Here are the climate-related sections of speeches by MPs during the Commons debate Future of the Gas Grid.
09:31 Josh Newbury (Labour)
Looking ahead, the National Infrastructure Commission and the Climate Change Committee have recognised that gas, in one form or another, will continue to play a vital role in the energy system for decades to come, as a crucial component of a diverse and secure energy supply. All realistic projections for the UK’s energy transition envisage a continued role for gas, alongside carbon capture and storage and hydrogen, which I will come on to.
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09:35 Josh Newbury (Labour)
My fear is that, without a substantial shift in the cost barrier and a clear focus by the Government on inequality, as my hon. Friend said, decarbonisation inequality will widen. That inequality is apparent in the number of boiler upgrade scheme vouchers issued in the three years to March this year. That stood at just 27 for my Cannock Chase constituency but 316—nearly 12 times as many—in North Devon.
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09:37 Josh Newbury (Labour)
Gas is clearly a critical industry for many other sectors in the UK, such as glass, cement, ceramics and paper. Those sectors employ more than 1 million people and support essential supply chains, including in defence. Around a third of gas-reliant businesses say they cannot electrify due to technical or economic constraints. Again, those jobs are often in the high-skilled, high-wage sectors that we need more of. Hard-to-abate sectors such as ceramics, which as a Staffordshire MP I have to single out, depend on parliamentarians to navigate a way to net zero that does not leave them behind, and I believe that low-carbon gases could be the answer.
So what does the future look like? It starts with blending hydrogen into our existing network—a step our European neighbours are already taking. Blending even small amounts can kick-start demand in the hydrogen economy, lower the cost of the fuel and give the industry confidence to invest. I welcome the Government’s backing for the creation of a core hydrogen network and the repurposing of parts of the existing gas transmission system to carry 100% hydrogen to industrial clusters, power stations and storage sites across Britain. The Chancellor’s recent vote of confidence in Britain as a leader in carbon capture, utilisation and storage puts rocket boosters under that and will, of course, enable huge emissions reductions in some of the most greenhouse gas-intensive industries.
What is required for us to decarbonise our gas grid, as other nations, such as the Netherlands, are doing? The replacement of our old iron mains is nearly complete, so that major hurdle is already being cleared. Other core infrastructure will need to accommodate hydrogen, but work is under way. For example, National Gas has already invested £350 million in hydrogen blend-ready compressors, and has demonstrated through its FutureGrid project at RAF Spadeadam that blending up to 20% hydrogen, and even operating at 100%, is both safe and feasible.
I ask the Minister to strongly reject the inflammatory rhetoric around the transition that needs to take place in our gas grid, which is often designed to frame the issue in solely negative terms. Talk of ripping out boilers is as inaccurate as it is worrying for consumers. I also ask the Department to drive forward as quickly as possible the opportunities presented by hydrogen produced by carbon capture and storage and renewable energy. This transformation offers real opportunities, thousands of skilled, well-paid jobs, greater energy security by reducing our dependence on volatile international fossil fuel markets, and of course the chance to lead the world in green technology and innovation. The future of the gas grid is not about choosing between the past and the future; it is about building a bridge to a very British net zero.
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09:43 Seamus Logan (SNP)
New jobs and the associated economic growth will also complement electrification. Many workers in the gas industry have the very skills needed to secure a net zero future, and that future will be built in, and with, communities with a rich energy heritage, especially those in Scotland, as former fossil fuel jobs are replaced with green jobs.
Low-carbon hydrogen is required for all net zero scenarios. The UK needs to act fast and at scale to ensure energy security and independence to meet decarbonisation targets and achieve its legally binding net zero 2050 commitments. I appreciate that the Minister fully understands these matters.
Existing gas infrastructure can be adapted to deliver low-cost and low-impact net zero solutions. As the hon. Member for Cannock Chase mentioned, renewable biomethane gas can play a significantly larger role in the transition to net zero, reducing the overall cost of the transition and benefiting energy customers. Many of our European counterparts are already making very significant progress in these areas, and we need to catch up.
