responsibilities for managing the environment, including enforcing pollution legislation, overseeing the management of waste, water resources and freshwater fisheries and reducing the harm caused by flooding. Celtic Energy always consults the Agency prior to submitting applications for development and takes account of comments made. Similarly, the local authorities will consult the Agency on application received. 11.4 The opencast coal industry understands the role of the Agency but has reservations about how that role is practised. For example, the Agency appears to be oblivious to the timescale of development frequently taking weeks and months to respond to contacts. That can be very frustrating for the industry, particularly if there may be a request in that response for information which may involve survey work. Celtic Energy has often concluded that there is a lack of co-ordination in the Agency responses. StaV appear to be spread over many oYces and the resulting correspondence may not always be complete. Even at meetings, there is a clear impression that there has been no previous contact between relevant staV, some being unaware of any site history. In several instances, the responses from the Agency have been in error with potentially serious and expensive consequences arising. Given that the final response from the Agency may well determine the recommendation to a planning committee, the concerns which have been expressed above are all too obvious in their impact.
12. Conclusions 12.1 Celtic Energy believes that opencast coal can play an important role in the future supply of energy in Wales. That role will only be possible if energy policy allows it to happen. There must be some clear guidance on that issue so that the coal producers can have some certainty. 12.2 Achieving that belief in a future for coal will of course require energy producers to use indigenous coal as a matter of choice. That choice will be greatly assisted if there is an opportunity to make that coal available economically and with a reliable supply. Celtic Energy can meet those two controlling factors provided that the planning and political systems allow. 12.3 The planning system should be capable of dealing with mineral development applications in a consistent manner. There are no fundamental diVerences between opencast coal extraction and hard rock quarrying and planning policy should not distinguish one from the other simply because of alleged impact or prejudice. 12.4 The minerals industry has the right to expect that staV involved in development control should be qualified and experienced enough to understandthe issues associated with minerals development. As a result of reorganisation of local government, too many small authorities exist without any such expertise. There is a case for larger strategic authorities, one of which could arguably embrace the South Wales coalfield area. A similar argument may be made for the North East Wales coalfield, although without any experience of that area, Celtic Energy cannot comment in detail. Celtic Energy would argue that strategic local authorities could result in a better system of consultation which may speed up the planning system. 12.5 Celtic Energy would urge the committee to conclude that opencast coal extraction is not necessarily an unwelcome development and each case should be treated on merit. There is no case for opencast coal development to be restricted by inappropriate controls and prejudice. The facts do not support any such argument. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 77
12.6 Finally, Celtic Energy would promote the word balance in dealing with energy policy. At least that would allow opencast coal to have a chance to influence future energy supply, and for the Wales economy to benefit accordingly. January 2007
Memorandum submitted by Protecting and Conserving Together (PACT)
Introduction PACT would like to thank the Welsh AVairs Committee for inviting us to attend and give our evidence. PACT is a residents group opposed to any further extension of Parc Slip/Margam opencast site. The residents of this area have endured an ongoing process of opencast coal mining in our beautiful valley since 1948. We have made a substantial contribution and environmental sacrifice towards the national need for energy already. New opencast mining sites or extensions unless they are restoring brown sites (500 metres from all homes) are unacceptable, particularly in areas that have countryside amenity and biodiversity, rural landscape and right of way footpaths that would be threatened. PACT is supported by many hundreds of people (and ongoing). We feel that our Human Rights, future, peace of mind, health and well-being, environment, quality of life and amenity are all under threat from opencast activity.
Key Points
1. Opencast and The Environment We are now in the millennium of 2007 and although we are very grateful to be asked to attend the Welsh AVairs Committee meeting that is discussing opencast and the environment, we are sadly aware that all the problems that opencast destruction brings are still with us and potentially on going. In spite of a new Coal Mtan and Environmental Strategies, Wales is still being blighted by opencast as it still has the prerogative. The issues we are concerned with have been addressed for decades as the following quotes indicate. The House of Commons Energy Select Committee 1987 paragraph 4 stated: “Opencast Mining is one of the most environmentally destructive processes being carried out in the U.K. The sites are among the most ugly examples of the ravages of industrial exploitation”. In 1991 Labour produced a document “Open cast coalmining—too high a price?” which promised an 11 point plan, including a commitment to change the law and practice in relation to opencast. Tim Sander, FOE said in 1997: “The lives of thousands of ordinary people are being made a total misery by opencast coal mining. ‘Moonscapes’ have been created on their doorstep and concerns about health impacts are commonplace. In some areas, house prices have fallen by thousands of pounds. The Government must take action now to end this highly damaging smash and grab industry”. Opencast applications in Wales have yet to be faced down with an ultimate refusal. After a long drawn out process, and many reasons for refusal, permission is granted.
2. Environment and Health The environment is an integral part of human life, the quality of which plays a critical role in human health. “Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.” WHO’s definition of health “Human health is very closely linked to environmental qualityas the etiology of most of the human diseases beingrelated to the status of the livingenvironment of man. According to ststistics, 25% of all preventable illnesses are caused by detrimental environmental factors” UNEP United Nations Childrens Fund WHO 2002 Carwyn Jones, Minister for Environment, Planning and Countryside, when launching the document “Our Environment—Our Future—Your Views” for public consultation stated in The Welsh Assembly Government, 6 July 2005: “Our environment is a key asset to Wales. It underpins our health, our economy and our quality of life, but there is mounting evidence that our actions are pushing natural systems beyond their ability to cope.” Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 78 Welsh Affairs: Evidence
Dr Tony Jewell Wales’ Chief Medical OYcer Western Mail 28 December 2006 Health News: “Health Improvement and narrowing of inequalities between social groups will be achieved primarily by economic, social, environmental and public health policy rather than by medical or other personal health care services”. OYcial figures show that people living in the most deprived parts of Wales have a death rate twice that of those in the most aZuent areas of the UK and the gap is widening. The deprived areas of Wales tend to stretch along the South Wales Coalfield. In this light although coal can only be extracted where it exists, there is a strong argument against opencast methods as they are the most environmentally destructive, release emmissions and provide few jobs and degrade the local amenity for countryside appreciation, access, physical exercise and quality of life. The Human Rights Act 1998 “Right to Life” now places the impact of the eVects of a planning decision into consideration. Third party objections to a planning application must now be taken into account by Planning Authorities, because of the right of the individual to the enjoyment of their property, and to the human rights consequences of not acting against severe environmental damage. It is widely accepted that Wales has a history of ill health and chronic conditions as a legacy associated with its industrial past. We cannot alter the past, but policies on energy must now protect the environment and health of the people of Wales by adequate legislation, that does not neglect to accept the link between environment, health and well being. “By 2026, we want to see our distinctive Welsh environment thriving and contributing to the economic and social wellbeing and health of all of the people of Wales.” Environment Strategy for Wales 17 May 2006 Minister for Environment, Planning and Countryside, Carwyn Jones AM. We need to start now with protection from on going opencast exploitation in unsuitable areas with lax environmental controls that allow it to continue. People in Wales living near coal are not being treated the same as those living elsewhere, eg Scotland has a presumption against opencast and 500 metres buVer zones. “a minimum distance of 500 metres between communities and site boundaries, unless significant land improvements such as the clearance of dereliction is involved”. Scottish Planning Policy Opencast Coal Our health problems and opinions are overlooked in favour of allowing the operations of private, ruthless opencast companies to continue. There are numerous organisations that are concerned about health inequalities in Wales. The following are examples: Win GriYths, chairman of Bridgend’s Bro Morgannwg NHS Trust and former Bridgend MP, said the former mining areas in the Valleys suVered from a legacy of industrial disease and poor housing. He said: “I think firstly the historic issue of traditional heavy industry such as mining is a big factor in ill health”. Mr GriYths said work was being carried out through Health Challenge Wales to break the cycle of bad health. “Health survey paints a bleak picture for Wales” 2 January 2007 David James, South Wales Echo. Eight of the ten worst ill health regions of the UK have been named as Welsh local authorities, including Neath/Port Talbot and Bridgend. Merthyr is the unhealthiest. All but one of the Welsh areas are within the South Wales coalfield. Neath/Port Talbot and Bridgend residents are at present fighting a controversial opencast extension in their green wedge. A Health Impact Assessment on the proposed extension of opencast at Parc Slip/Margam has been completed by CardiV University www.whiasu.wales.nhs.uk, which highlighted the resident’s real experiences of impacts and concerns over the present site. These are the recommendations: “1. Individual health and wellbeing should be the prime consideration and, where there is doubt, the precautionary principle should be applied. 2. The economics of coal extraction should not override the basic human rights of the local population. 3. Sustainable development and a move away from reliance on fossil fuels should be an underlying aim. Also: The loss of amenity,visual impact, nuisance dust, noise and pollution are strong arguments against further open casting close to this community. And: On balance, there is suYcient uncertainty regarding the negative health impacts to apply the ‘precautionary principle’, which would not allow opencast mining to proceed in such close proximity to residential areas”. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 79
