Green Hydrogen

Business, Energy and Industrial Strategy – in the House of Commons on 9th February 2021.

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Photo of Chris Grayling Chris Grayling Conservative, Epsom and Ewell

What assessment he has made of the capacity of the UK to produce green hydrogen.

Photo of Anne-Marie Trevelyan Anne-Marie Trevelyan Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

The UK has expertise and assets to support both green and blue hydrogen. Our twin-track approach to enable both routes, in line with our 2030 5 GW ambition, will drive cost-effective supply volumes in the 2020s, while scaling up green hydrogen.

Photo of Chris Grayling Chris Grayling Conservative, Epsom and Ewell

My right hon. Friend is right to talk about both forms of hydrogen. Ideally, of course, we would all be using entirely green hydrogen—as she knows, there are problems with the renewable transport fuel obligation, which I hope she will be able to sort out—but blue hydrogen is going to be part of what we need in the coming decades. What steps is she taking to ensure that we provide the right support for the carbon capture that must, by definition, go alongside the production of blue hydrogen so that it is genuinely a net zero fuel?

Photo of Anne-Marie Trevelyan Anne-Marie Trevelyan Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

We are committed to making the UK a global leader in developing carbon capture and hydrogen production, so we are supporting both through new commercial frameworks and financial support, via our £1 billion for a carbon capture and storage infrastructure fund and £240 million for our net zero hydrogen fund.

Photo of Alan Whitehead Alan Whitehead Shadow Minister (Department for Business, Energy and Industrial Strategy) (Energy and Climate Change), Shadow Minister (Business, Energy and Industrial Strategy)

I welcome the Prime Minister’s 10-point plan announcement of the proposal to develop 5 GW of low-carbon hydrogen production capacity by 2030 and, as the Minister has mentioned, the £240 million net zero hydrogen fund to support that. Is it her intention to deploy that fund to support the production of green hydrogen and not to use any part of it to support production capacity consisting of grey or blue hydrogen?

Photo of Anne-Marie Trevelyan Anne-Marie Trevelyan Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

I thank the hon. Gentleman for his support for the 10-point plan, which I think the whole House believes is the right way forward. The £240 million net zero hydrogen fund is, of course, only one element of this, and we are supporting innovation, heat trials, standards, business models and a revenue mechanism to stimulate that private sector investment which is so important. This is going to put the UK firmly at the front of the pack. We will be setting out much more detailed work later in the year when I publish the hydrogen strategy.