The Scottish gas network is already fuelling 10% of households in Scotland on their network with biomethane, and there are plans to grow that to 1 million homes by 2031. The prize on offer is not only a green gas that can sustainably decarbonise energy-intensive industries and retain jobs, but the growth of a new sector that will add up to 12,000 jobs by 2030 and £13 billion in gross value added.
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09:51 Andrew Pakes (Labour)
Our gas grid, with our world-leading national transmission system as the backbone, will play a leading role in the transformation of our energy network. As the Climate Change Committee recently said, many industries—such as those that I have just named—simply cannot fully electrify; they will always need a form of gas to keep their operations running. The discussion on the future of the gas grid is not about whether it will continue to exist, but about what will flow through it—natural gas, as we see today, or clean, home-grown forms of gas, such as hydrogen, in the future.
This is not just wishful thinking or some hypothecated plan for 10 or 20 years’ time. It is happening right now in places such as my constituency. Peterborough is fast becoming the King’s Cross of hydrogen—a hub where innovation, infrastructure and ambition meet. At the Peterborough gas compressor station, the crossroads of our national transmission system, National Gas, as my hon. Friend the Member for Cannock Chase said, has already announced £350 million to install new, state-of-the-art hydrogen-blend-ready turbines—an investment that initially will create 100 jobs and apprentices in Peterborough, with the potential to grow more across the UK. That investment not only will help locally to create jobs, boost the economy and grow our skillset, but will be vital in delivering the Government’s green growth mission nationally. Today that compressor station moves natural gas across the country to fuel heavy industry and power stations, but it is now able to move hydrogen instead, starting with a blend, and eventually moving to 100% hydrogen if we get there and decarbonising the country while protecting jobs in industry in all parts of the United Kingdom. That is the role Peterborough is playing in the green transition, and it is the future of the gas grid. Such projects show that hydrogen has a critical role to play in the future of British energy. I am proud that my constituency is playing a key role in supporting this Government’s ambitions and that transition.
However, to really kick-start that revolution there are some quick, easy actions that the Government can take. I have a few questions, which I hope the Minister will be able to expand upon in his remarks. Can the Minister confirm when we might see the release of the consultation on hydrogen blending into the gas transmission system, which was promised by the last Government and, we are told, may be coming shortly? That would help kick-start the hydrogen economy and unleash a wave of investment in Britain. What are the next steps in the Government’s plans for a core hydrogen network, as recommended by the Climate Change Committee and others, and how will that build on the exciting and excellent steps we have seen in recent days with Cadent and others through the Government’s announcements around hydrogen? Finally, what assessment can the Minister give us of the skills need and skill potential in communities such as mine that are crying out for good, decent, unionised opportunities that the gas transition could provide, not just in Peterborough but throughout the UK?
It has been a pleasure to speak with passion about my constituency again this morning, and also with passion about this Government’s drive to deliver us the green transition. Gas networks have helped build our industrial past and our current prosperity. Our gas networks of the future have the ability to power our transition and movement to net zero, while bringing communities with us.
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Jim Shannon (DUP)
If we want to be progressive and visionary in this House, which we do, we need to look to the future for the things that are important. All areas of the United Kingdom are adapting their own strategies to contribute to net zero. Northern Ireland has set a target of net zero emissions by 2050, and developing renewable energy will be a key part of those plans. It is very important that we play our part. The hon. Member for Peterborough (Andrew Pakes) referred a number of times to the whole of the United Kingdom. He is right, because like me and others in this Chamber, with one exception, we are committed to this great United Kingdom of Great Britain and Northern Ireland and what we can do better together—not that we are better than anyone else, by the way. We see the advantages and it is important that we look forward.
