Jayne Kirkham

I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing this important debate, which is of great interest to me as an MP from Cornwall and co-chair of the all-party parliamentary group for the Celtic sea. I will probably replicate some points that have been made but it is telling that we are all calling for similar things, so I will say a little more about some of the industry’s asks. Cornwall is ideally placed to play a leading role in the development of the marine renewables industries. We have 400 miles of coast, strong tides, south-westerly winds and proximity to the Celtic sea. We are in a prime location for offshore wind and tidal stream energy. The port of Falmouth in my constituency could service floating offshore wind turbines, and Truro and Falmouth is home to world-leading businesses such as Inyanga and Tugdock, which are at the forefront of marine renewables innovation. However, the tidal and wave industries, like floating offshore wind in the Celtic sea, need support from the Government and particularly ringfencing for AR7, to which I will return. As hon. Members have noted, tidal stream is a highly reliable method of energy generation because it is unaffected by weather, offers a stable energy supply and complements other more intermittent renewable sources, such as wind and solar. It also presents a number of benefits to UK jobs, supply chains and energy security. Tidal stream projects are being deployed with over 80% UK supply chain content, which is a much higher percentage than for some other renewable technologies. However, tidal and wave are smaller, less developed industries than solar or fixed offshore wind. Tidal energy currently forms less than 0.01% of the UK’s electricity generation, but the UK Marine Energy Council says that it has the potential to meet over 10% of demand. I welcome the Government’s recent clean power action plan, which recognised the potential for tidal stream and floating offshore wind to be important components of long-term decarbonisation in the UK. However, for that to happen—and if marine renewables are to follow a similar cost-reduction pathway to solar and fixed offshore wind—the marine renewables industry does need Government support. From AR4 onwards, tidal energy has benefited from ringfencing, which led to Inyanga, based in my constituency, being awarded CfDs in AR5 and AR6 for their HydroWing technology, which will be deployed in Morlais, Wales. Previous allocation rounds show that the sector can respond successfully to a ringfence. Inyanga had the only successful pot 2 offshore project to win a CfD in AR6. The ask of Great British Energy is to commit, say, 3% of its budget to investing in marine energy because tidal stream projects are being deployed with over 80% UK supply chain content spend, which is significantly higher than for other renewable technologies. GB Energy should seek to embed and accelerate deployment of that UK content in projects installed here and around the world. It could take equity stakes, under commercial terms, in projects that have secured a CfD. Other hon. Members have asked about a Government-industry marine energy taskforce. The purpose of that taskforce would be to bring together key players from Government, industry, regulatory and other relevant organisations to enable marine energy development—the embedding of that UK content in projects deployed here and around the world—to support the Government’s ambition to make the UK a clean energy superpower. I have also been pushing for that kind of masterplan and leadership for floating offshore wind. Others have asked about the 2035 targets, including a 1 gigawatt tidal stream and 300 megawatts of wave energy deployment. Setting those targets will boost investor confidence and support investment in coastal communities and beyond. The UK could also introduce innovation funding, particularly for marine energy. Between 2017 and 2022, such projects received only £17 million in innovation funding. Wave energy projects received £57 million of funding, £39 million of which came from the Scottish Government. That targeted innovation funding has been proven to reduce the overall cost associated with commercialising these emerging renewable technologies. Two tidal scheme projects in Scotland were successful in the last Horizon Europe call, which demonstrates both the importance of a close UK-EU relationship on marine energy and the attractiveness of the UK as a destination for that innovation funding. I cannot stand here and talk about renewable energy in the sea without mentioning floating offshore wind, so I will reiterate some of the asks that that industry would have as well to kick-start floating offshore wind, particularly in the Celtic sea. Like tidal and wave energy, floating offshore wind needs a ringfenced element in the AR6. The one-size-fits-all route is disadvantaging the Celtic sea due to the comparative lack of port infrastructure, skills and wider supply chain support. We are a virgin area; unlike Scotland, we have not had oil and gas before, so we are starting from scratch. We need technological and geographical ringfencing, CfDs for the test and demo sites in the Celtic sea, and support for stepping-stone projects such as TwinHub, which has a CfD but is facing the challenges of developing that supply chain and the now out-of-date cost of the CfD. The £1.8 billion ports fund can now be distributed quickly in a multi-port strategy that was developed, allowing ports across the region, such as Falmouth in my constituency, to work together to prepare for and benefit from the opportunities that floating offshore wind presents. The Crown Estate Bill passed through the House recently. Those option fees could, for example, be diverted to local supply chain building. Additionally, outside of the industry, other hon. Members have mentioned that we need that strategy for the ocean as a whole. It is crucial that we have a long-term marine spatial strategy, so that everything in the ocean has its place and we balance energy generation with important industries such as fishing, and with protecting the natural environment. Creating clear frameworks for each sector would give certainty to developers, which would help speed up the deployment of these renewables projects. Co-ordination would involve linking existing plans, such as the Crown Estate’s whole of seabed programme, the strategic spatial energy plan and DEFRA’s marine spatial prioritisation programme, ensuring that the UK harnesses the benefits of marine renewables while supporting fishing and safeguarding marine habitats.