Although the HIA was a comprehensive representation of the publics views of the present opencast operations and its ongoing aVects on them, the findings that were concluded by the Welsh Health Impact Assessment Support Unit, Led by Dr. Alison Golby and Caroline Lester, were rejected by Neath/Port Talbot Planning Committee who stated: . . . “Having taken careful regard of all the available information and assessments, it is considered that any justifiable reason for refusing consent on health grounds cannot be sustained” (NB Bridgend’s Environmental OYcer, Mr. Philip Stanton, contributed to the HIA, but the Environment dept of Neath/Port Talbot declined to become involved in the process of gathering information). The HIA, Parc Slip/Margam showed the likely eVects of an extension to Margam opencast mine on major policies and programmes related to Health and well being. They were summarised in a table (to be found on Pages 10 and 11 of the HIA).1 “Residents believe that going ahead with the proposed opencast mining extension would destroy large areas of countryside, exposing the community to pollutants, in order to extract fossil fuels. This would tend to undermine many Welsh Assembly Government and UK wide policies relating to health and well being, especially in its likely impact on physical activity through the consequent loss of a natural outdoor amenity for at least another 10 years, if the proposal goes ahead”. www.whiasu.wales.nhs.uk The existing Parc Slip site has already removed amenity for exercise, and has also encroached on the existing facilities with unpleasant, noisy, visual, dusty and overdominant impacts. “Physiotherapists want to see health inequalities become a feature of the past. To ensure that length of life is more equitable across the UK, the CSP is calling on everyone involved in the delivery of healthcare to place more emphasis on ill-health prevention strategies and put the removal of inequality at the top of the health agenda.” Chartered Society of Physiotherapy (CSP). Source: Life expectancy at birth 2002—2004, OYce for National Statistics, Mortality Statistics Team. Employment rates taken from Annual Population Survey for GB April 2004—March 2005 Taking into account Wales’ recent unhealthy statistics, it is now time for serious action to improve the inequalities that are widening. Firstly, health should be the main compulsory requirement at planning decision level when opencast is being considered. The legislation should genuinely protect health, the environment and communities instead of a handful of jobs. The social and health costs to the Welsh people cannot be justified particularly in the case of opencast that removes the community’s green spaces and countryside amenity, quality of life, breathing spaces and outdoor exercise areas. Because the mining industry has contributed to Wales’ present legacy of ill health, the way forward is to accept that opencast mining is not an asset to the physical environment or health and well being of the Welsh communities that are vulnerable. Evidence of the health hazards posed by air pollutants is clear and unambiguous. The EU Commission’s own analysis—by the Clean Air For Europe programme—concluded last year that because of air pollution 370,000 people die prematurely every year in the EU. Further eVects of air pollution on the environment include eutrophication, acidification and ground-level ozone formation. When Local GP’s or Heads of local schools provide data of health incidents that may be related to opencast mining, it is considered not to be of any valid scientific evidence, but no provision is made by authorities to undertake relevant scientific studies. Eg In relation to the Parc Slip/Margam Opencast, head teachers of six schools collected data, concerning inhaler dependence of pupils. The results indicated that the proximity to the site influenced the number of asthma cases. (Table 3 “Schools by distance from opencast and presence of asthma medication in school” (Spring 2005) www.whiasu.wales.nhs.uk, Dec.nphs page 24) Comments from the focus groups (Health Impact Assessment on the proposed extension of opencast at Parc Slip/Margam) indicated a wide variety of Health and well being problems that people believed were directly related to the opencast mine. The health eVects associated with living close to a source of pollution are ignored or denied, because of the implications for the economy (mainly private industry’s commerce) or possibly for litigation. (Eg from opencast mine surface workers or even the local communities). Recently, the Welsh Assembly Governments First Minister, Rhodri Morgan has rejected calls for annual targets on greenhouse gasses saying that yearly emissions cuts would be “disastrous” for Wales. 29 November 2006 Western Mail. This is an example of how industry is given priority over health and the environment in Wales. What is the point of these jobs if the Welsh nation is too sick to even go to work!!!
1 Not printed. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 80 Welsh Affairs: Evidence
If coal mining is recognised as being a contributing factor of the legacy of ill health in Wales, then it should be accepted that this ongoing opencast situation needs remedy, as there are other choices for the coal industry. Council head of planning for Neath/Port Talbot GeoV White stated on the approval of an opencast site despite widespread protests that: “It is considered that the economic benefits of additional jobs, maintenance of existing jobs, the production of indigenous coal, . . . outweigh any impacts the development may have”. Mr White concluded: “It has to be recognised that any application for opencast coaling will impact on the environment”. South Wales Evening Post, Tuesday 17 May 2005.
3. Legislation, Monitoring and Thresholds We feel that the laws that are in place are balanced towards industry by not protecting the environment and health of the local population adequately. There should be improved legislation so that unsuitable controversial applications (such as the Margam extension) would be discouraged at the outset. This would then protect the communities from the anxiety and harassment of having to run opposition campaigns in desperation to stop their lives being ruined. Although statements and strategies are made by the Welsh Assembly Government and Central Government to protect the environment, quality of life etc, the actual measures are inadequate when it comes to facing down opencast applications. The opencast companies always manage to get their licence in the end however unsuitable and whatever the level of public outcry. The public are consulted on issues eg WAG coal Mtan but their opinion is ignored in favour of the private opencast company’s wants (buVer zones of 350 metres instead of 500 metres which is more popular with the public.) The guidelines, threshold for monitoring for all impacts are far too high. People experience problems and are told that everything is well within acceptable limits and government guidelines. It is obvious to the people aVected that the arrangements exist in order to give the industry respectability and future consent, but are totally inadequate to protect the residents. The equipment used to monitor is inadequate and it is too expensive to monitor noise pollution on an ongoing basis. The population at Parc Slip/Margam is being exposed to a cumulative impact of unacceptable health damaging, environment despoiling dust, noise and pm pollution over an unacceptably long period of time. There is no place for opencast in the last fragment of our beautiful countryside. The price paid in losing such a wildlife rich, beautiful landscape is immeasurable in terms of the eVect on health and well being of the communities adjacent to it. It would be a loss that continues throughout and beyond our lifetimes. Important evidence is emerging on particulates from various sources (Harvard University “Short-Term Exposure to Air Pollution May Trigger Heart Attack in At-risk Patients”, and The Swedish NGO Secretariat, 10 April 2006 Particles and health, “Dust in the Wind: The Challenge of Fine Particles”). What is evident is that the eVects of cumulative ingestion of PM 2.5 particulates has definite eVects on health, especially respiratory and cardio-vascular related disease, resulting sometimes in mortality. Every microgram of pollution reduced adds three years to life span. (PM 2.5’s are still not measured in the U.K.!!) People living near to opencast sites are breathing in dust each day, as well as low grade diesel fumes. As far as monitoring the site at Parc Slip/Margam for the various impacts, the local population have no faith in the system. When residents complain about anything they are told that it is all within Government Guidelines acceptable limits, and monitoring requirements. This is of no comfort to the people who are experiencing the actual and very real impacts. This whole situation does nothing for the morale of the locals whose voice is being dismissed.
