A plan for the future
The Tank Storage Association also welcomed the focus on economic growth, investment and skills. Peter Davidson, Chief Executive of the Tank Storage Association, said: “Our bulk storage and energy infrastructure sector has a key role to play in driving economic growth, boosting investment and supporting the transition to net zero. We welcome the focus on economic growth, investment and skills, as well as plans to establish an Industrial Strategy Council.
“The TSA has called for a plan for the future that recognises the significant contribution of the bulk storage and energy infrastructure industry and its innovative capabilities to take full advantage of the many opportunities in the transformative journey ahead. It has also called for close collaboration and partnership to ensure that the sector becomes a driver of change and contributes to shaping the next decades. We look forward to working collaboratively with government and stand ready to share our sector’s expertise and insights.”
Economic growth
Michelle Gardner, Deputy Director – Policy at Logistics UK commented, highlighting the Government’s plans for economic growth: “The Government has rightly put economic growth at the centre of its ambitions through its first King’s Speech, and our members will welcome the new legislation to accelerate the delivery of critical transport and energy grid infrastructure. With the right planning policies, the logistics sector can optimise the movement of freight and speed up progress to net zero, helping to kickstart economic growth throughout the whole of the UK.
“It is encouraging that local leaders will be empowered to deliver for their communities through credible economic growth plans. Regional mayors and local areas have the opportunity to work with the logistics sector to unlock productivity benefits for all businesses, in their regions and beyond. However, it is essential that Local Growth Plans are robust and ensure further English devolution genuinely supports the economy rather than creating patchworks of rules that add to the cost of doing business.
“Employers must be at the heart of a reformed workforce training offer, so Skills England is a welcome step as is the reform of the Apprenticeship Levy, which we have called for over many years. Since the levy was introduced in 2017, transport and logistics businesses have paid £825 million in levy funds yet have only been able to recover an estimated £250 million in the same period.
“To succeed in kickstarting growth, the Government must tackle costly trade friction with the EU, so it’s positive to hear the Government’s commitment to resetting the relationship with European partners. Key to this is ensuring there is a clear plan to prevent the border disruption expected in the autumn when the EU Entry Exit System is introduced in addition to the next phase of the Border Target Operating Model import controls.”
Hydrogen infrastructure
Paul Willacy, managing director of waste-to-hydrogen firm Compact Syngas Solutions, added his thoughts, highlighting the need for a national hydrogen infrastructure: “Labour’s plan for a clean energy transition is to be welcomed, but if the UK is to achieve this goal, the Government needs to get investment to the right places now.
“The heavy vehicle transport industry is one area where significant progress could be made by replacing diesel with hydrogen, but national infrastructure is still years behind where it needs to be.
“Large-scale production projects are at risk of becoming white elephants if they can’t be efficiently connected to where the hydrogen is needed.
“The issues caused by a lack of hydrogen infrastructure could be supported in the interim by producing and delivering hydrogen gas off grid and at a local level. Smaller production facilities dotted around the country would negate the need for costly pipelines in hard-to-reach areas and should be part of the Government’s plans for the coming years.
“The UK’s hydrogen industry is growing rapidly, but everyone involved is crying out for the Government to take the reins and lead from the front. There are so many pieces to the jigsaw puzzle that it needs political leadership to present a picture of the future that everyone can get behind.
“The infrastructure needed for a hydrogen-fuelled future crosses boundaries of planning, permitting and local government and community issues. It’s a hugely complicated issue that can’t be driven forward by one entity alone. To be successful, the hydrogen industry needs a holistic plan that brings technology providers, producers and suppliers together.”
GB Energy
Malcolm Donald, Edinburgh-based partner at UK law firm Burges Salmon also commented, saying: “We are encouraged by the formal announcement of the proposed creation of GB Energy in the King’s speech.
Whilst we await more detailed information on the precise scope of what GB Energy will offer, it is encouraging to hear that the intention remains to make significant investment in the UK energy industry, with a focus on renewables. Given the importance of the UK energy industry in delivering the energy transition, it remains critically important for the new UK Government to engage and work closely with the industry to ensure that there is further investment, to provide support for the highly skilled workforce and supply chain, to prioritise critical infrastructure projects and to ensure that there is sustainable economic growth which can help drive the energy transition forward.
“We are further encouraged by the confirmation that GB Energy will be based in Scotland. Scotland has a landscape that sets us up quite well to get us to net zero and GB Energy will play an important part in supporting and broadening that mix of different ways to get to net zero, including onshore, offshore, hydrogen and natural capital for example.”
Image of Peter Davidson, Chief Executive of the Tank Storage Association provided by the TSA