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Jim Shannon (DUP)
The operators pointed to research by the Centre for Advanced Sustainable Energy Research, which shows that biomethane has the potential to supply 6,000 GWh a year, equal to about 80% of the current gas distribution network demands. That shows the potential, and that it can be done. It would reduce Northern Ireland’s CO 2 emissions by some 845,000 tonnes per annum, a fantastic contribution to net zero targets. That shows how Northern Ireland and the UK can work better together and contribute to net zero targets collectively, with advantages for us all. What is done here in England helps us in Northern Ireland, and vice versa.
I look forward to hearing and witnessing how those developments play out in the future. There is so much that the devolved Administrations and institutions in Scotland, Wales and Northern Ireland can do to play a role in the transition to net zero, and this is one of those ways. I ask the Minister very kindly to engage, as I know he does, with the Department of Agriculture, Environment and Rural Affairs and the Department of Enterprise, Trade and Investment back home to ensure that we can be leaders in our green and net zero plans together. Within this great United Kingdom of Great Britain and Northern Ireland, we can do that. Even our friends in Scotland can benefit and help us to benefit. That is the goal I try to achieve in this place.
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10:05 Tom Collins (Labour)
Electrification is inevitably going to be a go-to tool for decarbonising many parts of our economy, but it is equally clear that it cannot do everything. First, gas can do things that electricity cannot. Industry needs it: around half a million businesses in the UK currently rely on gas for their operations, and around 30% of those say that electrification is simply not feasible for them, technically or economically. Those businesses are spread across our nation, not just in clusters, so a national gas system is the only way for UK industry to not only survive but thrive.
Industry has already indicated that it will be ready, in four years, to make all its boilers 100% hydrogen-ready. It also indicated to a previous Secretary of State that it would provide price equivalence with the products in existence then. I recognise that the Climate Change Committee has tried to move us along by suggesting that there is no role for gas in the future of heat, but as someone who spent my entire career trying to decarbonise heat, I would humbly say that, although that guidance was well intended, it might be misguided.
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Joe Morris (Labour)
I, too, commend the Government’s commitment to clean power and our clean energy mission. I will speak about not industry but the impact of the gas grid on rural communities, because many of my constituents do not have the luxury of being connected to the gas grid. Many of them rely on other means of heating their homes, which are subject to price fluctuations and greater disruption, and then shut them out of opportunities. Before I turn to the impact on rural communities, however, I put on record my support for reaching net zero, decarbonising our economy and decarbonising our energy system; I look back at the relatively halcyon days when it was not politically controversial to say that, and hope at some point that we can get back to that.
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10:15 Pippa Heylings (Liberal Democrat)
Gas has long been the backbone of how we heat our homes and power our economy. However, times are changing, and so must our approach to energy. The Liberal Democrats fully support a transition away from fossil fuels towards clean, home-grown renewable energy to deal with the energy trilemma that needs to be balanced in energy policy: cutting polluting emissions, protecting people, households and businesses from future price shocks, and strengthening our energy and national security through reliable home-grown clean energy supplies.
The illegal invasion of Ukraine by Putin and the resulting spike in global energy prices highlighted just how risky it is to depend on imported gas. The Climate Change Committee, in its seventh carbon budget, made clear that if we transition away from gas, and there were to be another spike in gas prices due to an incident like the invasion of Ukraine, then by 2040 the average household would be 15 times less sensitive to those price shocks and skyrocketing energy costs.
It is clear that ending our overreliance on gas must be a national priority if we are to strengthen energy security, unlock low-carbon alternatives and bring prices down. We need resilience and flexibility in the grid, which is currently provided by gas. The Climate Change Committee and the National Grid have confirmed that, to meet our net zero targets, the UK’s natural gas use must fall by a staggering 90% by 2050, accounting for just 6% of our energy mix—and even then, only if emissions are captured through carbon capture and storage.
Additionally, policy needs to look at demand, including for new homes and house building. The Climate Change Committee has been clear that no new homes should be connected to the gas grid after 2026, yet we have had dither and delay since 2016. Under the Conservatives, we ditched the zero-carbon homes policy and since then we have been building homes without proper energy efficiency and without the connections through solar panels to the grid that we should have had. We are also still waiting for the future homes standard and other standards to be brought forward.