4. Balance? (i) As part of the planning requirement there is supposed to be a balance between environment and industry. There are examples and issues when this is impossible to achieve where opencast is concerned. A balance cannot be achieved when opencast rips open greenwedge countryside and its bio-diversity and amenity, destroying a countryside rural view and replacing it with a bleak industrial moonscape. This is particularly unacceptable in some areas because they are in no need of regeneration or restoration of any kind, (unlike brown sites), and that during the duration of the opencast operations the landscape and countryside character will be industrialised and removed and quality of life of people will suVer. (ii) Also, if it is any way viable or feasible to extract the coal via alternative methods of production, a balance therefore may be achieved between industry and the environment. This would also provide immediate benefit to the local communities via skilled jobs and provide greater numbers of more general employment, and wider benefits.This would be a move towards using coal in a more sustainable approach. Opencast coal mining in green areas close to communities can never be sustainable. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 81
Sustainable development has three essential pillars—wealth creation, social development and environmental sustainability. Primarily any developmental activity in the economic sphere has to be based on the objective of meeting the needs of the people and creating wealth, which raises living standards. But that must be in a way which is both environmentally and socially acceptable. More linkage should be made to climate change, energy eYciency and renewable energy sources, such as tidal and solar. We feel that the powerful opencast lobbyists, for example the TGWU, refer to “energy crisis” to justify ongoing consent. Opencast takes place at expense of environment and public health. Enterprise minister, Andrew Davies AM has researched renewable energy sources and commented: “Renewable energy is critical to our future energy needs and Wales is leading the way”. Western Mail, 18 October 2006 It would be a much needed boost for Wales if, for once, we did lead the way. A massive investment and commitment is needed to achieve this vision. The truth at the moment is that Wales is seriously lagging behind the UK, and is suVering from an impoverished health and environment, particularly in the South Wales areas. (iii) There is not a balance between the opencast industry and the environment/health at present because the local people have to provide hard and fast evidence on all issues to support their objections, whereas the planners can make claims with no evidence or statistics of any consequence. Eg Parc Slip/Margam opencast, the economic argument and other examples such as dismissing environment and health concerns that are real to the people aVected). (iv) It follows that it is necessary to evaluate the impact of every industrial eVort in the form of industrialisation or otherwise on the society at the beginning as well as at intervals, so that every member of each group, class and section of the society is not put to unreasonable hardship and shares the benefit equitably. Those days are gone when it used be accepted that for benefit of majority members of the society a portion of it had to suVer. An application by the then National Coal Board Opencast Executive finally met with refusal by the then local authority, Mid Glamorgan County Council, in 1991. But the Planning Inspector at the Public Inquiry consented to yet another opencast extension—Park SlipWest. Why is there still open cast coal mining in our valley eleven years after the Park Slip West Site commenced when the Planning Inspector mentions in various places in his conclusions that the opencast would only last for a limited time, together with two years restoration a total of seven years. The company were due to finish their present time extension on 1 January 2007. They are still working, with no licence, and yet the councils are allowing this. This is not a balance. (v) In the planning process an applicant can appeal following a refusal but the objectors cannot. In general the objectors are the people who are trying to protect the immediate environment. Therefore, a balance between environment and industry is impossible in this example. (vi) In 2001 Celtic Energy received a £3 million government aid package to protect jobs at its opencast sites. (12 April 2001 UK Business Park 1995–2006). This might have contributed to an imbalance between industry and the environment in the Margam/Parc Slip opencast area, because subsequently CE proceeded to negotiate the purchase of greenwedge agricultural land , farms and outlying buildings for proposed future opencast extensions (even though they had promised to sink a deep mine and stop all opencast procedure by 2004) at highly inflated prices that prospective rural dwellers would have diYculty meeting. No subsidies should be given to private opencast companies by Westminster or WAG unless it is to restore or reclaim previous workings or derelict sites. No government should assist opencast mining when it is in an unnacceptable green area, such as Parc Slip/ Margam, and one that is being constantly extended both in time and with further extension plans causing grave cumulative impacts for the environment and local communities. (vii) If time extension after time extension after time extension is allowed to continue and withdrawals and resubmissions, there cannot possibly be any balance between the opencast companies wants and the needs of the environment, health and local communities aVected by the opencast. The whole process is stressful to the people opposing it and makes them feel that all their hard work, in spite of whatever strength of argument they put forward, will still be rewarded by yet another application being allowed. It is obvious that this ongoing tactical and dubious approach benefits the company and is assisting them to achieve their longer-term goals eg at Parc Slip/Margam the present workings were promised as the last in the area and any further mining would be via deep or drift mines. We become frustrated with a system, which seems to allow moving of the goal posts in an attempt to negotiate consent. The councils know this as the residents all attended meetings when the promise was made. At the time many people were against any further mining in the area, particularly open casting, and verbal objections were made. The decision was swayed by this promise. They also stated at the time that they would not ask for further opencast because the topography was unsuitable and there were valuable landscape and areas rich in biodiversity. The idea that extraction provides valuable employment in rural areas is a myth. It is well documented that workers, plant and machinery are just moved from one site to another. This should not be used as an argument to promote planning approval. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 82 Welsh Affairs: Evidence
We know first hand the physical consequences of that time extension with its further encroachment, destruction, increased noise, dust soil stripping impacts, growing over dominance and industrialisation of our countryside, amenities and features.
5. Planning Procedures and Policies The local environmental amenity can be dismissed and devalued by the planning process but the local people, who are already living with opencast (eg Parc Slip/Margam) know what impacts they endure and what features they feel are important locally to retain.They are necessary and important to communities even if they are insignificant and irrelevant on a national scale. Opencast coal working is generally incompatible with green belt areas, and current or past workings should not be seen as a precedent for future working. “Where a proposal is likely to prejudice the underlying objectives and overall integrity of a green belt (for example, through its prominence in relation to main communication routes, its impact on good quality environment or its prominence in the landscape) and these impacts cannot be mitigated satisfactorily, planning permission should be refused”. Scottish Planning Policy (SPP) 16: Opencast Coal Public Consultation Empowering and involving the people to address issues can bring perfection to the system at large. Empowering can also bring down the poverty of the people around the developing projects. Poverty is not only a lack of income but also lack of voice, empowerment and governance. At the moment, health is not a primary consideration in the planning process and although HIA’S are now contributing to planning applications for opencast, their findings have not yet been taken on board or recognised as reasons for refusal. (Evidence conclusion Neath/Port Talbot 2006 on the Parc Slip Margam Opencast extension application). It seems that the Health Impact Assessment on the Parc Slip/Margam opencast extension and the Coal M. Tan (Mineral Extraction) can be used and referred to as little or as much as the councils decide when planning decisions are taken on opencast. Where does that leave the communities living close by? We believe that the excuse that is always given to us by council oYcials when we complain, that the source of the pollution cannot be specifically identified, is NO excuse to allow even more industrial pollution in the form of opencast extensions to be placed in an area that is already vulnerable, having high cases of serious illnesses. This is evidence that the people are experiencing a lack of empowerment in decision making on issues that directly aVect their community. In the same conclusion the amenity of the community’s countryside open space public footpath walks (84 and 85) were not considered to be important by the planning committee as grounds for refusal, even though both residents and the Ramblers Association value the use of these features as part of their healthy lifestyles. Existing guidance permits siting of overburden bunds in immediate proximity of communities. Such bunds are arguably one of the most damaging aspects of open casting with regard to air quality and loss of amenity. (There should be a 500 metres buVer zone with no scope for reduction).
