The Humber’s freeport status looks set to be granted in days, with strong backing emerging from government as the rubber stamp is awaited.
Levelling Up Minister Dehenna Davison confirmed the full business case is in the final stages of approval in a written address to a strong regional delegation at the House of Commons.
The former University of Hull student had been due to deliver the keynote speech at a special gathering, with Cleethorpes MP Martin Vickers stepping in to deputise after she was taken ill. Her vision for what can be achieved was clear as representatives from the CBI, British Chambers of Commerce and senior delegates of key companies in the Net Zero push listened intently for news on the key pillar in the decarbonisation strategy, with potential to create thousands of jobs, safeguard more, and welcome millions of pounds of investment.
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Ms Davison said: “We see freeports as key to making our levelling up mission a success, key to creating more of the high-skilled, high-wage jobs our economy needs and building a net zero future. One in which the 海角视频 has its own cheap, reliable, green sources of power and is no longer dependent on other countries for its energy needs.
“With the present challenges we face – the double-edged sword of climate change and the rising cost of living – freeports couldn’t matter more to the future of places like the Humber. Which is why we want to help build the broadest possible coalition behind our freeports programme.
“With tax reliefs, local retention of business rates, and a simplified customs procedure, we believe freeports can unlock the full potential of places like the Humber and the ports of Goole, Grimsby, Hull and Immingham. And what potential there is; the Humber ports complex is one of the busiest in the 海角视频, it is a powerhouse of global trade, accounting for roughly 35,000 local jobs and nearly a quarter of all goods being shipped in and out the country.
“This freeport is uniquely placed to lead the 海角视频 in renewable energy, clean growth, and advanced manufacturing.”
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Highlighting investments by rare earth specialist Pensana at Saltend, Siemens Gamesa at Hull and the Offshore Renewable Energy Catapult Centre of Excellence for Operations and Maintenance in Grimsby, she flagged the Industrial Decarbonisation Challenge for carbon capture and hydrogen technology funds also being sought.
“As a Hull University grad, I already knew of this region’s towering strengths. But, having revisited my old stomping ground earlier this year with my ministerial hat on, it became abundantly clear to me that the Humber is on the cusp of a new green, industrial revolution,” she added.
The freeport focuses on three zones, East Hull, South Humber and Goole. The first, including Port of Hull, Humber International Enterprise Park, Saltend Chemicals Park and Yorkshire Energy Park is described as the most advanced, with Port of Immingham and Able Marine Energy Park at neighbouring North Killingholme making up the second element. Turning to the next steps, Ms Davison said in the immediate term the government wants to help more businesses use the tax relief already on offer at Hull East and Able Marine Energy Park to attract investment and create jobs, adding that they “hope to bring similar incentives to the Goole site later this year once master-planning for the area finishes”.
“The full business case is in the final stages of government approval,” she said. “That’s thanks in no small part to the hard work and dedication of everyone involved in this project. We hope to see the designation of a customs site within the freeport later this year, and - providing we dot all the Is and cross all the Ts in the final approval stage - we’ll then be able to green-light up to £25 million in funding over the coming years. Our ambition is to make sure that the Humber Freeport and indeed the whole region, has everything it needs to grow and flourish.”
The Humber Westminster private lunch was hosted by Hull North MP Dame Diana Johnson DBE and Mr Vickers, co-ordinated by Marketing Humber and sponsored by ABP.
Simon Bird, ABP’s Humber director, and chairman of the Humber Freeport, told how the common theme for all the freeport sites was the focus and incentives given to attract investors into decarbonising the economy.
“The freeport status will help unlock the next industrial revolution as we seek to lead the world in green energy,” he said, describing it as a tremendous honour to lead. “The recent Humber 2030 vision, produced by the Humber Energy Board, showcases 18 major projects which combined make up £15 billion of private sector investment in the Humber,” Mr Bird said. “All are either producing green energy or capturing carbon. The one thing all 18 projects have in common, is that they are all customers of ABP’s Humber ports, which is why I am so passionate about showcasing the role the Humber is playing in creating and boosting the 海角视频 economy of the future.
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“I am delighted to say we are now have a clear view of the home stretch of the marathon race of the freeport bid, we are hoping for a final approval from the government any day now, possibly next week, and in the coming months we will hopefully see the Humber Freeport start to deliver the hundreds of millions of pounds of investment into the region and release the 7,000 new jobs we believe will be created. There are exciting times ahead.”
Cluster benefits as important as tax breaks - Pensana
Inward investor Pensana’s chairman Paul Atherley was in attendance as an emerging case study to freeport opportunity. The rare earth specialist is to refine oxides mined in Africa at a new plant being built at Saltend, part of the Hull East element. It is looking to tap into electricity from offshore wind landing close to the plant, while also gearing up to recycle elements of wind farms using hydrogen produced by Equinor there.
Materials it produced will then kickstart a 海角视频 supply of magnet metals - vital for electric vehicles and turbines.
Mr Atherley said: “It is a cluster effect, and they are two very good examples of a cluster effect of a freeport. We were attracted to a world class port, a world class chemical park and yes, the business tax benefits are real, but the real benefit is offshore wind, the circular economy with Equinor and many others.”
China is the market leader but the environmental credentials have been questioned. Pensana is aiming to be the first in the world to produce ultra low embedded carbon rare earth metals, that should be lapped up by markets conscious of sustainable supply chains.
“Right now the competition is not just China, the competitor is also the Inflation Reduction Act in the United States,” Mr Atherley said. We cannot expect government to come up with $360 billion to be able to compensate us, but what we can say is what advantages we have. We have two fantastic advantages, the freeport cluster of a chemical park and bad weather. It is like a WeWork going into a chemical park, linked to offshore wind, it gives us the ability to do things better than America and China. I’m very much looking forward to good news on the freeport shortly.”
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