UK Parliament / Open data

Energy Bill [Lords]

Proceeding contribution from Lord Grayling (Conservative) in the House of Commons on Tuesday, 9 May 2023. It occurred during Debate on bills on Energy Bill [Lords].

I am grateful to my hon. Friend for his comments. He is an experienced former aviation Minister and has huge knowledge of this area—he is absolutely right.

This industry is going to happen. Indeed, it is already developing in fledgling form around the world. It will certainly happen in the United States, where huge effort has been put into making it a reality. We have to have that industry here. There is no point seeing yet another industry developing around the world in this new technology and standing to one side and saying, “Well, other people can do it—we will bring it in by tanker.” That would be a betrayal of our aviation industry and a betrayal of the industrial base of this country, and we must not let that happen.

What do we need to do? We need to get this technology —this industry—up and running in the UK with something we have done in a variety of areas. We need a contracts for difference scheme. It is an attainable option, and has been done by Government before. I very much hope that the Government—this Department in partnership with the Department for Transport and the Treasury—will take that road. However, we cannot wait very long. It has to happen soon, and we have to put down a marker that says that we are going in that direction. We need to start doing the work on what a detailed scheme would look like.

The aviation industry is desperate for that to happen. The Minister knows, as do other Departments that have been looking at this—the Department for Transport has been doing so, as has the Treasury—that it does not have to be done at the expense of hydrogen. There are people who say that SAF does not really matter because we are going to do hydrogen, but we need both. We need short-haul planes powered by hydrogen and we need long-haul planes powered by SAF. That is the future of aviation.

I hope that the Minister will be able to give us comfort today, and as the Bill proceeds through the House, that the Government as a whole will deliver that. However, I would put down a marker. If by Report stage we do not have some clear signposts that the Government are going in that direction, I will table an amendment that will mandate them to introduce a contracts for difference scheme in the next 12 months, and I will seek the consent of the House for that. I know that Conservative Members who support my concerns will support such an amendment.

I am lobbing this at the Minister, saying that we need to get on with it, but may I ask him, over the next few weeks, as the Bill goes into Committee, and as he

discusses with ministerial colleagues the way forward for the Bill, to seek to make a firm commitment to a contracts for difference scheme for SAF so that we can deliver for this country an industry that will be vital for the future?

8.12 pm

Type
Proceeding contribution
Reference
732 cc280-1 
Session
2022-23
Chamber / Committee
House of Commons chamber
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