14:30 Stephen Crabb (Preseli Pembrokeshire) (Con)

That this House has considered ports and green energy.

This is an important topic, for a couple of reasons. First, quite simply, without a thriving port sector attracting the necessary new infrastructure investment, I do not believe that we will be able to meet the ambitious targets that we have set to protect our energy security and renew our energy system as we work towards net zero. Secondly, a new generation of investment in our ports, based around a long-term vision for renewable energy, has the potential to make a significant contribution to addressing some of the economic inequalities and deprivation that we see in too many of our port communities.

I believe that the green energy revolution offers a turning point for many of our ports. There is a broad consensus shared across the Government, the Opposition and large swathes of industry about the increasing importance of renewable energy in our energy mix and about the need for less reliance on imported hydrocarbons. With the impact of climate change brought increasingly into focus following the supply and price impacts of the war in Ukraine, we can see the net zero and energy security agendas coming together in a very potent way. The need to deliver home-grown, affordable and sustainable energy has never been greater. Our ports are right at the heart of meeting that challenge.

It is worth saying that Britain does not exist in isolation when it comes to this agenda. Across Europe, North America and indeed the whole world, many other countries are looking at this—just look at the efforts being made by major ports across Europe to get ready by upgrading their infrastructure to enable a big increase in renewable energy. We can see that at Bilbao, Brest, Rotterdam and other locations across Europe. We are in an internationally competitive environment. One point that I want to leave with the Minister today is that, for all the ambition we have and the vision that we have set out and are pursuing, we need to recognise that others are doing so as well. Given the competition for investment and capital, often from large global companies, we need to be getting our skates on and making good progress.

Ports have a major role to play in delivering on the renewable energy vision, and not just as transit points or entry and exit points for materials; they also have the potential to be hubs for manufacturing, energy generation, operations, maintenance and servicing. Just as in another era our ports acted as cradles of the industrial revolution, I think they can be cradles of a new green industrial revolution, based on the vision that I have been outlining.

Shoreham harbour has put solar panels on its sheds. It has wind turbines. It helps to service the Rampion wind farm just offshore, which will expand to power more than 1.2 million homes across Sussex. It is becoming a hydrogen hub, working with Ricardo engineering, which retrofits engines to be run on hydrogen. Shoreham wants to produce its own hydrogen as well as importing it, and it will be an important centre for net zero through the Sussex bay kelp project, where carbon capture by seaweed is even greater than by trees. Is Shoreham not a great example of flexibility, adaptability and the huge potential of the green revolution, which can also apply to the whole United Kingdom?

I feel this is an appropriate juncture to intervene. My right hon. Friend will be aware of the importance of Felixstowe port in Suffolk, which has almost 50% of the UK’s container trade. Through strategic investment, there is a great opportunity for the Government not only to support the economic growth of ports, but to support them in delivering the decarbonising agenda. In the case of Felixstowe, investment in the Ely junction will make a significant difference by potentially improving freight rail capacity to the port. Will my right hon. Friend join me in urging the Minister to recommit today to the Government securing timely funding for upgrading that junction and others in the east of England? That will allow improved freight transport to Felixstowe, will help to decarbonise the transport of goods to the port and will improve its economic capacity.

I am grateful for that intervention. I am not familiar with the specifics of what my hon. Friend is talking about, but as I am generally in favour of upgrading junctions, I will echo his call to the Minister to support the investment required. His point about decarbonisation is really important; I might say a few words myself about decarbonisation in the context of the local energy industry in Milford Haven.

Last week, alongside representatives of many companies at the port, I had the pleasure of celebrating the delivery of the 1,000th cargo of liquefied natural gas at the South Hook LNG terminal. This afternoon we are talking about the green energy revolution, but the truth—this is a point that the Minister understands very well—is that we will rely on oil and gas for decades to come, and the terminals in my constituency that have done a lot of the heavy lifting in the last couple of years in enhancing UK energy security will be as vital as ever. Those conventional energy companies are themselves taking huge strides and making big investments to decarbonise, reduce their own carbon footprint and fit in with the framework of policy and ambition that the Government have set out.

