Here are the climate-related sections of speeches by MPs during the Commons debate Hydrogen Supply Chains.
00:00 Tom Collins (Labour)
This is of course a very important topic. We have faced an overly warm summer this year and we keep seeing the weather reminding us of the urgent need for change. The global energy system is also rapidly transitioning, and the UK needs to respond to that. With our ambitious mission for growth, looking to have the highest growth in the G7, it is vital that we are competitive and, indeed, that we lead in the energy space, as well as renew ourselves industrially. The UK has shown great leadership in hydrogen supply chain development and hydrogen technology development. We have been leaders, but we have also navigated and illustrated the technically complex, multi-sector, internationally charged difficulties in decarbonising our economy. It has been unclear which technologies will win, but although there is still some small uncertainty associated with how the mix of technologies will play out, the questions of how we will produce, transport and store energy at that macro scale are now finding firm answers, so we are at a turning point. The transition is no longer being led by technology, but by economics, and it is time for us to respond to that shift.
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09:33 Tom Collins (Labour)
How we get to the future energy system is similar to how we got to this point: economics is overtaking technology as the driver for change. It is not about choosing technologies; it is about choosing these key energy vectors and then facilitating markets to grow around them. If we look more closely at that challenge and at the current UK energy system, we have seen electricity decarbonising, but if we look at electricity use in comparison with other vectors in the UK, it plays a relatively modest role. If we look at our energy use over the course of a year, our daily electricity consumption is pretty flat, but if we overlay on to that the amount of gas we use as a country—remember, gas is providing a vital part of our electricity production, and indeed the responsive part—and we see waves with peaks in the winter and troughs in the summer. The peaks of those waves are three times higher than our day-to-day electricity use. Gas is doing the lion’s share of moving energy around the UK and supporting our electricity system, and oil, which is primarily used for transport and is our main vector for transport, sits at about the same level as electricity. That is the picture of how energy is split across the UK energy system.
What we can learn from that is that UK energy demand is peaky. It varies very rapidly, seasonally and throughout the day, especially for heat applications. As we move into a renewable world, we need to recognise that renewable production is also subject to these synchronous peaks and troughs. The UK is a small enough country that one weather system can influence the production of all our renewables. We are therefore subject to fluctuations both in the supply of renewable energy and in demand. We also know that global prices for energy will continue to fluctuate, and part of our Government’s strategy to make the UK rightly more energy independent is informed by our vulnerability to variations in international energy prices.
Whatever our vector mix, and however we cut up the pie of our future energy system, we absolutely will need storage to navigate these variations. The transition has rightly been described as a chicken-and-egg problem: how do we build a new energy system out of an existing one? We are led by economics, which means that we need a price for the new system. We need a price that breaks the cycle by providing producers with a way to sell their energy and by providing people decarbonising at the end-use point with the ability to buy the energy they need for decarbonisation and to make long-term investments. That price enabler is made stable by storage. The crux, therefore, of building this future energy system is to build transmission and storage of the key vectors that we want to use in the future. Therefore, it would be very valuable for the UK to develop a plan to commission and build out a strategic national clean energy reserve. That can be left to markets, but the Government need to drive it with an extremely strong and firm grip and with a clear vision. I urge the Minister to look at the ways that we can build on our current work in storage, while expanding it with a very clear and ambitious vision.
We can also start blending. Blending is sometimes misunderstood. There are currently investigations into blending hydrogen into our natural gas supply. That has a small benefit for decarbonisation, but it has a huge benefit for allowing us to build out production of hydrogen, because it gives producers a large and available sink for their hydrogen to be produced and sold and it allows them to build large-scale production with the certainty of a market. Blending is therefore a key enabler not of decarbonisation but of building production for a future energy system with hydrogen playing a major role.
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00:00 Tom Collins (Labour)
A longer-term road map for heavy transport and for heat would be very helpful. These are hard-to-abate sectors. I would like to see recognition that heat has proven one of the hardest areas of our economy to decarbonise. It is important that, while we have ambitious targets to electrify heat, we keep the door open to hydrogen providing that fallback, as gas does now for many electrified projects, to allow us to get there with confidence, rapidity and depth of decarbonisation.
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09:43 Wera Hobhouse (Liberal Democrat)
Sustainable, or green, hydrogen has the potential to drive job creation, economic growth and decarbonisation across sectors currently reliant on high-carbon fuels, and particularly the aviation sector. There is enormous potential for hydrogen in aviation. According to the International Energy Agency, 65 million tonnes per year of low-emission hydrogen must be produced globally by 2030 to meet our net zero targets. Domestically, Hydrogen UK has made it clear that we need 10 GW of hydrogen production capacity by 2030, alongside urgent investment in storage, to more than treble our capacity between 2030 and 2035. We need this infrastructure to reach a final investment decision.
Hydrogen is not just desirable, it is essential. But we can achieve these things only with better storage solutions, as the hon. Member for Worcester mentioned, lower operational costs and a secure, consistent supply. Producing green hydrogen is extremely energy-intensive and requires a large amount of renewable energy. On average, producing 1 kg of hydrogen consumes around 50 kWh of electricity. This high energy demand means that to produce more green hydrogen, we must drastically accelerate our renewable energy capacity.