6. Clean Coal Andrew Davies AM has stated that coal-fired power still has a role to play as part of the UK’s energy mix and it’s important that the latest environmental technology is used. If it is possible that coal can be burnt cleanly, attention must turn to the issue of how the coal is won. No matter how cleanly it is burnt, opencast coal is still dirty coal. The negative spin oV side eVects of opencast operations includes eVects on health, through air particles and noise, the disruption of communities and the loss of amenity through environmental degradation. The detrimental eVects on industries, such as tourism, farming, electronics and the housing market, all of which require a clean environment, need to be properly assessed when opencast planning applications are being considered. It is unacceptable if opencast operators use “The Energy Mix” and “Clean Coal Technology” as support for their controversial applications. The term clean coal is being mis-used by the opencast companies in spite of its source of production coming from dirty surface mine operations. The Energy Review may see a case for coal in the future energy mix, but opencast companies should not be assissted in their applications by allowing them to use such a misleading and impossible term as “CLEAN COAL”.It is not acceptable because the clean coal message gives the impression that the environment, health etc will neither be harmed, destroyed or polluted. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 83
7. The problems associated with Opencast It is widely acknowledged that the opencast coal industry has a very severe impact on both local communities and the environment. The impact from opencast will vary from site to site in terms of the type and degree, but listed below are some of the most common problems: — Dust (both nuisance and health related). — Diesel emissions ( Diesel emmissions are known to be detrimental to health, especially industrial diesel). — Blasting (ground vibration and air overpressure). — Noise (including impact from large earth moving machinery). — Visual impact (including the massive scarring. Bunds are arguably one of the most damaging aspects of open casting with regard to air quality and loss of fine views. Stockpiling is also oVensive). The mature features created by centuries of natural processes are lost forever. — Community life. The very perception of an area can be altered aVecting both residents and outsiders.The duration of an opencast mine coincides with a major part of a generation of children and their schooling and often longer, and it is likely to colour the perceptions a child will have over what the countryside is like and what it is used for. Entire generations suVer the depreprevation caused by the physical abuse of the local landscape, countryside heritage, buildings, trees, habitats, archaelogical sites and many other reminders of the areas history and peoples experiences are lost for ever. The image of a place to the outside world is often badly damaged and as a result can cause property devaluation. Residents generally never accept the ongoing inpacts of the site and are made to feel that it is often inevitable. There is evidence of a lack of trust and confidence in certain operators. — Special interests and loss of amenity. These may well be threatened by opencast: (a) Popular footpaths and rights of way. (b) Agricultural land uses as well as leisure and tourism. (c) The impact on health, particularly respiritory disorders, are of increasing concern. (d) Use of the open greenwedge for exercise (green gym, breathing spaces). — Cumulative impact. Unacceptable detrimental cumulative impact on local residents and the surrounding areas. The ongoing expansions of opencast mining has a negative impact on people’s morale. It is visually depressing, and the constant removal of the local amenity and countryside causes stress, anxiety and a feeling of helplessness and impotence.
8. Sustainable development and coal We should be moving towards protecting our quality of life without damaging the quality of life of other people both now and in the future. The argument that local damage is a small price to pay for all the good of having a small supply of electricity is unnecessary as there are choices other than opencast mining, for example renewables tidal and solar, or less damaging methods of using coal supplies. It is clearly known that fossil fuels produce greenhouse gas emissions and will cause problems with global warming and meeting the Kyoto Protocol targets. How can further opencast fit in with the targets aimed at reducing global warming and promoting sustainability and renewable energy, as opencast cannot be a form of clean coal technology? The opencast companies boast about benefits and care given to the local communities, but if this were truly the case, they would use the money they donate to stop further opencast and help fund underground projects. No-one, not even large private opencast companies, has, or should have, the right to act in a way that is spoiling the life chances of future generations by producing dust and pollution. It is time to put the health of people and the future of our planet before profits. The Sustainable Development Action Plan of the Welsh Assembly Government states that: “. . . our current way of living is unsustainable and that real progress cannot be gauged by standards of economic growth alone”. The Welsh Assembly have said that they are committed to pursuing a sustainable future for Wales. Rhodri Morgan has set out a vision for Wales in 50 years’ time as a high-skill economy and a centre of renewable energy. He conceded that Wales had changed enormously since he was a schoolboy in 1956. (First Minister outlines vision for future 3 November 2006 South Wales Echo). He can see that Wales is more than an image of just coal and sheep. Rhodri Morgan says Wales is growing up into a “small, smart confident nation” (Nation moving forward on road to maturity 21 December 2006 Tomos Livingstone, Western Mail) “after years of navel-gazing, and more seriously, a tendency to blame the nation’s ills on someone else (usually England)”. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 84 Welsh Affairs: Evidence
We are perhaps not quite at the point where we are Mr Morgan’s small, smart confident nation. But it is surely a target that we can all aspire to meet. Within Rhodri Morgan’s vision, Wales needs to move away from being the ill health statistic of the UK which is demoralising for the Welsh people. Further opencast should not be forced on communities against their wishes as it contributes nothing to their quality of life or confidence.
9. Opencast coal resources It may be that coal can only be mined where it is found but this should not mean everywhere coal is found it should be mined. It could be preserved for future generations or utilised in other ways other than opencast coal mining to safeguard Wales’ vulnerability. Opencast mines should never be permitted in green countryside amenity that may not be of national importance but is of significant value to the locality. The needs of the local people are best known to them. They should be able to decide the importance of their existing amenity to their quality of lives, which also influences their health and well-being.
10. How much damage can be tolerated? Friends of the Earth say that the best judges of this are the local people themselves. Everyone has the right to a decent environment. The importance of the environment is also recognised in the Welsh Assembly Governments “Environment Strategy for Wales” Document (2006) where they state the need for high quality local environments for people and communities across Wales and how it aVects their quality of life. They state that: “Well maintained green space is also important for our local environment. It encourages bio- diversity and benefits the whole community by providing a place for children to play and for people to meet”. Bearing this in mind, no new developments or expansions to opencast mining should take place unless there is a clear benefit to the local community and its environment. Opencast coal working is generally incompatible with green belt areas, and current or past workings should not be seen as a precedent for future working.