I commend those companies—South Hook LNG, Dragon LNG, the Valero oil refinery, the Puma oil import terminal—which are all part of a cluster around the Milford Haven waterway that is sharing best practice and working together. They are part of the wider south Wales industrial cluster, which has been charged by the Government with the mission of leading decarbonisation efforts. I look forward to hearing the remarks of my friend the hon. Member for Aberavon (Stephen Kinnock). The south Wales corridor—from Milford Haven in the west with its big hydrocarbon plants, through to Port Talbot with the enormous Tata steelworks, and then to Newport and the border of England at Gwent—accounts for a major chunk of Wales’s overall carbon emissions, so the south Wales industrial cluster’s efforts to decarbonise are vital. The Government support them, but it would be good for Ministers to engage even more with the cluster and particularly, from my point of view, with the energy cluster in Pembrokeshire.

In October last year, I led a debate in Westminster Hall about floating offshore wind. I will not repeat everything I said about the new industrial opportunity for Wales and south-west England that lies in the Celtic sea, but I underline the point that this is not some piece of green idealism. The Government’s targets for reaching net zero and ensuring a greater degree of energy security require industrial development in the Celtic sea on a very large scale. Milford Haven is in an ideal geographic location for the Celtic sea developments.

Milford Haven also has more than 50 years of energy industry skills and heritage. Many companies in the local supply chain are well able to adapt and are excited about the potential new opportunities from floating offshore wind. More than 20 companies have expressed an interest as potential developers in floating offshore wind projects in the Celtic sea, including large companies such as RWE and Equinor, which have global footprints and are already investing in Pembrokeshire ahead of the opening up of the Celtic sea. Other companies such as Floventis are already working with local schools and colleges to look at what kind of skills will be required and to excite young people about the green energy revolution. We will need many more people going into technical trades—more welders, pipe fitters, marine engineers, navigators and people who can work offshore—as well as project planners and all the other highly skilled jobs that are required to deliver such projects. It is an exciting time down in Milford Haven.

Let me wrap up by summarising a few asks of the Government. The first—the Minister has heard me ask this before, but I will ask it again—is that it would be great if he could visit Milford Haven, sit down with some of the companies that I am talking about, and get a sense of the excitement and the work that is happening. The previous Secretary of State made a fleeting visit in the middle of August to RWE’s net zero centre at its power station in Pembroke, but we need the Minister to engage with the whole sector. He has previously committed to coming down. Transport to west Wales is appalling—the Welsh Government need to pull their finger out when it comes to running train services, but that is a debate for another day—so it is difficult to get to. There are so many good Scottish colleagues present, so I will make the point that, given the number of visits that Scottish constituencies get, it would be great if Wales could have some of that as well. That is my first ask: come to Pembrokeshire and see what is happening.

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14:53 Stephen Kinnock (Labour)

So what do we need to do to seize these opportunities? First, we need to make sure that the port infrastructure is built. The port and the prospective developers need certainty. They need assurances that the market will reach its full 24 GW capacity. Of course, the first round of FLOW, as confirmed by the Crown Estate, is only set at 4.5 GW, but it is the long-term line of sight on this and the pipeline that we really need to focus on. Associated British Ports is developing its plans for Port Talbot at pace, investing more than £500 million in developing a major floating offshore wind integration assembly port and a wider green energy hub. But the length of the leasing window by the Crown Estate is of crucial importance. We need a clear outline of the development window to that 24 GW target for flow in the Celtic sea. This is to act as a clear signal in that FLOW global market. Could I ask the Minister to outline the steps he is taking to secure clarity about the long-term pipeline?

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15:13 Judith Cummins (Labour)

On the planning side, the Government need to find a solution to the national grid’s capacity issues. The National Grid says it has to develop up to five times as much energy infrastructure over the next seven years as it has developed over the past 30 years, such is the clamour for net zero projects, in terms of both energy generation and demand. How will the UK Government and, more specifically, the Minister work with the National Grid to end the gridlock, and how will they send a clear message to developers that these problems are going to be fixed?

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15:16 Douglas Ross (Moray) (Con)

Immediately before this debate, I met David Whitehouse from Offshore Energies UK. He has been doing a lot of work with oil and gas, but also with renewables and green energy. He was keen to speak about the opportunities available to ports across Scotland and the United Kingdom, and about the UK Government’s support to ensure that the infrastructure is there and is capable of taking us on to the next level.

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15:19 Jim Shannon (DUP)

I thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for bringing the issue to Westminster Hall today. He has done so before. I have been here to support him in the past, and I do so again today with the same motive: I have always believed in net zero and green energy. Some people in my party perhaps may not have the same enthusiasm for it, but that is not the point; the point is that our party is committed to it, and we want Northern Ireland to contribute to net zero goals.