Let me pick up on the comments from the hon. Member for Hexham (Joe Morris) about rural communities. While we are considering the cost of decarbonising heating through solar panels, heat pumps and induction hobs, we also have to consider the many people in rural communities who live off-grid. These households also need certainty and direction from the Government about how they can decarbonise their heating. The situation in South Cambridgeshire is similar to the situation in Hexham, with one in five communities living off-grid and relying on heating oil. They are among 4 million people and 250,000 businesses in this situation across the UK, which are often served by small, rural, family-owned firms. In addition, off-grid homes are some of the most difficult and expensive to decarbonise because of their age, rural location and construction methods.
The National Grid’s “Future Energy Scenarios” report estimates that 1 million UK homes will require alternatives to electrified heating because of the high cost of local grid upgrades. Renewable liquid fuels such as hydrotreated vegetable oil offer a drop-in replacement for heating oil. These fuels have already been trialled in rural communities, and the Governments in Scotland, Northern Ireland and Ireland have embraced them as part of their decarbonisation strategies. We now need a comprehensive UK-wide plan and I hope the Minister will confirm that the forthcoming warm homes plan and future homes standard will also acknowledge and address the specific needs of rural off-grid consumers.
However, although we are hearing about the challenges and barriers, within this transition lies opportunity. That is why the Liberal Democrats are calling for a just transition plan to protect jobs, retain skills and support communities whose economies are still built around oil and gas. That means a national retraining programme to help workers to enter the green economy, incentives for oil and gas firms to pivot towards clean technologies, ending the red tape that frustrates climate tech start-ups, many of which are in my constituency of South Cambridgeshire, and finally—as many Members have already said—investment in hydrogen innovation, where the UK can lead with world-class research in its industrial base. We have heard today about hydrogen blending, which could make hydrogen 20% of the natural gas supply, helping to reduce the carbon intensity of gas and meeting the gas demand in the medium term while we adapt our infrastructure.
Like other Members, I have recently had a heat pump installed, and we are now completely off gas—off the grid—with an induction hob. As many have said, it is not easy, and it can be costly up front. We have to recognise that we need a 10-year emergency insulation programme, with free upgrades for low-income households and those for whom such decarbonisation of heating is not a possibility, which is what the Liberal Democrats have called for. All new homes must be built to the future homes standard, as zero carbon-ready from day one. We need investment in heat pumps and alternatives, with full cost coverage for the most vulnerable, and investment in low-carbon, green and wild hydrogen to provide greater flexibility in the grid. Once again, I thank the hon. Member for Cannock Chase for bringing forward this debate.
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10:25 Nick Timothy (Conservative)
The hon. Members for Strangford (Jim Shannon) and for East Londonderry (Mr Campbell), from the land of my grandmother’s birth, reminded us of the Northern Ireland experience and the importance of geography when we debate energy. That was reinforced by the hon. Member for Worcester (Tom Collins), who rightly said that we will continue to need a national gas grid, because of the nature of the demand for gas. I thought he was right to criticise the Climate Change Committee for proposing no gas for heating homes. I think the hon. Member for Peterborough (Andrew Pakes) put it well when he said that Britain runs on gas. He noted the challenge of reconciling the policy to decarbonise with maintaining fairness for families.
We must always be honest about trade-offs when we talk about policy, which is one of the things about which I will try to warn the Minister. The Government may come to regret their failure to do so on several fronts, particularly on net zero. Sadly, that is a lesson, especially on net zero, that my party has drawn from its time in office, including the unhappy end of that time.
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10:34 Michael Shanks (Labour)
Let me discuss some of the context, and then come on to some specific points raised in the debate. This Government have set out to achieve a once-in-a-generation transition in our energy system to ensure that it is fundamentally fit for the future and resilient and tackles, as the hon. Member for South Cambridgeshire (Pippa Heylings) said, the energy trilemma before us: how we bring down bills, deliver on energy security and tackle the climate crisis.