11. “Restoration” and Soils’ Reinstatement, Aftercare Bond and Financial Guarantees The term “restoration” is profoundly misleading, and it should only apply to land that is already derelict. It is the people who must live with the result of restoration and, although being far preferable to the opencast that was there before it, the unspoiled landscape is treasured for precisely the way it is and for its contrast with the urbanisation that is all around us. The communities know the areas as they used to be and, whatever may be said for its biodiversity, they know it not to have the appeal of what was before. Restoration is usually disconnected and out of harmony with the area. The opencast companies only have to look after the reclaimed land for 10 years. This is an ideal length of time for conifers to grow, but not long enough for a deciduous tree such as an oak to grow to any stage where it will not be vulnerable. So-called reclaimed land usually remains stripped of its once abundant plants and wildlife. Why do the opencast companies refuse to contribute more than a small fraction of the ever-increasing cost projected for any reclamation of the land devastated by them for their profits? Often restoration funds for existing operations fall well short. Authorities cannot speculate on whether suYcient funds will be available to fully restore sites once coaling has ceased. Restoration funds do not guarantee full restoration. The opencast companies plan to replant and restore worked land, but, as has been seen at other sites, this is not successful. Dr.Chris Walley, Senior geologist, University Innovation Centre, Swansea stated about Parc Slip nature reserve which is restored opencast land: “I have personally made a number of visits to the (BC) ‘flagship’ restoration site of Parc Slip at Aberkenfig in Mid Glamorgan and have been very disturbed by the fact that far from maturing, the site now appears to be undergoing decay. The quality of the soil is extremely poor and the planted grasses are rapidly being overtaken by rushes. Bird life is minimal. Although adequate work has been done on the whole subject of coal field restoration, what seems to occur is that the rock material brought up to the surface in the course of excavation, far from being inert, is strongly mineralised, particularly with iron compounds. Under natural conditions, these high mineral levels would be reduced by leaching over tens of thousands Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 85
of years, ultimately allowing a relatively rich soil to develop. However, under current restoration schemes, these minerals percolate into the soil, in quantities which allow only a limited flora to develop. This high level of mineralisation gives rise to a rapid cementation in which hard, impermeable soil layers form which are prone to water logging”. Restoration is never completely successful. Talking of Parc Slip The Wildlife Trust said that: “fields were not provided with a deep enough layer of soil in the restoration process” http://www.wildlifetrust.org.uk “The reserve has extensive conifer plantations to the east . . . There is a much older plantation to the east of the reserve’s butterfly ride, which is of wildlife interest. It’s history is unknown, but, along with the butterfly ride grassland, it escaped opencast destruction” Parc Slip Nature Reserve www.wildlifetrust.org.uk In comparison many areas designated for opencast destruction are rich in biodiversity.
12. Biodiversity
Biodiversity is the natural capital upon which our lives depend. It is key to the quality of life of every person, and this is increasingly being recognised across society. Membership of wildlife and conservation organisations is one measure of the importance people attach to biodiversity. But biodiversity can also benefit businesses. Many businesses attach great importance in being seen to be “green”. Wales’s aspirations for a future improved quality environment in which to live and work are largely dependent on biodiversity. Opencast causes irreparable damage to the environment and its biodiversity. The whole geological structure of an area is changed, and thriving ecosystems that took hundreds or thousands of years to evolve are lost forever.
Potential EVects
The obvious potential negative eVects of mineral extraction are that habitats are lost, together with the species that they support. They can be lost through direct removal by excavation, or indirectly through some of the environmental impacts for example, dust generated during excavation, processing or storage can settle on sensitive habitats and have an adverse eVect. Changes in the water regime (surface water or ground water) may cause some habitats to dry out or others to become flooded. Noise may have no influence on some species but may aVect others eg otters. These potential impacts cannot be easily mitigated if at all in order to minimise the negative impacts on biodiversity. During previous workings at Parc Slip, trees and species of flora and fauna were uprooted and relocated , but this proved to be unsuccessful in many instances. Some examples: “Parts of the field . . . once supported marsh fritillary (butterflies), but the species did not travel”. “Semi-mature native species (including oak and birch) were transplanted, rescued from opencast operations at Parc Slip West onto the nature reserve. However, the majority were largely unsuccessful”. “One of the largest fields (wildflower meadow), adjacent to the northern wetlands, was seeded in 1990 with mixes of native flowers and grasses, with an original plan was to either cut for hay or graze by sheep. This did not prove to be successful, mainly because the fields were not provided with a deep enough layer of soil in the restoration process”. The next reference indicates how the areas that are superior in biodiversity features are the ones that were not touched by opencast operators. “There is a much older plantation to the east of the reserve’s butterfly ride, which is of wildlife interest. Its history is unknown, but along with the adjacent butterfly ride grassland it escaped opencast destruction”. http://www.wildlifetrust.org.uk/wtsww/parc-slip.htm Our naturally beautiful and diverse areas of woodlands, solitary ancient trees, hedgerows, fields and rivers and also farming livestock need to be protected from any further disturbance and destruction from opencast mining. We need to help everyone enjoy wildlife especially near their homes. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 86 Welsh Affairs: Evidence
Air pollution and biodiversity Air pollution is a serious threat to the diversity of life. In general it can be said of the eVects of air pollutants on biological diversity that: Lower life forms are usually more aVected than higher forms. On land, plants are more aVected than animals. By nature plants are less able to adapt to sudden changes in pollution levels and climate than animals, which can often migrate or change their source of food. A wide survey of the literature (Tickle et al 1995) gave evidence of more than three times as many terrestrial plants being aVected by pollution as animals. It worries us that particulates and pollutants that fall on our plants and farm crops are also ingested by the farm animals or by the local population who buy the farm produce. Many potential human health risks can come from inhalation of airborne particulates and ingestion via food chain pathways.
Ecosystem responses Whether and in what way ecosystems are aVected by air pollutants depends especially on the nature, concentration and time of arrival of the pollution, but also on the existing status and nature of the particular habitat. In general it can be said that: Some environments are particularly susceptible. Ecosystems are likely to be most at risk if they are on substrates with a low buVering capacity, and/ or receive occasional, heavy doses of pollution, and/or contain key species that are vulnerable.
Mammals Despite much evidence of a build-up of heavy metals and sulphur in mammals in polluted areas, the main eVects have been due to disturbances in the food chain for species such as otter.
Rare and Endangered Species If you look up the meaning of the word “endanger” in the dictionary you will read something like “to bring into or expose to danger or peril” . . . this is the position that many species of animals and plants are in today due to opencast mining. The accelerated endangerment and extinction occurring now is being attributed to urbanization, mining, and pollutions as well as other factors.
Habitat Loss Loss of habitat or the “native home” of a plant or animal is usually the most important cause of endangerment. Nearly all plants and animals require food, water, and shelter to survive, just as humans do. Some plants and animals are highly specialized in their habitat requirements.
Disturbance The frequent presence of man and his machines may cause some animals to abandon an area, even if the habitat is not harmed. Disturbance combined with exploitation is even worse. Habitat protection is the key to protecting our rare, threatened, and endangered species. A species cannot survive without a home. Our first priority in protecting a species is to ensure its habitat remains intact. Whilst important in their own right, species are also critical for maintaining the fundamental balance of ecosystems.
Legal status Under the Conservation (Natural Habitats, &c) Regulations 1994 which implements the EC Directive 92/ 43/EEC in the United Kingdom and it is an oVence, with certain exceptions, to: 1. deliberately capture or kill any wild animal of a European protected species; 2. deliberately disturb any such animal; 3. deliberately take or destroy eggs of any such wild animal; 4. damage or destroy a breeding site or resting place of such a wild animal; 5. deliberately pick, collect, cut, uproot or destroy a wild plant of a European protected species (as in Selar Neath); 6. keep, transport, sell or exchange, or oVer for sale or exchange, any live or dead wild animal or plant of a European protected species, or any part of, or anything derived from such a wild animal or plant. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 87
With Celtic Energy, moving and working so close to the ancient woodland and river, the disturbance is self-explanatory as is the destruction of breeding sites, for example of owls. These are two examples of how the law is being ignored when it comes to opencast. Why should the removal of coal have precedence over biodiversity and environment? This is particularly unacceptable because there are alternatives and choices other than surface mining. But although it is important to protect endangered flora and fauna and to relocate them where possible when opencast threatens, surely it is more important to protect the local population from any suspected hazards and even use the precautionary approach. It is not so easy to relocate and protect people!!! We deserve a future vision and regulations that puts the health, well-being and quality of life of people before the profits of the private opencast coal industry.