The strategy to reduce emissions is to increase electrification of ports and port handling processes, and to adopt future fuels such as liquified natural gas, hydrogen or ammonia. Globally, we need to come together as one to decarbonise shipping and ports, thus ensuring our target for net maritime CO 2 reduction is met. Everyone here knows where I stand: I am a great believer in this great United Kingdom of Great Britain and Northern Ireland. With respect to my hon. Friend the Member for Dunfermline and West Fife (Douglas Chapman), we are always better together. We can do this better together, and I do not see any reason why it cannot happen.

There is a great necessity for a solid and flexible energy system that complements local production of green energy with the import of renewable molecules. If port and harbour masters are to consider the benefits of a green future, Government incentives must be there. I ask the Minister whether the incentives to make that happen can be put in place.

We are a maritime nation. The United Kingdom’s ports can be the basis for a new, low-carbon economic model and can help to address the long-standing regional imbalances that have come to characterise the British economy. This United Kingdom of Great Britain and Northern Ireland should pave the way, and the devolved Administrations should not be left behind. Associated British Ports is committed to investing in green energy infrastructure, and the services needed to deliver a clean energy transition and create lasting prosperity for our coastal communities. We need greater integration between this place and the Department for the Economy back home in Northern Ireland, through the Minister’s participation and encouragement. I encourage the Minister to ensure that we in Northern Ireland become part of this project.

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15:24 Royston Smith (Southampton, Itchen) (Con)

Associated British Ports runs the port of Southampton and is committed to decarbonisation. All ABP vehicles in the port are electric, and it has free chargers for all visitors and employees in the port. Last year, ABP commissioned its first shore power plug-in. Some 80% of cruise ships are capable of taking plug-ins, but there are very few of them in this country. In fact, ABP in Southampton had the first commercial plug-in in the UK. It would like a second one, but the national grid does not have the capacity. The new cruise terminal that it commissioned the year before last, the Horizon cruise terminal, which was opened by the then Minister for marine and maritime, my hon. Friend the Member for Witney (Robert Courts), is the greenest port terminal in the country. It has 2,000 solar panels on the roof and creates more energy than it uses every day. Elsewhere in the port, DP World operates the container facilities; it has decarbonised its vehicles and straddle cranes by using hydro-treated vegetable oil to replace diesel and has cut the terminal’s emissions by some 80%.

Beyond the boundaries of the port, the Solent cluster is working to decarbonise energy. The cluster is the only decarbonisation option in the south of England. It is led by ExxonMobil, ABP, the Solent local enterprise partnership and the University of Southampton, and it has over 50 partners. ExxonMobil’s plans are to create hydrogen manufacturing, which will be able to supply industrial quantities of hydrogen by 2030 while capturing the carbon that the manufacturing process creates. It will be able to capture not only its own carbon, but carbon from other industries in the area.

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15:27 Martin Vickers (Conservative)

There is no doubt that the port sector has a leading role to play in our energy transition. I am fortunate to have in my constituency on the Humber the ports of Immingham, Grimsby, Hull and Goole, which are all owned and operated by Associated British Ports. We are, indeed, the energy estuary. ABP is committed to green energy and to meeting our net zero ambitions. The port of Immingham is the largest port by tonnage, handling around 46 million tonnes of cargo each year. It represents a gateway to global trade and is a critical part of the supply chain for sustainable electricity generation and other production that helps to power the nation.

Linked to ports are, of course, freeports, which also have a huge role to play in the energy transition. We are fortunate in the region to have the Humber freeport, which is determined to accelerate the region as a world-leading hub for renewable energy and clean growth. The Humber freeport incorporates three tech sites that will allow for the rapid development of new offshore wind manufacturing, which will make the site a leading UK producer of wind turbines. Given that the port of Grimsby, part of which is in my constituency, is the largest hub for offshore wind operations in the world—there is significant growth still to come—the Humber is ideally located to take advantage of the growing demand for wind energy in the North sea. The Humber ports are home to world-leading facilities such as Ørsted, the Siemens blade factory and the offshore renewable energy catapult operations maintenance bases in Grimsby. This is opportune, given that offshore wind is set to grow at pace over the next decade, with 40 GW of clean electricity planned by 2030. The Humber can act as a model not only for the UK, but for Europe and the wider world.

