House of Commons · Westminster Hall
14 June 2022 · 8 other contributors · 8,984 words
Opened by Jacob Young Con Redcar
Responding minister: Greg Hands
Summarised by AI from the official record, so it can contain mistakes.
Jacob Young raised concerns about future hydrogen economy in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Government should make changes to the gas safety management regulations to allow hydrogen blending and mandate the roll-out of hydrogen-ready boilers as early as possible, without additional cost to taxpayers. The Minister should also consider greenlighting both Redcar and Ellesmere Port's proposals for hydrogen village trials.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Hydrogen is the most abundant element on Earth and has been used historically for heating homes, transportation, and industrial processes. The global challenges related to climate change require realising the potential of hydrogen as an innovative solution to reduce carbon emissions. An estimated 6% saving in heat alone could be achieved by blending 20% hydrogen within the gas network.
Hydrogen will play a central part in future low-carbon energy structures, and the focus should be on ensuring its proper distribution, development and production. Alan Whitehead emphasised the impracticality of battery-powered HGVs for long-distance logistics and suggested hydrogen as the viable solution, while highlighting the importance of integrating carbon capture technologies with blue hydrogen in industrial clusters.
Andy Carter emphasised the importance of HyNet for levelling up and decarbonising in Warrington. He highlighted that careful consideration is needed regarding allocations to ensure industrial targets are met, stressing the need for a significant increase in support contracts under the IDHRS scheme to meet demand from industry. Carter also called on the Government to assess the impact of current plans on HyNet-reliant companies, urging them not to miss the 10 GW target by delaying business models.
Matheson welcomed the government's support for hydrogen projects but expressed concern about the focus on blue hydrogen rather than green. He stressed that current proposals should be seen as a stepping stone towards greener goals, highlighting the importance of industrial users in his area who consume 5% of national electricity and are eager to reduce their carbon footprint.
The midlands has significant potential for hydrogen production, with opportunities to create jobs and contribute to the economy. Emphasis on GeoPura's clean energy process and the readiness of industrial heartlands like the Midlands in leading the hydrogen economy.
The hon. Member insists that Northern Ireland should be included in the planned future hydrogen strategy, highlighting its potential to create or safeguard 167,000 jobs and contribute £10 billion to the UK economy. He calls for a commitment from the Government to include Northern Ireland in the development of a hydrogen transport hub and urges further engagement with the Northern Ireland Executive.
There is progress in hydrogen production targets, but the Government needs to demonstrate their commitment to a hydrogen revolution. Concerns about competition between regions for investment and lack of ambition in green hydrogen development were raised.
Highlighted the potential of East Anglia to become a major producer, user, and exporter of hydrogen. He mentioned existing projects such as Freeport East in Felixstowe and Harwich, the Lowestoft PowerPark project, and Bacton energy hub, all aiming to use hydrogen for various applications including municipal buses and refuse fleet operations.
Mr. Flynn highlighted the significant hydrogen activity in Aberdeen, including multiple hydrogen buses, refuelling stations, road sweepers, and bin lorries. He mentioned that SGN is exploring direct blending of hydrogen into the grid from St Fergus to Aberdeen. He also discussed Scotland's targets for hydrogen production by 2030 (5 GW) and 2045 (25 GW). Mr. Flynn raised concerns about the lack of progress on the Acorn project, which is crucial for blue hydrogen production. He emphasised the importance of green hydrogen due to Scotland's growing capacity for offshore wind energy.
Government Response
Greg HandsIt is a pleasure to serve under the chairmanship, and I congratulate my hon. Friend on securing this debate. The Government recognise the importance of focusing on cheaper, cleaner power in Britain for long-term energy security and achieving net zero by 2050. Hydrogen has significant potential in decarbonising vital UK industry sectors and providing flexible energy across power, transport, and potentially heat. In April's British energy security strategy, we committed to doubling our ambition to up to 10 GW of low-carbon hydrogen production capacity by 2030, with at least half coming from green hydrogen. The Energy Security Bill will facilitate the delivery of a sustainable homegrown energy system that is more secure, clean and affordable, including measures for the hydrogen business model. The sector could support up to 12,000 jobs by 2030 and unlock over £9 billion in private investment, with potential worth up to £13 billion and supporting up to 100,000 jobs by 2050. We are on track to make a policy decision on hydrogen blending in 2023, aiming for up to 20% hydrogen into GB gas networks. The BEIS Hy4Heat programme has invested £25 million and we expect the final location for the hydrogen village trial to be selected by 2023 with operational status by 2025. We will continue studying projects like Project Union, and discussions are ongoing with Centrica regarding extending gas storage at Rough. The Government is in regular contact with major cluster projects, including HyNet, about realising our 10 GW ambition through the CCUS cluster sequencing process. We aim to launch the net zero hydrogen fund this summer, aiming for annual allocation rounds by 2025. By July, we will announce blue hydrogen projects negotiated within the CCUS sequencing process. We have published an investor road map and a UK low-carbon hydrogen standard, committed to designing new business models for hydrogen transport storage infrastructure by 2025, and launched a hydrogen sector development action plan supporting the UK supply chain. I hope my hon. Friend agrees that we are committed to building a world-leading UK hydrogen economy.