SSSI Opencast could have significant eVects on hydrology, particularly where they result in degradation or loss of water dependent habitats or downgrading of a water body, and this could aVect SSSI‘s that those water bodies flow into. Until fines are realistic, they will not be a deterrent and provide a real impetus for managing and avoiding pollution risk. Using Celtic Energy, Parc Slip opencast ongoing extension as an example of a failure to protect the areas streams and rivers with their own monitoring of water pollution, the pollution was discovered only because of the vigilance of local fishermen who reported the incidents. At Bridgend Magistrates Court on 21 April 1998 the Company pleaded guilty to a total of four charges brought in respect of two separate pollution incidents which occurred at the Park Slip West Opencast Site, Kenfig Hill on 13 July 1997 and 26 August 1997 respectively. On each occasion polluting matter in the form of suspended solids had entered the Nant Iorwerth Goch (also known as the Nant Graig Y Aber) in breach of the conditions of a discharge consent. The fines imposed were as follows: 1. Section 85(6) WRA’91(13.7.97)—Aˆ £8,000. 2. Section 4 SFFA’75 (13.7.97)—Aˆ £1,000. 3. Section 85(6) WRA’91 (26.8.77)—Aˆ £8,000. 4. Section 4 SFFA’75 (26.8.77)—Aˆ £1,000. In addition the Company was ordered to pay costs of Aˆ £1,558.50.
13. Leisure and Tourism Where a local authority is actively promoting an area for tourism or seeking to attract new investment to the locality or safeguarding particular sites for such investment, opencast proposals could pose a threat to those prospects. Such considerations could equally apply to the retention and expansion of existing businesses, including those particularly sensitive to noise, dust or vibration and those related to tourism and recreation. In the Western Mail 12/12/05 Andrew Davies Assembly Minister for Economic Development stated: “We want people to experience the humour and the honesty of the Welsh and the pride we have in our country and highlight what makes Wales a refreshing and unspoilt alternative to other tourist destinations. Tourism is at the forefront of the Welsh economy, showcasing us to the world and bringing our welcome to the millions who come to us from across the UK and overseas”. The Green spaces provide a necessary amenity, a balance between recreation and urbanisation. Further open casting will ruin that balance and is unnecessary as there are alternatives, and there is no need to tear up beautiful countryside. The areas could be further improved for access, rather than being destroyed, allowing more opportunities for rural leisure activities such as walking, horse riding and cycling. It is obvious that opencast in the rural landscape will deter from investment and success of existing local businesses, particularly the leisure tourism sector. In spite of this planning departments and opencast operators have dismissed this claim by saying that there is no evidence to prove it. “What local authorities use opencast sites in their marketing literature to attract inward investors?” 4 January 2006 Western Mail Professor Kevin Morgan School of City and Regional Planning, CardiV University. Rural businesses work in harmony with the environment and often enhance it, whereas opencast will totally ruin the potential for leisure and tourism. Our landscapes have already been altered beyond recognition and irrevocably. Buildings that were historically important have been lost and farmland destroyed. When sites are mined by opencast the fields, farm and woodland names, usually in the Welsh language are lost forever, creating a form of local cultural amnesia and a severance of historical ties. In certain extreme cases, small villages, hamlets or rural farms Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 88 Welsh Affairs: Evidence
are bulldozed to permit opencast mining as at Ffordd Y Gyfraith and Heol Fadog Farm near Kenfig Hill, Bridgend. Currently, the hamlet of Pen Y Bryn in Neath/Port Talbot feels threatened by the possibility of another extension to the Parc Slip/Margam site. This is unacceptable, industrial vandalism on a grand scale. This especially since opencast is so destructive of the countryside in relation to the coal extracted.
14. Economics The cheap and easy option of ripping coal out of the earth with monster machines with the environmental degradation thus caused is not an economically rational course of action, given Wales’ wider economic aspirations. Our newly greened valleys and vales are not only of direct benefit to the people of Wales, they are a resource that we can use to attract visitors and business investors from around the world. To allow new opencast sites or extensions and their monster machines loose on them would be irresponsible and negligent. Opencast operators strategy is simply to produce more coal-based energy at whatever social cost. This route takes us back to the well-worn paths in history where Wales was treated, for economic and political purposes, essentially in colonial third world terms as a peripheral place only useful as a source of cheap labour, with lax environmental controls and where minerals could easily be exploited in every sense of that word. One would hope that the people of a newly democratised Wales are suYciently aware and sophisticated to refuse to accept a repetition of the errors of the past. In a Wales where the economic development minister regularly cites as business sectors of the future economic activities, such as electronics which require clean air, and leisure and tourism, which both depend upon an unpolluted and pleasant environment and where other ministers whether they have responsibility for health, environment, life long learning or any other portfolio, regularly refer to their aspirations for ‘quality of life’ there is absolutely no case for opencast mining. A full cost benefit analysis would undoubtedly find against opencast. At the moment they are rarely properly undertaken if at all. With reference to the Parc Slip/Margam extension proposal, PACT consulted an Economist who commented: “An economic case for the development has not been made . . . quite the reverse, The local multiplier eVects claimed by the developers rests on a very weak case and would easily be swamped by the social costs arising out of health and environment externalities. It is clear that matched against sustainable development criteria, the development would fail at properly constructed cost benefit analysis”. Dr Charles Smith (Bridgend resident),Economist, Swansea Institute Business School, University of Wales. Some of the opencast industry’s claims that we feel are often exaggerated and not always evidenced. — Need for their coal. — Local jobs and local economy. — That it doesn’t negatively aVect suitable local inward investments. — That it has no eVect on health and well being of nearby communities. — That if they fail to get an application through then it will be of national detriment to the whole of their opencast operations. — That they will not have the funds to restore unless they are given permission for further opencast. — That residents are protected by the monitoring system. — That all impacts are within acceptable limits. — That the loss of landscape is of no consequence to the communities. — That restoration would improve the area. — That massive visual, noise and dust impact can be controlled by planning conditions. — That flora and fauna can be “moved” without detrimental eVects. — That they get no complaints. — That if an application is allowed then opencast would cease by a certain date. — That they would not ask for more opencast again if they get their application granted. — That they have to opencast in order to provide underground mining in the future. The opencast companies moral obligation, consideration and regard for the locals is not a planning issue and is not covered by legislation, but perhaps it should be, on ethical grounds. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 89
Conclusion Wales needs better legislation, with a presumption against opencast, so that unsuitable applications can be rejected. Wales also needs a 500 metre separation distance between homes and working opencast sites. As long as opencast threatens further expansion in Wales it will be impossible to even pretend that in economic, social and environmental terms we are implementing the principles of sustainable development. If future opencast extensions take place against the wishes of the majority of the local people and their elected councils, it is thus not only environmentally destructive but is implemented undemocratically also. Clean Coal cannot be opencast coal as opencast coal is dirty coal. The future energy mix should contribute to a future vision for Wales that will assist in improving the standards of . . . 1. quality of life; 2. environment; 3. health; 4. bio-diversity; 5. amenity; and 6. leisure and tourism. . . . and not destroy it! “Real progress cannot be measured by money alone. We must ensure that economic growth contributes to our quality of life, rather than degrading it”—Tony Blair, Foreword to “A Better Quality of Life” (1999). Suzanne De Celis Neath/Port Talbot Resident Gaynor Ball Kenfig Hill Resident On behalf of all PACT Members and people opposed to opencast mining at Parc Slip/Margam. January 2007