ABP has also partnered with Harbour Energy to develop a carbon dioxide import terminal in Immingham. That terminal will provide a large-scale facility to connect CO 2 emissions from industrial businesses around the UK to Viking CCS’s CO 2 storage sites in the southern North sea. The project includes Phillips 66, VPI and West Burton Energy. Together, they aim to capture 10 million tonnes of UK emissions per annum by 2030. That is vital work in the UK region that has the greatest CO 2 emissions by a considerable margin. Fortunately, local industry agrees that that record is not acceptable and must change, which presents a monumental opportunity. My constituency will hopefully become home to the Immingham green energy terminal, which will be on the eastern side of the port of Immingham. That is to be constructed and maintained by ABP, and will be home to Air Products’ new hydrogen production facility.

The terminal will include a new jetty with up to two berths and associated infrastructure, to be used for the import and export of bulk liquids. It represents a nationally significant infrastructure project and therefore requires a development consent order from the Secretary of State. I hope that the Minister will feed back positively on this project to his Department, given that the terminal will contribute to the Humber 2030 vision; the Humber Energy Board is driving forward change in local industries in order to decarbonise the Humber and deliver clean energy for the future.

The Minister will be aware of the CATCH training facility based at Stallingborough on the south bank of the Humber, which is being developed as a national net zero training centre. The significance of recent and planned investment in decarbonisation projects in the Humber cannot be overestimated. Offshore wind, hydrogen energy, carbon capture—the Humber ports have it all. We are proud to be the UK’s energy estuary, and I am determined for us to maximise the opportunities that arise from the net zero transition, creating highly skilled jobs and driving investment. As my right hon. Friend the Member for Preseli Pembrokeshire said, we are in a worldwide field. We need certainty and speedy decisions from the Department; I am sure that the Minister will confirm that that is what we will get.

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15:32 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.

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.

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15:36 Douglas Chapman (Dunfermline and West Fife) (SNP)

It is a pleasure to serve under your chairmanship, Mrs Cummins. I am delighted to sum up in today’s debate on the contribution of ports to green energy. I really do thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing this debate, which it is important to have at this time.

This debate gives me the chance to highlight some of the benefits, from a Scottish perspective, of the development of ports north of the border, where our green port ethos is centred on the importance of net zero and the just transition. At the heart of the Scottish Government’s unique approach to our green ports is the commitment to the development of renewable technology, an innovative environment and the promotion of decarbonisation, alongside the creation of well-paid, high-quality jobs and skills development.

In that sense, the fair work practices agenda is embedded in our green ports from the get-go, and progress on freeports and green ports must be monitored and evaluated to ensure a just transition. We want to ensure that we make the most of the skillset we have in Scotland, valuing the existing expertise across the energy sectors while transitioning from oil and gas to renewables, and training up the new generation of workers into high-quality work.

The second green port will be based at the Inverness and Cromarty firth—another area steeped in industrial history and now playing a critical role in offshore wind. The project will place the highlands at the heart of the drive towards net zero. It will create 15,000 jobs in the area and a further 10,000 across Scotland and the rest of the UK, focusing on renewable and low-carbon energy production. Again, it is good for the economy, good for creating prosperous communities, and good for the environment.

Before I draw to a close, it is good to remind colleagues not just of the benefits of a just transition, but of its true definition. Scotland’s Just Transition Commission described it as a process whereby

benefits the climate change agenda—benefits that are widely shared—but where

I remind Opposition politicians that we are trying to lead on that in Scotland, but we need to focus on these ambitious climate and net zero targets to ensure that the just transition actually happens and remains meaningful.

In conclusion, the Scottish Government are committed to using the new green ports to attract investment into our economy. In addition, Scotland has all the potential to be a world-leading green energy producer, where the jobs, the revenue and the power rest with Scotland. The maritime sector also has a strong responsibility and an opportunity to be a key player in that ambition and to make the managed transition work for everyone. Between our industry sectors and Government, we can all benefit, but the message needs to be: let’s just do it.

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15:43 Jeff Smith (Labour)

I also enjoyed listening to the hon. Members for Dunfermline and West Fife (Douglas Chapman), for Southampton, Itchen (Royston Smith), for Waveney (Peter Aldous), for Cleethorpes (Martin Vickers) and for Moray (Douglas Ross), and it is always good to hear from the hon. Member for Strangford (Jim Shannon) about his commitment to net zero. It is clear that there has been a lot of consensus in the Chamber today. That demonstrates the strong consensus across the House about the importance of the green energy transition, and the good jobs and prosperity that it needs to create—and will create—up and down the country, particularly for port communities and other places with a strong industrial heritage, some of which have suffered economically in recent years, as the right hon. Member for Preseli Pembrokeshire pointed out.

