It is a pleasure to serve under your chairship, Mrs Cummins. I thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing this vital debate. It has been a real pleasure working with him cross-party in the interests
of our two communities, and communities right across the south Wales corridor and the whole of Wales and the United Kingdom. What we are discussing today genuinely has UK-wide significance. We worked together to develop and deliver the successful Celtic freeport bid, and I look forward to further collaborating on maximising the benefits it will bring.
Britain’s ports are both the gateways and the drivers of so much economic activity in the UK and, in turn, are crucial to the prosperity of British people and their families. From the food shipped into Britain’s supermarket shelves to the exporting of British goods sold overseas, our ports play a crucial role both in the everyday lives of families across the UK and in the growth and success of hundreds of thousands of British businesses. As well as adding close to £7 billion to the UK economy, ports employ more than 100,000 people directly, and more than that again in their supply chains, meaning that they are pivotal to supporting local economies and providing communities with good job opportunities. British ports transport around 60 million international and domestic tourists in and out of the country every year.
Today I want to focus on the once-in-a-generation opportunity represented by the new industry of floating offshore wind and the crucial role that the ports will play. The Celtic sea and Wales’s geography offer us a significant competitive advantage that we cannot afford to squander. We must seize this opportunity to place ourselves at the forefront of the green industrial revolution, just as Wales was the cradle of the first industrial revolution two centuries ago. Floating offshore wind has the potential to deliver 16,000 new jobs and could land £1.7 billion of investment in port infrastructure and manufacturing in south Wales. FLOW offers the opportunity to unlock a truly game-changing £54 billion of investment into the UK economy, with the Crown Estate aiming for approximately 25 GW by 2045. Indeed, the first 1 GW of projects alone is anticipated to create 5,000 jobs.
Our Port Talbot port has both the space and the steel to manufacture these giant structures, while Milford Haven, as the right hon. Member has pointed out, can provide energy storage facilities and a whole range of other vital components for this huge opportunity. This is a global market and we are in a global race for green investment. Port infrastructure needs to be ready ahead of time to capture first-mover advantage for Wales, so that we can land investment in port infrastructure and manufacturing to generate good job opportunities and deliver energy security. Without the first-mover advantage, Wales and the UK risk repeating the experience of earlier waves of offshore and onshore wind development, where the jobs and investment ended up going to other countries.
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?
Secondly, Wales must get its fair share of the floating offshore wind manufacturing investment scheme programme. There is a pot totalling £160 million for the whole of the UK. Welsh ports must get their fair share of that pot. It is critical that the UK Government understand the enormous potential for Welsh ports to deliver this game-changing new industry. We need the UK Government to back the two very strong bids from Port Talbot and Milford Haven for FLOWMIS funding. Could the Minister update us on FLOWMIS and assure us that Wales will get its fair share?
Thirdly, Aberavon in Wales will secure maximum benefit from floating offshore wind only if the developers are held to firm supply chain commitments. The Crown Estate must get this right when awarding licences. We must ensure that local supply chains are developed for the manufacture of turbines and their sub-structures as well as their operation and maintenance. We cannot have a situation, for example, where these structures are built in China or somewhere else and merely assembled and serviced at Welsh ports. That is the case with the Scottish SSE wind farms, for example, which use no British steel whatever. We must use local steel. Tata Steel can adapt and reconfigure its production processes if it knows what the order book looks like, but it needs that advance warning. Could I ask the Minister to tell us what steps he is taking to secure those supply chain commitments right from the outset of the Crown Estate licensing process?
2.59 pm
Sitting suspended for a Division in the House.
3.13 pm
On resuming—