Written evidence submitted by Mineral Products Association (MPA) (GRI0086)
Introduction
The Mineral Products Association (MPA) is the trade association for the UK mineral products sector, including the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. Our sector is the largest supplier by volume to the UK construction sector, producing around 380 million tonnes of mineral products per year for construction uses.
The sector uses electricity to operate industrial machinery, such as to mill and blend clinker into cement, and electricity consumption is likely to increase in the future due to the implementation of decarbonisation measures. This could include CCUS, on-site generation of hydrogen, greater use of waste derived fuels, and the potential electrification of some of the sector’s fleet of vehicles, non-road mobile machinery, and other industrial processes. The sector also has significant potential for the generation of on-site renewable electricity.
Grid connections
It is likely that many sites in the mineral products sector will need to upgrade their electricity connection to the distribution network in the future.
As carbon dioxide emissions are unavoidable from the chemical processes involved in cement and lime production, carbon capture, usage, and storage (CCUS) will be a vital component of the decarbonisation of both industries.(1)(2) CCUS deployment requires electricity to operate, and CCUS could potentially double the electricity consumption of a cement plant.
Therefore, it is likely that many cement and lime plants will need to upgrade their connections to the grid in order to accommodate CCUS, which some plants in the sector plan to have deployed by 2030.(3)(4)
Many quarries have historically operated without a grid connection, but businesses across the quarrying industry are considering electrification as a low-carbon alternative to fossil fuels, particularly for non-road mobile machinery (NRMM) and industrial equipment such as conveyor units. Electrification is under particular consideration given the limited supply of alternative low-carbon fuels such as hydrogen and biomass.
This means that many quarry sites are likely to need connecting to the grid in the near future. However, this is complicated by the fact that quarries are mostly based in rural areas, and are inherently more transient in their operations, which move as reserves are exhausted. In addition, many quarries have a time limit on extraction activity with no guarantee of extension. This is particularly the case for sand and gravel extraction.
It is imperative that the cost, time delays and bureaucracy associated with obtaining or upgrading a connection to the grid is reduced, in order to facilitate electrification and, by extension, decarbonisation within the mineral products sector. We note the recent recommendations from the Electricity Networks Commissioner that consider how to accelerate the deployment of strategic electricity transmission infrastructure, and the inquiry should consider if proposed changes are sufficient to achieve the Government’s decarbonisation objectives.(5)
On-site renewables
Many businesses in the mineral products sector, and particularly larger sites such as quarries and cement plants, have an interest in installing renewable electricity generation capacity on-site in order to satisfy some of their electricity needs, reduce their demand on the grid, and potentially contribute low-carbon electricity back to the grid.
For example, MPA member Hanson UK has installed 8 MW of solar panels at its cement site in Ketton, which contributes 10% of the site’s electricity needs.(6)
However, a number of barriers continue to frustrate the more widespread installation of renewables on mineral products sector sites. This includes the de facto ban on new onshore wind capacity in England, which should be lifted.
The Government should act to reduce the planning and permitting barriers that deter investment in on-site renewables. It could go some way towards this by classing smaller solar or onshore wind installations as permitted development, although deeper reform would be necessary to help facilitate larger installations.
Moreover, addressing the issues around obtaining or upgrading a grid connection would help facilitate larger installations that could contribute electricity to the grid.
Offshore wind and concrete
It is important to note that many future electricity generation capacity projects, particularly new nuclear and offshore wind, will include concrete in their supply chain.
In particular, using concrete for the substructures of floating offshore wind turbines presents a major opportunity for a local and reliable supply chain for this infrastructure. Scaling up the concrete industry near major offshore wind sites, as well as developing port infrastructure in the area, will enable concrete-based floating offshore wind to contribute to the future grid.(7)
Regional / nodal pricing
We have reservations about locational pricing via the wholesale market price for electricity consumers, especially nodal pricing. Our members’ locations are primarily determined by raw materials, transport infrastructure and relative location to customers. This is even the case for energy intensive products such as cement and lime, given the volume of raw materials involved in the process. In addition, it is unlikely that existing sites will relocate due to the capital investments already made.
Conclusion
The grid’s importance to the mineral products sector is highly likely to grow in the coming decades, due to increased electricity requirements associated with decarbonisation measures, electrification of NRMM and other on-site industrial processes, and the potential for on-site renewable electricity generation. The grid will need to reliably meet these increased requirements from our sector and others, including during peak periods of demand.
Significant barriers remain in all these areas, primarily associated with the cost of establishing or upgrading a grid connection, alongside planning and permitting. Government action will be essential to reducing these barriers, and enabling the sector to deploy CCUS, switch away from fossil fuels, and install on-site renewable capacity.
August 2023
Links
(2) https://www.mineralproducts.org/MPA/media/root/Publications/2023/Lime_Net_Negative_2040_Roadmap.pdf
(3) https://www.padeswoodccs.co.uk/en
(4) https://www.peakcluster.co.uk/
(6) https://www.2015.hanson-sustainability.co.uk/en/ketton-solar-plant-wins-industry-award.html
(7) https://celticseapower.co.uk/wp-content/uploads/2023/07/Concrete-for-Celtic-Sea-FLOW_PP_FINAL.pdf