Planning issues related specifically to Parc Slip/Margam
Open Cast Coal Mining in the Kenfig Valley:AMockery of Democracy 1. The local community having been subjected to opencast coal mining in the valley since 1947 objected to the planned extension of Park Slip Extension in 1988. The then Local Authority, Mid Glamorgan County Council took heed of these objections and refused planning permission. At the time West Glamorgan County Council had a very small part of the land subject to the planning application and to avoid any expense on their part that council consented to the application (I’ve been told this by a councillor who was on the planning development committee at the time.) The local community councils also objected to the application nevertheless the case went to Public Inquiry headed by one person, a planning inspector who eventually decided to allow the extension because: (a) It would only last for a total of six years including restoration of sites that needed two years restoration anyway. (b) Where it would be situated between Law Street and Bedford Road it would be screened from the villagers of Kenfig Hill and would not impact greatly on the communities of either Cefn Cribwr or Kenfig Hill. The community of Cefn Cribwr would have to put up with two years of restoration anyway. The land between Bedford Road and the woodland of Hafod Heulog would shelter Kenfig Hill from the site. (c) British Coal had no plans to extend further down valley. Where is the democracy in this? The County Council representing the communities of the area had voted democratically to refuse the application, the local people had objected and yet one individual was allowed to give a consent that has since been made a mockery. Despite what that man said consent has been given to allow the destructive opencast to move down valley to within a few hundred metres of Kenfig Hill. It is now 12 years since the open cast then consented to restarted, no reclamation has taken place, the communities of Cefn Cribwr, Kenfig Hill and Pen Y Bryn are denied all cross valley footpaths, two cross valley routes are closed—Bedford Road and Crown Road—leading to congestion in both villages at peak times, businesses have suVered and closed due to the loss of passing through traYc. Why has this been allowed to happen? Perhaps to some extent because of the reorganisation of local government that has taken Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 90 Welsh Affairs: Evidence
place in South Wales since the mid 1980’s. We no longer have a Mid Glamorgan and a West Glamorgan County Council, we no longer have Ogwr Borough Council, Port Talbot, Neath and Swansea councils but we have Bridgend CBC and NeathPortTalbot CBC and Swansea all divided up diVerently and separate. Celtic Energy, the private company resulting from the management buy out of British Coal in the area following the Public Inquiry in 1993, worked Park Slip West and then applied in 1998 to sink a deep mine that required a little bit more opencast in order to sink it in the void—Park Slip West Extension/Margam Mine. The only reason the application included a “deep mine” was because Neath Port Talbot had planning policies in force that would have stopped further opencast in the valley. Policies in the adopted plan for the area The Cwmafan, Bryn, Goytre and Rural Margam Local Plan were in force protecting the land under application: (d) From the opencast mining of coal—E 4. (e) Protecting the land for the deep mine—I 3. (f) Protecting valuable high grade agricultural land. These policies were not brought to the attention of the Neath Port Talbot Planning Development Decision Committee when the application for the deep mine was put to them. In both Bridgend and Neath Port Talbot a lot of emphasis went on the virtues of the proposed “Deep Mine” which would employ 300 to 400 people over a 20 year period. However though the company together with Tower colliery with whom they were supposed to be in partnership, stated that they would be conducting surveys into the viability, economic and geological, of the proposed deep mine, no oYcial from either borough council requested to see these surveys both of which were supposed to have been completed before the councils decided the application. If this is supposed to be a democracy when a company proposes to break so many previous conditions, so many existing policies, why was this company not asked to provide evidence to prove their application? In the event, no sooner was the company given the legal consent in the form of the 106 agreement in March 2001, having been allowed to continue opencasting in the meantime, than they let it be made known to council oYcers and to the site liaison committee that their “consultants had advised against sinking a deep mine from the void due to safety considerations”. It is a mockery of the planning process and of democracy and of the views of the local communities to allow a company employing a handful of people, the majority of whom are not even locals, to bypass written legal planning policies in this way. The law is certainly not there to protect democracy is it? In the last two years the local community has again objected most vociferously to the planning application submitted by Celtic Energy in 2004 to continue opencast down valley through the Hafod Heulog Woods and through the River Kenfig, in full view of, adjacent to and with no protection oVered to the village of Kenfig Hill. The Countryside Council for Wales and The Environment Agency both refused consent because of the proposed destruction of the pristine river and the semi natural ancient woodlands. I feel that the community should have been spared such an application. It should have been suYcient in planning law that such features are protected and cannot be subject to such process. The company should have been made aware from the outset that such an application was invalid. The Planning OYcer for Neath Port Talbot recommended refusal in his report to the decision committee and the company then withdrew it’s application. However we are now under threat of a revised application and a current application to extend the ongoing opencast by yet another year. I think that the company should now be made aware that the cumulative impact, the visual impact, the eVect on the health of the local populations, the damage to the remaining wildlife, the loss of access to roads, to footpaths, to countryside should make any further application to opencast the remains of our valley beyond consent. Furthermore, once the company has the initial, major consent to opencast then it immediately sets about applying for alterations to planning conditions etc to enable it to do exactly what it wants. In this area, this has included raising the overburden mound, extending the time limit for mining, mining an additional area to within a couple of hundred metres of many dwellings in the village, removing soil mounds placed to absorb sound and dust to protect the community in the process. We have suVered enough mockery of democracy here, we have suVered enough pollution and disregard, it is time to move into the 21st century and adopt modern technologies to protect the environment, the resources of the planet, the climate and the health of the people—which is amongst the worst in the UK. It is time to put an end to opencast coal mining here. J K Adamson (PACT member) January 2007
Supplementary memorandum submitted by Protecting and Conserving Together (PACT) Q192 Chairman: You, maybe, have anticipated some other questions, but could I ask you, from PACT, whether you consider that the coal industry is of economic importance to Wales? — The economics of coal extraction should not outweigh the basic rights of the local populations impacted on. Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 91
— The WAG is committed to economic sustainable development. Opencast is not sustainable economically because it does not meet the needs of the local people, create wealth or raise their living standards, in a way that is environmentally and socially acceptable. — Tourism is economically important to Wales, the criteria of a pleasant landscape, clean environment is needed for potential tourism. In this light opencast does not help to create inward investment. — The WAG have been promoting a knowledge based, high tech and skilled future economy, EG. Electronics. — The Stern Report advocates a carbon reduced economy. — Professor Hawkes, University of Glamorgan, has indicated that Wales could lead the way with renewables and that Wales has the expertise and skills to create a unique opportunity for economic growth in this sector. — The DTI have apparently dragged their feet, on the issue of the tidal lagoon at Swansea, for four years. It appears that China is positioned for the first tidal lagoon (using Welsh and Scottish skills). — Opencast coal mining is of commercial importance to the private companies who exploit the coal in Wales, on the cheap for them, to the great social, health and environmental cost of the local people.
