Big businesses on the Humber have told how they need bold decisions to enable them to get on with key decarbonisation projects, to propel the UK to Net Zero.
Key figures from leading players have met with Shadow Energy Secretary Ed Miliband, hosted by the Hull & Humber Chamber of Commerce. Representatives from Ineos Acetyles, Equinor, Drax, Orsted, Able UK, Prax Group, Phillips 66, Lindsey Oil Refinery, Smith & Nephew, Reckitts, Spencer Group and others made clear requests for bureaucracy to be replaced with in-roads into key infrastructure.
The former Labour Party leader, who has praised the Humber 2030 Vision document having seen it launch in Westminster, listened carefully and questioned the company representatives in turn to establish precisely what blocks industry is facing and what needs to happen to get things moving faster.
Read more: Ed Miliband on Humber 2030 Vision - big interview
He heard how the leaders around the Chamber table have billions of pounds to invest in the Humber, but much of that would be anticipatory he was told, and there was a need for certainty from government that if that investment is made, contracts would follow. Businesses needed to have that confidence in place to bring those investment plans to fruition, was a key message.
David Brooks, chief executive of Ineos Acetyles UK - recently enhanced on the Humber with the BP acquisition - said: “The Government saying yes or no was very important. If you have ambitions for carbon zero in the Humber for 2030 BEIS needs to step up. Sometimes investment carries risk, but sometimes you have to take risks. The private sector does demand action and promptness to commit, otherwise they lose the confidence to invest.”
Former North Lincolnshire planning head Marcus Walker, who has recently returned to the region as Humber development director at Able UK, echoed this. “The Government needs to underwrite the risks to expand all of the Humber ports, at the minute this is not happening,” he said.
Host, Chamber chief executive Dr Ian Kelly, stressed: “The Chamber originally created the Enterprise Zones around the Humber when it established the Humber LEP at former Secretary of State Greg Clark’s request. These are now home to Siemens in Hull and Orsted in Grimsby. We can move further and faster on carbon zero Humber if Whitehall and Westminster can be bolder in their decision making.”
The two major Humber refineries were represented by Jenny Sutcliffe, principal consultant for regulatory affairs at Phillips 66, and Luc Smets, LOR general manager. Ms Sutcliffe the Humber Refinery really needed a decision on Track One and then on Track Two plans for carbon capture and storage, and said it was important to make sure that the project is there but that they need that commitment from BEIS. “The Government will determine whether they meet requirements, but the refineries could progress work more quickly if the civil servants would give the green light more rapidly,” she added.
It was also highlighted that both refineries were having difficulties finding skilled people and contractors to work on the shutdowns and they needed to bring people in from abroad which is now very difficult after Brexit.
Emma Toulson, lead stakeholder advisor for Orsted told the meeting: “We have invested £14 billion in infrastructure and created the largest offshore wind hub in the world and it’s based in Grimsby. Hornsea Three and Four will cost another £14 billion which then becomes £30 billion investment potential, but we need access to the grid and planning permissions if we are to reach our ambition of 50GW by 2030 – it’s not too far away now! We all need to work together to decarbonise the Humber.”
Jason Speedy, from Groupe Atlantic, raised the issue of transitioning to heat pumps and other domestic fuel sources, with the Hull Ideal Heating plant leading the way on manufacturing. “There will be no natural gas boilers sold from 2025 which is leading to great uncertainty for the industry,” he said. “They are trying to incentivise the boiler manufacturers to produce heat pumps instead of gas boilers, but consumer take-up is still very low because of the cost.”
Skills shortages were also covered with Mr Miliband, who promised to return and described it as a “really useful discussion” he wants to continue, said: “This isn’t about party politics. The decisions that are needed are in the national interest and I want to push the current government to make these decisions”.
Offering the vote of thanks, former Scunthorpe MP Sir Nic Dakin thanked Ed for coming to the Humber to meet our business leaders. He said: “The Humber is up for the challenge and we need to make it happen – together we can!”
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