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UK Hydrogen Economy
17 December 2020
Lead MP
Alexander Stafford
Responding Minister
Kwasi Kwarteng
Tags
TaxationEnergy
Word Count: 13446
Other Contributors: 8
At a Glance
Alexander Stafford raised concerns about uk hydrogen economy in Westminster Hall. A government minister responded.
Key Requests to Government:
The prompt publication of the forthcoming hydrogen strategy to set ambitious targets for the mass commercialisation of hydrogen technology; stimulate supply and demand in parallel, focusing initially on regional clusters; and ensure relevant Government Departments work collaboratively. Additionally, reform the RTFO to allow renewable energy from all sources to be eligible.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The UK is at risk of being overtaken by other countries that have more aggressive and developed approaches to hydrogen. For example, Germany has earmarked €9 billion for the expansion of hydrogen capacity, targeting 5 GW by 2030 and a further 5 GW by 2040, while Japan established its hydrogen strategy in 2017. The UK lacks a clear policy framework and Government investment is lower than in countries such as Germany.
Alan Brown
SNP
Kilmarnock and Loudoun
Mr Alan Brown intervened to note that £50 million was also paid out to turn off the nuclear plant, not just for wind farms. Agreed with contributions in the debate, emphasising the need for more financial commitment from the Government. Noted that the UK's hydrogen strategy is a year behind Germany and called for greater ambition. Raised concerns about decarbonisation of 27 million homes reliant on fossil fuels, highlighting the importance of hydrogen-ready boilers by 2025. Mentioned the H100 trial in Levenmouth and Fife and urged changes to Gas Safety Regulations to allow hydrogen blending.
Alan Whitehead
Lab
Southampton, Test
The Member welcomed the debate on hydrogen's role in decarbonisation, noting its potential for heating and vehicular transport. He expressed disappointment with the Government's cautious approach to hydrogen-ready boilers and diesel phase-out consultations, urging immediate action. Concerning production methods, he warned about prioritising grey over green hydrogen due to carbon neutrality issues.
Andy Carter
Lab
Warrington South
The hon. Member for Warrington South highlighted the potential of hydrogen in driving forward a new economy at pace, mentioning a test-drive experience with no carbon emissions. He emphasised the need for a network of refuelling stations and urged speedy decisions on the industrial decarbonisation challenge programme to capture over 25 million tonnes of CO2 by the mid-2030s. The Member also noted that Cheshire has the largest UK storage capacity for hydrogen in salt caverns, making it a prime candidate for low-carbon industrial clusters.
Chris Matheson
Lab
Aberavon
Represented the case for Cheshire's hydrogen economy, highlighting historical expertise in chemicals and energy. Emphasised the potential of HyNet project to capture CO2 emissions from 2025 and produce low-carbon hydrogen by mid-decade. Noted that increasing funding by £20-30 million would allow all five clusters bidding for funding to participate.
Claudia Webbe
SNP
Dartford
Ms Webbe highlighted the urgency of climate change, noting that the 20 warmest years on record have occurred in the past 22 years. She argued for immediate Government intervention to phase out fossil fuels and transition to renewables, emphasizing the role of hydrogen in job creation and economic growth. She mentioned a report suggesting the UK's green hydrogen industry could generate £320 billion and sustain 120,000 jobs by 2050. She challenged the Minister to focus investment on making cleaner forms of hydrogen cheaper and more accessible, stressing the importance of introducing zero-carbon homes standards.
John Spellar
Lab
The Wrekin
The hon. Member rightly indicates that we should encourage the purchase of British vehicles, and John Spellar suggests that the Department for Transport should ensure funds provided for more environmentally-friendly vehicles are used to build these vehicles in the UK rather than abroad. He also asks whether there is a commitment from the Minister that this must be done. Asked why Whitehall continues to favour southern England over other regions when placing new capacity or expertise despite available regional expertise. Mr Spellar argued for the exploration of hydrogen production and utilisation at pace, criticising Whitehall's slow processes. He highlighted the need to learn from compressed and paralleled government processes during Brexit and COVID-19. Mr Spellar pointed out that the UK has manufacturing capabilities in Ballymena, Falkirk, and Leeds for producing buses and urged a market to help them climb the learning curve. He also mentioned town gas as an alternative for domestic heating and called for a reduction of institutional barriers like paying wind farm operators not to run their farms. Interventions from Mr John Spellar were brief and did not provide specific contributions on the topic of the debate.
Lisa Cameron
SNP
East Kilbride, Strathaven and Lesmahagow
Ms Cameron urged the Government to increase public understanding of hydrogen as a vital asset in combating climate change. She welcomed the UK's White Paper aiming for 5 GW low-carbon hydrogen production capacity by 2030 but stressed the need for swift publication of a detailed report on the UK's hydrogen strategy. She highlighted several Scottish projects and initiatives, such as the Green Hydrogen for Scotland partnership and the Aberdeen hydrogen bus network. Ms Cameron also proposed East Kilbride as a potential pilot site for hydrogen heating trials due to its housing stock challenges.
Peter Aldous
Con
Waveney
Emphasised the potential for hydrogen to transform local economies in Suffolk and Norfolk by decarbonising energy, transport, and heating systems. Highlighted opportunities such as creating a hydrogen production hub around Bacton gas terminal, adapting existing infrastructure like Sizewell C nuclear power station for green hydrogen production, and using hydrogen in agriculture.
Government Response
Kwasi Kwarteng
Government Response
Discussed the Government's investment strategy in hydrogen, focusing on both blue and green hydrogen production to differentiate from EU strategies. Emphasised that private capital will play a major role in deployment success, citing £94 billion invested in offshore wind since 2010. Mentioned upcoming hydrogen trials and plans for a hydrogen town. Highlighted the importance of public engagement and knowledge about hydrogen issues. Stressed that there is huge opportunity for every part of the country to benefit from the hydrogen revolution.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.