Chris Haskins: Chance for the Humber to catch a wind of change

Global recognition that the supply of energy is probably the greatest threat to economic development may well transform the economic and social prospects for the Humber Estuary. Siemens, one of the world’s largest manufacturers of turbines and generators, is investing in Hull because offshore wind farms will be a crucial part of Europe’s energy strategy.

The North Sea’s geology and geography makes it the most suitable location in the world to develop this technology so that, in time, it will be more cost effective than coal, oil and gas.

And the Humber Estuary is the most attractive place to manufacture and assemble the enormous structures – as high as the Eiffel Tower – because of its proximity to the sites, and the amount of space available, on land and water.

The Humber Estuary is not just about wind-farm energy. Historically, electricity generation was located close to the coal mines and as a result about 25 per cent of the nation’s electricity is created within 30 miles of the Humber Estuary.

Originally much of the shipping activity was about coal exporting.

Now, because of the virtual demise of the British coal mining industry, the ports of Immingham and Hull import eight million tonnes of coal a year.

One fifth of the UK’s natural gas is piped from the North Sea and landed in the Humber. Two oil refineries at Immingham provide 25 per cent of the country’s petrol, diesel and aero fuel requirements. A substantial bio fuel plant recently opened in Hull. The Drax power station is converting half of its capacity from coal to biomass and most of the material it needs, will be shipped from North America to the Humber.

Because of the availability of competitively priced energy, several substantial investments in chemicals have taken place in the past 40 years. The Tata Steel plant in Scunthorpe, though employing fewer people than before, remains crucial to the local economy.

The Siemens investment will be the first of many.

An even bigger proposed development by Able UK, near Immingham, embraces 350 hectares – larger than the whole of the Humber gateway.

In all, the potential is to create 10,000 well-paid jobs, assuming the region provides the quality of trained workers needed to satisfy the demand. Furthermore the benefits to existing businesses will be substantial.

Directly, these new factories will consume large quantities of steel from the Scunthorpe plant.

The chemical industry, also under intense pressure from American low cost energy competition, should get some relief.

And, indirectly, thousands of jobs will be created in the supply chains and service industries, assuming that these new workers spend their money in the region.

But a lot still needs to happen in order to realise these aspirations and opportunities.

First, whilst there are still questions about some aspects of the energy mix, including the impact of fracking, the viability of nuclear and the environmental benefits of biomass, the long term expansion of off-shore wind in the North Sea should not be in doubt, environmentally, politically (security) and economically.

Second, the Humber must up its game, speeding up the planning and regulation process (there are too many unnecessary delays and timewasters) removing other obstacles to development (the release of under-utilised public and private land) and upgrading the infrastructure (including some essential flood-proofing).

We need to market the potential of the estuary more effectively as a place to do business and a place to live; we must tackle the problems created by major new inward investment for existing businesses, notably in the skills arena. We must transform the skills level of existing and future workforces.

We are moving in the right direction. Traffic is significantly rising across the Humber Bridge thanks to lower tolls as a result of the Government writing off half of the crippling debt.

Agreement has been reached to electrify the railway line from Selby to Hull, thus improving accessibility and connectivity. Hull has recently been made the City of Culture for 2017. Offshore maintenance activity in Grimsby is already flourishing. Hull City football team seems set to stay in the Premier League and may participate in Europe thanks to its success in the FA Cup.

We will only succeed if we can build on these developments and transform a region plagued by low self-confidence and self-esteem, into an area which is competitive, self-confident and attractive for potential investors and jobseekers alike.

Chris Haskins

Lord Haskins of Skidby is chairman of Humber LEP.