Ports have a key role to play in helping to decarbonise energy generation, transport and industry. Their role as bases for the offshore wind industry and the skilled workforce that many of them have make them pivotal to the UK’s energy transition. Many ports are already playing that role with offshore wind and many more could unlock further power generation from floating offshore wind and—potentially—hydrogen.

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15:49 Graham Stuart (Conservative)

As has been said by everyone here today, ports are so important to unlocking the green revolution. As colleague after colleague have highlighted, from the Humber to Wales to Scotland, the southern North sea and Northern Ireland, ports have an enormous contribution to make to economic regeneration. The fact that we are blessed with this phenomenal renewable energy opportunity in the UK—which this Government, uniquely and unlike the previous, are committed to unlocking—means that we can turn levelling up from an excellent concept into genuine delivery. The previously highly carbon-dependent areas of this country are the very areas that genuinely need that, and they are best set to benefit from it. Their ports are what will make that possible.

The right port infrastructure is vital to deliver offshore wind and other renewables, as part of our transition to net zero. Big though the energy business, carbon capture and related things are, perhaps the biggest opportunity here is what all this will facilitate. When we took on the COP presidency, just 30% of global GDP had made net zero pledges. By the time the presidency was handed on by the UK to Egypt, that figure stood at more than 90%. The world is following. If we create among the world’s first genuine net zero industrial clusters, the inward investment that will come—into non-directly energy-related, yet still energy-dependent businesses, as every business is—could be quite phenomenal. That is why colleagues are right to share their excitement and why my right hon. Friend the Member for Preseli Pembrokeshire is right, again and again—alongside, as always, the hon. Member for Strangford (Jim Shannon)—to come here and enthuse about the importance of this and the opportunity it brings.

The Government’s policies, as set out in the British energy security strategy and endorsed in “Powering Up Britain” earlier this year, include bold new commitments, so that we can supercharge clean energy and accelerate renewable energy deployment. The Government set an ambition of 50 GW of offshore wind by 2030, up from just 14 GW today. The UK has the largest offshore wind sector in Europe and is home to all four of the largest offshore wind farms in the world. As part of that ambition, we are aiming for up to 5 GW of floating offshore wind. Colleagues have rightly highlighted the importance of ports to that, given the gargantuan scale of the products that will be required. Ports will play a vital part.

The offshore renewable energy catapult has estimated that floating offshore wind could deliver more than £40 billion for our economy by 2050, creating about 30,000 jobs in the process. We are moving at pace to deliver those benefits, with more than 25 GW of floating wind projects with confirmed seabed exclusivity—the most in the world. The last thing we need to introduce into the excellent track record and system for bringing in private sector investment from all over the world—which we are proud of—is Labour’s plans for Great British Energy clunking into a carefully calibrated set of market mechanisms. That will have exactly the opposite effect of the objectives that the shadow Minister, the hon. Member for Manchester, Withington, set out.

The Government recognise the critical role that ports will play in achieving our green energy ambitions and the importance of securing investment in the infrastructure. They will also be a big enabler for offshore wind and a catalyst for wider supply chain development.

As I said, ports are not just important for offshore wind. They will also play a key role for carbon capture and storage, supporting the decarbonisation of emitters. Maritime shipping will play a key role, linking emissions captured from the dispersed sites with offshore CO 2 storage sites. Import and export ports across the UK that can handle large volumes of CO 2 will be required to facilitate the transport and storage of CO 2 via ships. We heard about the plans for the Humber and elsewhere, indeed including on the south coast as mentioned in the brilliant, albeit short, speech by my hon. Friend the Member for Southampton, Itchen (Royston Smith).

I was asked about meetings. Notwithstanding any transport and logistical challenges, I would be delighted to come to Wales. I must pay tribute once again to my right hon. Friend the Member for Preseli Pembrokeshire, who is relentless, albeit always cheerful and well-considered, in promoting the need for understanding and engagement with his part of the world and the opportunities that offers for the whole of the UK in contributing to the global challenge on climate change and, most importantly, in delivering a more prosperous and better future for constituents in his part of the world. Thank you, Mrs Cummins, for chairing the debate.

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16:08 Stephen Crabb

Thank you, Mrs Cummins, for your excellent chairing. I thank all colleagues who participated in what I thought was a useful, practical and good-natured debate. I always come away from these things having learned quite a lot about what is going on in different parts of the country. Really exciting things linked to renewable energy are happening in so many different port communities around the UK. We hope that that continues to go from strength to strength.

That this House has considered the contribution of ports to green energy.

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