Through the spending review, we will invest £13 billion into our warm homes plan over the next five years, helping to cut household bills by up to £600 through the installation of energy efficiency measures. We have secured development funding for the Acorn and Viking CCUS projects, which I will come back to later, supporting our clean power ambition and creating jobs and growth at the same time. By harnessing clean power from green sources in the UK, we also reduce our dependence on volatile fossil fuels. Geopolitical uncertainty in the world is never far away at the moment, which underlines how important it is that we move as quickly as possible towards that place.
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10:40 Michael Shanks (Labour)
Looking to the future, the natural gas system is a key enabler of our net zero transition. It will allow us to phase out coal and reduce emissions faster than any other major economy. As the hon. Member for South Cambridgeshire pointed out—I have the figure in miles and she had it in kilometres; that is the difference between Labour and the Liberal Democrats—there are 175,000 miles of pipework in the network associated with various infrastructure. It is an extraordinary thing, and we must remember the absolute scale of it. I pay tribute to the workers up and down the network who keep it going every single day, in really difficult circumstances at times. Some 26,000 workers are employed in the gas system, which demonstrates the size and scale of the industry.
However, it is important that we are not trapped in nostalgia about the system and that we have a clear-headed view of its future. The role of gas needs to change and has already begun to do so, so it is important that we set out how to get the change right. The Government are clear that making Britain a clean energy superpower is one of our defining missions, and that means that gas will play a smaller and smaller role in our electricity generation. That is the right thing to do. In a broader sense, net zero also requires a wide-ranging transformation of the rest of the economy. The transformation will mean a sea change in how infrastructure, industry, business and our homes work. The power sector, domestic buildings and transportation will all have to undergo significant change, and that will require not one solution but many things.
Part of the solution is the warm homes plan, which is about transforming our homes by making them cleaner and cheaper to run. We are also helping to unlock the potential of electric vehicle infrastructure right across the country. New clean heating solutions mean that fewer homes will rely on gas boilers. Our transition presents an incredible opportunity to build on the skills of the existing gas workforce as we build what comes next. That will lead to thousands of new jobs and training opportunities across the country. As we decarbonise industry, we will also see a growing role for carbon capture and low-carbon gases such as hydrogen and biomethane, which will help ensure that we meet our objective of net zero, while still providing secure, reliable and affordable energy.
On the question of blending, a mix of natural gas and hydrogen could be used in gas networks to decarbonise our gas use. The Government are actively looking at the question of blending and considering the appropriate decision points. My hon. Friend the Member for Peterborough (Andrew Pakes)—I think he said his constituency is the King’s Cross of the hydrogen world, which is an interesting analogy—asked about consultation on hydrogen blending. I can say that we will soon be publishing a consultation on transmission blending. On the core network, we agree that many benefits can be achieved from the hydrogen economy, but there are areas on which we require further evidence, as we really want to get this right. We are moving as quickly as possible, but we will need more evidence in some areas.
The Government want to provide strategic clarity on decarbonising home heating to best support our mission. To support that, we are assessing all the latest evidence, and we will consult later this year on the role of hydrogen in home heating. We also plan to bring forward a clear plan for industrial decarbonisation and a renewed industrial decarbonisation strategy, which will set out the strategic direction for our approach with industry.
The Government are enabling the development of the carbon capture, usage and storage sector to create jobs, reduce emissions and put the UK at the forefront of global CCUS. The Government are working on developing the strategic direction of CO 2 transport networks. At the spending review, the Government announced that they will be providing development funding to advance the delivery of Viking and Acorn, with a final investment decision taken later in this Parliament.
We think there is a role for biomethane in decarbonising all end users in the gas grid. It is already being used in the gas network, and we expect it to play a role in reaching our net zero target. It can be used flexibly, and that flexibility is valuable as it enables us to adapt to the hard-to-predict cost curves and deployment trajectories of existing technologies. Our biomass strategy sets out our ambition through to 2050.
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