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Security of Supply

Market pressures certainly do operate in that way. As my hon. Friend the Member for Stoke-on-Trent, North (Joan Walley) pointed out earlier, speculation in the market causes certain problems. Companies in her constituency have closed down and sold gas on, so there are difficulties associated with the market mechanism that need to be looked at. When gas capacity increases by 28 per cent., there is likely to be another dash for gas, unless a mechanism is put in place to prevent it. Given the likely simultaneous decommissioning of coal-fired and nuclear power stations, unless we can restrict that dash for gas, 70 per cent. of our electricity generation needs may have to be met by imported gas. In the first instance, such gas will come from Norway, but within five years Norwegian gas is likely to become very scarce, so we will be dependent on gas coming down the pipeline from Russia. Russia has become an energy superpower that will provide energy for the whole of Europe. There are real dangers in that. The phenomenon of terrorism and the problems that may arise because of international disputes put us in a very vulnerable position. I therefore hope that during the review, the Minister will look seriously at the question of how we move forward. One driver will be climate change, which will be the big issue for the Minister to examine when he considers all the factors that impact on the review. As was pointed out in strong terms by my hon. Friend the Member for Barnsley, Central (Mr. Illsley), coal is seen as a dirty fuel and we have got to get beyond that. The increase in the global energy market over the next 30 years is likely to occur in carbon fuels, and we have to be able to burn those fuels in a way that is compatible with our environmental aspirations. Clean coal technology provides that opportunity, and it is already here. Mitsui Babcock is producing supercritical boilers with a carbon capture facility; some are already being exported to China. We need to incentivise generators to invest in new clean coal technology. The first phase will be supercritical boilers with carbon capture, and the second is likely to be integrated gasification combined cycle units. I understand that four projects have already been given approval, so we are likely to see developments there too. I believe that clean coal technology can help to provide the solution that the Minister is looking for. It would allow us to burn coal, capture the carbon and use that carbon either for sequestration in the North sea or in other projects—for example, infusing carbon dioxide into coal seams to enhance the gasification process. There is already a project running in Scotland; Strathclyde university is involved, and it may go commercial.There are a number of ways in which we can deal with carbon dioxide. Clean coal technology will help us to provide a sound energy base, but it also provides another opportunity. If we are to deal with the global carbon dioxide problem, we shall have to transfer technology into the countries that now use enormous amounts of coal, such as China, India, Brazil and the up and coming new economies. We need to invest in clean coal technology, and I hope that the Minister will see it as part of his solution. The UK coal industry was privatised by the Conservatives in 1994. They privatised it into a failed market situation when it was below its critical mass, and they knew that it would wither away. Since then, the industry has been dependent on the Government, and had it not been for the present Government, it would already have passed on. There are now seven producing collieries, six in England and one in Wales, and there is a possibility of a new mine being sunk in Margam. That will be done in partnership with Corus, and it is for metallurgical coals. The English coalfield needs investment. I hope that my hon. Friend the Minister is prepared to make that investment to ensure that it can continue to make a contribution to energy security.