Thank you, Madam Deputy Speaker. I heard your statement, and Mr Speaker’s earlier.
With permission, I would like to make a statement on the Government’s carbon capture programme. Last week was a historic week for our energy system. On Monday, 142 years of coal-fired electricity generation came to an end, as Ratcliffe-on-Soar power station closed for the last time. I pay tribute to the generations of coal workers, at Ratcliffe and elsewhere, who powered our country for more than a century, and to power station workers; we owe them a huge debt. I am sure that sentiment is shared across the whole House. As one era ends and we begin the next stage of Britain’s energy journey, the Government are determined to create a new generation of good jobs in our industrial heartlands. On Friday, we began a new era, as Government and industry agreed the deals that will launch Britain’s carbon capture industry.
This has been a long time coming. I was proud, as Energy Secretary, to kick-start the process of developing carbon capture way back in 2009—some hon. Members were then still at school, and I am much greyer now—with a £1 billion competition. In 2011, that programme was cancelled by the coalition Government. In 2012, a new competition was announced, and in 2015, it too was cancelled. When we came to office, we inherited an in-principle aspiration to go ahead, but the very significant Government funding required had not yet been accounted for, so under the last Government we had fits and starts, dither and delay.
By contrast, just three months since we came to office, this Government have turned promise into reality. I can confirm to the House that we have agreed commercial terms, and £21.7 billion of funding over 25 years for five carbon capture, usage and storage projects across two clusters: HyNet in the north-west, and the East Coast Cluster in the north-east. This announcement will enable the construction of two transport and storage networks that will underpin this new industry. The highways for carbon capture and the deals we have agreed will also kick-start development of Net Zero Teesside, the world’s largest gas with CCUS plant, and—these are both in Ellesmere Port—Protos, a new CCUS energy from waste facility, and EET Hydrogen, the UK’s first large-scale blue hydrogen project, which is the cleanest in the world. They will crowd in £8 billion of private investment across the two clusters, creating 4,000 jobs in our industrial heartlands and building an initial capacity to remove over 8.5 million tonnes of carbon emissions each and every year. I pay tribute to the six new Labour MPs in Teesside and colleagues across the north-west who have been brilliant champions for those projects. This is just the start; we will have more to say in the coming months about carbon capture sites in Humberside, Scotland and elsewhere around the country.
This investment is the right thing to do for Britain. CCUS will unlock the decarbonisation of hard-to-abate sectors, from chemicals to cement; enable the production of low-carbon hydrogen; and, by capturing emissions from gas-fired power stations, play an important role, alongside renewables and nuclear, in delivering clean power by 2030 and beyond. That is why experts in bodies ranging from the Climate Change Committee to the International Energy Agency are clear that carbon capture is critical to our meeting our climate commitments. There are those who doubt that. To them I quote James Richardson, the acting chief executive of the Climate Change Committee, who said on Friday quite simply:
“We can’t hit the country’s targets without CCUS”.
The IEA, in a report from 2020 that I very much recommend to right hon. and hon. Members, said:
“Reaching net zero will be virtually impossible without CCUS”,
pointing to “heavy industries” that
“account for almost 20% of global CO2 emissions today”.
To those who doubt whether the technology can work, I point out that it has been operating safely for decades in Norway and the US.
Last week’s announcement puts the UK on the path to leading the world in deploying carbon capture at scale. Being an early mover in this technology offers huge economic and industrial benefits for Britain. The North sea means that we have the chance to lead; it gives us the capacity to store 200 years of our carbon emissions, has existing infrastructure that can be repurposed, and allows us to use the talents and experience of our highly skilled oil and gas workforce.
Over the last few years, around the world we have seen the race for the jobs and industries of the future accelerate. For too long, Britain has opted out and lost out. No longer. We will harness Britain’s geology, know-how and expertise to be a world leader in this technology that will define the 21st century, building an industry that could support up to 50,000 jobs by the 2030s and using every tool at our disposal to seize the opportunities for Britain, with a proper industrial strategy and a commitment—which is absolutely crucial—to using public and private investment to build the future that our country deserves.
That is all part of the action of a Government who, in the last three months, have shown that we are in a hurry to deliver our mission to make Britain a clean energy superpower. We have lifted the onshore wind ban, consented to record amounts of nationally significant solar, launched Great British Energy, delivered the most successful renewables auction in British history, and set out our plans to lift more than a million households out of fuel poverty. We are moving apace, both because of the urgency of the challenges that we face and because of this Government’s determination to win for Britain. Last week marked the end of one chapter in our country’s energy story and the start of a new one—a new era showing that we can decarbonise and reindustrialise, a new era of clean energy jobs and investment in our industrial heartlands, and a new era of climate leadership. I commend this statement to the House.