Speaking in a debate on ports and green energy, Peter Aldous highlights Lowestoft’s success as a hub for low carbon energy and calls on the Government to address the challenges in attracting investment, in to port infrastructure.
Peter Aldous (Waveney) (Con)
It is a pleasure to see you in the Chair, Mrs Cummins. I congratulate my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) on securing this debate. He is right to highlight the opportunities in the Celtic sea. I shall briefly provide some geographical balance and complete our tour of coastal Britain by showcasing the work that is taking place in the southern North sea, off the East Anglia coast. With the right investment in ports such as Lowestoft, so much more could be achieved that would not only enhance our energy security and propel us down the road to net zero, but help to deliver long-term economic growth.
Lowestoft port, which is likewise part of the ABP fleet, has a good story to tell. SSE has run its operations and maintenance base in the outer harbour since 2012, and ScottishPower Renewables has done likewise since 2019. ABP is progressing plans for the Lowestoft eastern energy facility. There will also be a direct air carbon capture demonstrator site in the inner harbour, which is being progressed by ABP in conjunction with Sizewell C. Lowestoft and Ipswich ports will also play important roles in delivering materials to the Sizewell C nuclear power station.
A good start has been made, but there are challenges immediately ahead that need to be addressed if we are to make the most of this once-in-a-lifetime opportunity. There is a global race for green investment. The UK should not and cannot get into a subsidy race to the bottom with the likes of the United States. Instead, we should work faster and smarter, building flexibly on what we have already achieved.
In his April report, UK offshore wind champion Tim Pick highlighted a variety of risks that have limited UK port investment. Some of those relate to the contracts for difference mechanism. I will not go into those in detail, as many of us will be back here tomorrow to take part in the debate on the subject led by the hon. Member for Strangford (Jim Shannon). The report highlighted a variety of obstacles that need to be addressed. There are some interesting recommendations, which I will briefly highlight: an industrial growth plan; a support framework for offshore wind ports targeted at the risks that they face; and a recommendation that the Government should give offshore wind ports priority, just as they do to offshore wind farms, in the national policy statements. I would be most grateful if, in summing up, my right hon. Friend the Minister advised us how he and the Government will respond to Tim Pick’s report, with specific regard to promoting investment in port infrastructure.
In conclusion, over the past decade offshore wind has been a great British success story. We put in place a mechanism that has worked very well. However, due to geopolitical and inflationary pressures, it needs recalibrating. As part of that process, leading up to the autumn statement, we need to review the way we promote investment in port infrastructure. Ports such as Lowestoft are honeypots not only for decarbonisation but for job creation and regeneration. They are the link between offshore electricity regeneration and onshore supply chains. Nurture them properly and the dividends will be significant.
Peter Aldous
Offshore wind champion Tim Pick has highlighted some of the obstacles that need to be overcome for the industry to realise its full potential. Some of that focuses on ports. Will the Minister provide a bit more detail on the Government’s response to his proposals and recommendations?
The Minister for Energy Security and Net Zero (Graham Stuart)
We are working with industry through the Offshore Wind Industry Council, of which I am a co-chair, to consider Tim Pick’s wide-ranging recommendations, including developing an industry growth plan. Again, this is to do with supporting the development of the UK supply chain and, as we do this massive deployment, trying to ensure that as much as possible of the industrial heft of that can be delivered through the UK and UK jobs. That work is ongoing, and we will keep going.