Commons Sense

House of Commons · Ministers' Questions

Energy-intensive Industries: Decarbonisation

Tuesday 16 January 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government committed 20 billion to support early development of carbon capture, usage and storage
  • Government investing in steel industry through levelling-up agenda
  • 2021 net zero strategy reaffirms commitment to work with steel industry on decarbonisation

Topics (select to filter)

Questions & Answers

Q1 Alex Cunningham Lab
Climate Energy
Context

The Member questions the effectiveness of government efforts to support decarbonisation in heavy industry.

Question

What steps her Department is taking to help energy-intensive industries to decarbonise. I welcome the investment in carbon capture—we just need to get on and make something happen there. Teesside is home to some of the most energy-intensive industries in the country, but instead of attracting more of those industries, including primary steel making, we are seeing plants closed down and jobs lost because investors do not see any industrial strategy from the Government.

Answer from Amanda Solloway

As chair of the all-party group on carbon capture, utilisation and storage, the hon. Member will know that the Government have committed £20 billion to support the early development of carbon capture, usage and storage, and up to £500 million for the industrial energy transformation fund to help industry to decarbonise, with phase 3 opening shortly. This Government invest throughout the country with our levelling-up agenda, but we have of course been investing in the steel industry, and we are mindful to ensure that we have the skills that will take us forward for those future requirements.

Partly answered

Not addressed: Specific ask about attracting more industries and driving investment was not fully addressed

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Q2 Alex Cunningham Lab
Economy Energy Business & Trade
Context

The MP criticises the government's approach to industry, citing lack of coherent strategy and high energy costs.

Question

My hon. Friend was absolutely right: we have seen managed decline under this Government, with no coherent industrial strategy, total failure to get the grid connected where we need it, and different Departments giving mixed messages and providing complicated processes to access any support. High energy costs mean that it is cheaper to import many of the goods that until now we have made at home.

Answer from Amanda Solloway

This Government invest throughout the country with our levelling-up agenda, but we have of course been investing in the steel industry, and we are mindful to ensure that we have the skills that will take us forward for those future requirements.

Partly answered

Not addressed: Specific ask about managed decline was not fully addressed

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Q3 Sarah Jones Lab Croydon West
Economy Climate Energy
Context

The MP discusses the impact of high energy costs on industrial competitiveness, citing a report by UK Steel.

Question

Our industry has to pay twice as much on its energy bills compared with European competitors. A recent report by UK Steel stated that our steel producers have to pay £117 million more per year on electricity, forcing the Government to deliver a subsidy through the supercharger, which in turn raises bills for everybody else. Instead of such short-term policies, is it time for Labour's industrial strategy, Labour's grid reform and Labour's mission to become a clean energy superpower?

Answer from Amanda Solloway

This Government have demonstrated our commitment to help across the domestic and non-domestic sectors. However, we also recognise the vital role that the steel sector plays in our economy. In fact, the 2021 net zero strategy reaffirms our commitment to continue to work with the steel industry on decarbonisation.

Partly answered

Not addressed: Specific ask about high energy costs and proposed industrial strategy was not fully addressed

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