Offshore Energy: Humber

Business, Energy and Industrial Strategy – in the House of Commons at 12:00 am on 31st January 2017.

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Photo of Martin Vickers Martin Vickers Conservative, Cleethorpes 12:00 am, 31st January 2017

What assessment he has made of the effect of the offshore energy sector on the Humber region.

Photo of Nick Hurd Nick Hurd The Minister of State, Department for Business, Energy and Industrial Strategy

The UK is the world’s largest market for offshore wind, and the Humber energy estuary, in my hon. Friend’s own words, is “ideally positioned” to serve that sector. The Secretary of State and I saw that when we visited the new £310 million Siemens turbine blade factory, which has created more than 1,000 very valuable new jobs in the area.

Photo of Martin Vickers Martin Vickers Conservative, Cleethorpes

This afternoon the Humber local enterprise partnership and Humber MPs are staging a showcase event to highlight the assets of the energy estuary. Can the Minister assure business leaders that the Government will continue to support the offshore centre, which is based in northern Lincolnshire, and the wider Humber region? Will he or one of his colleagues find time to visit the event this afternoon?

Photo of Nick Hurd Nick Hurd The Minister of State, Department for Business, Energy and Industrial Strategy

Yes to the event, and yes to the assurance that my hon. Friend seeks about continued support. On top of the growth deal, the city deal and the enterprise zone programme, he will be well aware of the very significant Government commitment to future contract for difference auctions worth £730 million for less mature renewable technologies, including offshore wind. I hope he welcomes that.

Photo of Nicholas Dakin Nicholas Dakin Opposition Whip (Commons)

What steps are the Government taking to ensure the highest possible UK content in the steel used to build the energy infrastructure in the Humber?

Photo of Nick Hurd Nick Hurd The Minister of State, Department for Business, Energy and Industrial Strategy

That is an extremely important point, and it is part of our calculation of the return on the investment made by the British taxpayer. Good progress is being made, and analysis shows that aggregated lifetime UK content in operating windfarms is 43%, against a track target of around 50%, and the proportion is higher for the value of operations and maintenance contracts, which run at about 70% of value at the moment. This will be a key area of our focus as we go forward with the industrial strategy.