http://new.wales.gov.uk/docrepos/40382/4038231141/403821124153/wave–en.pdf?lang%en The economic strategy in the above link, Page 15 says: “The Assembly Government has identified a number of sectors that are widely agreed to be important for the future of the Welsh economy (including high technology, automotive, aerospace, agri-food, tourism, financial services and the creative industries)”. We can argue strongly that “open cast” is not consistent with any of the above. Clean air and green environment are absolutely necessary for high technology, agri-food, tourism, etc. If you do a search for “open cast” the document “Wales, a vibrant Economy”, the document mentions this industry zero times. The word “coal” occurs just once, in one sentence where “clean coal” and “wind technology” are mentioned together. We can argue strongly that no amount of space age technology at the burning end of the process can make open cast coal clean, when the mining part of the operation is inherently dirty. We can also argue that today, unlike 30 years ago, there is not one identifiable community, village or town in Wales that benefits from coal related employment. However, there are a number of identifiable communities that suVer the real social costs of open cast. We need to challenge the statement that open cast employment is “skilled”. What is their training budget? Where is their training academy? What links does the industry have with further and higher education institutions? What NVQ levels do their employers enter with, and to what NVQ level are they trained? The onus is on the company to provide the evidence. They’ll probably say that most of the workforce are skilled at driving heavy machinery. We can respond by saying that the transport industry desperately needs 25,000 HGV drivers, so re-deploying these “skilled” drivers when the open cast is closed should be no problem, if their skills are as “transferable” as they ought to be. Dr Charles Smith 5 February 2007
Memorandum submitted by The Woodland Trust
1. Introduction
1.1 The Woodland Trust (Coed Cadw) is grateful for this opportunity to give evidence to the Welsh AVairs Select Committee. The comments that follow are delivered on behalf Wales’ leading woodland conservation charity. We achieve our purposes through a combination of acquiring woodland and sites for planting and through wider advocacy of the importance of protecting ancient woodland, enhancing its biodiversity, expanding woodland cover and increasing public enjoyment. We own over 1000 sites across the UK, including over 100 in Wales, covering a total of approximately 20,000 hectares (50,000 acres). We have 300,000 members and supporters across the UK. Page Type [E] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Ev 92 Welsh Affairs: Evidence
2. Key Points 2.1 Opencast coalmining is, potentially, a significant threat to the small areas of irreplaceable ancient woodland remaining in Wales, as the Margam opencast coal application demonstrates. 2.2 The Assembly’s planning policy, Planning Policy Wales which came into eVect in 2002, makes it clear in paragraph 5.2.8, that: “Ancient and semi-natural woodlands are irreplaceable habitats of high biodiversity value which should be protected from development that would result in significant damage”. This appears to rule out the permitting of opencast applications which would cause significant damage to ancient woodland. 2.3 Some of those giving evidence to this Committee may argue in favour of a relaxation of this policy. In the view of the Woodland Trust, any such relaxation would be the worst form of short-termism, and a shameful surrender of an irreplaceable environmental asset. 2.4 Ancient woodlands are part of the wider environment and countryside, and they can be damaged by significant development in their immediate vicinity, as a result of hydrological changes and potentially noise, dust and pollution. BuVer zones are therefore extremely important. 2.5 The Woodland Trust is an active member of the Stop Climate Chaos coalition. We believe that Wales, Britain and the world need to face the forthcoming environmental and energy challenges through a vigorous programme of energy conservation, with firm annual targets for reductions in CO2 emissions, coupled with the development of renewable energy sources. That said, this evidence in no way seeks to map out a detailed energy policy for Wales as a whole, and the Trust is not in a position to answer detailed questions on specific energy related developments other than this one at Margam. 2.6 The Woodland Trust has strongly supported the campaign by the local action group, PACT (Protecting and Conserving Together) to oppose the planning application to extend the opencast site at Margam that would have led to the loss of Coed Hafod Heulog. We are delighted that this particular application has now been withdrawn. We remain concerned, however, about the impact of a new application. We therefore look forward to working with PACT in the future if any future application threatens this or any other ancient woodland.
3. Background and Further Illustration of these Points
Ancient woodland 3.1 The ancient woodland inventory defines ancient woodland as land that has been wooded since 1600. But as plantations were rarely created before this date, ancient woodlands sites are likely to have been wooded since shortly after the last ice age, some 9,000 years ago. 3.2 There are 26,972 hectares (66,647 acres) of ancient woodland remaining in Wales. Of this, about half (24,703 hectares) has been planted with non-native trees, mostly conifers, while 51,675 hectares has remained as Ancient Semi-Natural Woodland. These figures were produced by an overlay of the Ancient Woodland Inventory with the National Inventory of Woods and Trees, undertaken by Oxford University’s Forestry Institute in association with Forest Research, commissioned by the Woodland Trust. 3.3 As the terrestrial habitat most representative of original, natural, stable conditions, ancient woodland is home to more threatened species than any other habitat in the UK. This is supported by the UK Biodiversity Action Plan, which identifies that broadleaved woodland supports almost twice as many species of conservation concern (232) as any other habitat eg more than twice as many as chalkgrassland and almost three times as many as lowland heathland. (Biodiversity: the UK Steering Group Report (1995) Volume 1: Meeting the Rio challenge (HMSO) 3.4 Ancient woods are our richest, most important sites for a vast range of insects, birds, animals, flowers and trees. They are one of the glories of our natural heritage; they are places of inordinate beauty, reservoirs of evidence for environmental change, archaeology and economic history. The Woodland Trust believes that we simply cannot aVord to lose them, and that new planting can in no way compensate for their loss. 3.5 Ancient semi-natural woodland disappeared at an alarming rate during the last century. Nearly half the ancient woodland remaining in the 1930s was either cleared for agriculture or converted to plantation (Peterken, G F (1993) Woodland Conservation and Management (Second Edition) Chapman & Hall). Recent research shows that 44% of Britain’s remaining ancient woodland is now plantation, and about two- thirds of this plantation is coniferous or mixed (Pryor, S N and Smith, S 2002) The area and composition of plantations on ancient woodland sites. The Woodland Trust www.woodland-trust.org.uk/ publications.htm). 3.6 More species have become nationally extinct in the last 100 years from broadleaved woodland than any other habitat (46 species), and it also has the most globally threatened and rapidly declining species (78 species) (Biodiversity: the UK Steering Group Report (1995) Volume 1: Meeting the Rio challenge HMSO). The Institute for Terrestrial Ecology’s Countryside Survey 90 showed that between 1978 and 1990 losses in species richness of woodland (14%) from plots located at random exceeded that for all other semi-natural habitats. And in 2000, a pilot re-survey of 14 of the sites last looked at in 1971 revealed a range of potential issues, including a striking general decline in the variety of woodland plants, with those characteristic of Page Type [O] 12-12-07 22:28:42 Pag Table: COENEW PPSysB Job: 371179 Unit: PAG3
Welsh Affairs: Evidence Ev 93
ancient woods suVering most (Smart, S M, Bunce, R G H, Black, H J, Ray, N, Bunce, F, Kirby, K, Watson, R and Singleton, D 2001, Measuring long-term ecological change in British woodlands 1971–2000). English Nature Research Reports No 461a/b).
4. The Threat to Ancient Woodland from Opencast Coalmining 4.1 As of January 2007, the Woodland Trust database listed 35 ancient woodlands across Wales that we know to have come under threat recently. Ten of these threats were from road schemes, 7 from public utility services, 5 from minerals, 4 from housing development, and with 9 others from other threats such as caravan parks, golf courses and an airport. 4.2 If planning regulations were relaxed, it is likely that opencast coalmining would become a much greater threat to ancient woodland in Wales.
5. Planning Application for Extension of the Opencast Site at Margam No 2004/1832 5.1 The Woodland Trust formally wrote to both Neath Port Talbot and Bridgend Councils, to object to this planned development, in October 2006. 5.2 The Trust objected to the application on the basis that the developers freely admitted that the application would lead to the destruction of 4.5 hectares (over 11 acres) of Coed Hafod Heulog, a ancient semi-natural woodland which stands on both banks of the River Kenfig. The wood appears on the Countryside Council for Wales’ inventory of ancient woodland, referred to paragraph 5.5.15 of Planning Policy Wales. 5.3 The information submitted in support of the application confirmed that Coed Hafod Heulog is ancient woodland of high ecological value. It contains a rich variety of flowering plants that are typically indicators of ancient woodland, including bluebells, wood sorrel and dog’s mercury, and is also an important habitat for pipistrelle, natterers and long eared bats.
New planting 5.4 The Environmental Impact Assessment sought to justify the destruction of this woodland on the basis that this would increase the quantity of coal that could be extracted, from 1.5 million tonnes to 2.4 million, and that the company could carry out “additional planting along the diverted watercourse, so that the overall loss of woodland would be minimal”. Planning Policy Wales, however, makes is clear that, because of its age, ancient woodland is irreplaceable. Newly planted woodland can be no substitute for an ancient wood which has developed and matured over thousands of years, and which has the richness of wildlife to prove it. January 2007
Memorandum submitted by RWEnpower Aberthaw’s coal burn is around 2.4Mt per year and is currently sourced as follows: 40% Indigenous made up of supplies from Tower, Celtic Energy and Energybuild 60% Imported from Russia, Australia and South Africa. All deliveries into the station are by rail. John Bance Aberthaw Power Station 24 April 2007
Printed in the United Kingdom by The Stationery OYce Limited 12/2007 371179 19585