That is why I am a little concerned that some renewable energy projects are being pushed out of the grid connections queue, because they are not seen as immediately necessary. That seems a short-sighted approach, and it could hinder our ability to scale green hydrogen production. What we should be doing is oversupplying renewables so that we have a surplus that allows us to not only produce enough green hydrogen but potentially become a net exporter of renewable energy across Europe.
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09:49 Wera Hobhouse (Liberal Democrat)
Hydrogen is not a silver bullet, but in aviation it is the fuel of the future. If we back it with the urgency it deserves, Britain can lead the world in hydrogen supply chains, deliver cleaner, cheaper energy, and ensure that our journey to net zero is also a journey towards prosperity and fairness.
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09:50 Luke Myer (Labour)
The Teesside region already produces much of the UK’s hydrogen, in an economy built on the legacy of ICI, and it continues today with BOC’s Teesside hydrogen carbon capture, usage and storage project. We have the pipelines, the port and the skills, and now the prospect of a new £4 billion net zero Teesside CCUS project linked to the Endurance saline aquifer beneath the North sea. With projects across our industrial cluster, we are well equipped to deliver perhaps a quarter of the Government’s 2030 target.
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09:55 Tom Collins (Labour)
Once again, I intervene only because I have painful personal experience of this situation. The Redcar trial was subject to a distinct, explicit and targeted campaign seeking to bring about its failure. It was extremely frustrating to experience, as the trial was testing both electrification of heat and conversion to 100% hydrogen—two key pathways for decarbonising heat that need to be validated. It was very frustrating to see that, and it was the result of a targeted campaign, but we have also seen that where the engineering is well explained and consumers are able to understand that this is just a different gas—in fact, a gas that already circulated in UK gas pipes prior to the conversion of the 1960s—these things can be done successfully. It is therefore important that we show positive ambition for hydrogen and help the public to feel secure about a problem where the engineering has been solved.
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09:56 Jim Shannon (DUP)
As always, it is a real pleasure to serve under your chairship in Westminster Hall, Mr Betts. I thank the hon. Member for Worcester (Tom Collins) for leading the debate and for the many conversations in recent years surrounding the need for alternative methods to fossil fuels. There is no doubt whatever that hydrogen is a much talked-about method, so it is great to be here today to discuss these matters. I believe that we must commit ourselves to the net zero targets, and we must meet them, or try to. To do so, we must have a strategy that encompasses all of the United Kingdom of Great Britain and Northern Ireland.
There have been discussions throughout Northern Ireland about hydrogen storage and the potential need for development. Northern Ireland’s main hydrogen storage development is the Islandmagee energy storage project, a unique salt cavern facility in County Antrim, in the constituency of my right hon. Friend the Member for East Antrim (Sammy Wilson). That is just an example of what we can use to move this development forward in the direction that it needs to go. That unit was initially planned for natural gas, but it has the potential to transition to hydrogen, supporting net zero goals.
The progression to net zero will also bring countless jobs, offering great opportunities in terms of apprenticeships. My query to the Minister is what has been done to encourage apprenticeships. There was a great defence development strategy statement yesterday, which was good to hear, and out of that was coming jobs—but were apprenticeships coming out of that as well? Could the Minister tell us about apprenticeships within the hydrogen sector?
As we look to the future of energy, hydrogen offers one of the most promising, yet complex, paths to decarbonisation. It presents us with a clear opportunity to create cleaner industries, decarbonise transport and build a more resilient energy system across Northern Ireland and the rest of the United Kingdom. I always think that the United Kingdom of Great Britain and Northern Ireland with all the regions together, can do it better, and I think the Minister will reinforce that in his summing up.
I look to the Minister to engage further with his counterparts in the devolved nations. I know he does so regularly, but it is always encouraging when the Minister says he has been in touch with Queen’s University Belfast, or with Wrightbus in Ballymena or wherever it might be, to ensure that we are doing things to progress and move forward as a collective—a collective that is better together in relation to our net zero supply chains.
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10:05 Jamie Stone (Liberal Democrat)
When the grid improvements were initially proposed, and yes we of course have to do that if we are serious about getting to net zero, I wrote to the then Prime Minister and the First Minister of Scotland to ask whether the proposals matched the production of green hydrogen that we are keen to do in the north of Scotland. I may or may not have got the formula for ammonia right but, if I remember my physics correctly, the longer the distance one has to send electricity down a wire or a cable, the more energy is lost. Is it I 2 R? It is something like that; I have probably got it wrong, and the Minister probably knows it better than I do, but the point is that the longer the cable, the more resistance, and energy is lost because heat is produced and radiates off it.
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Jamie Stone (Liberal Democrat)
We all want to see electric vehicles being used as much as possible, because that is part of getting to net zero. However, in a far-flung constituency such as mine, it is significant that a hydrogen-powered car has a greater range than an electricity-powered car. That backs up the argument the hon. and learned Member is making.
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10:14 Roz Savage (Liberal Democrat)
Hydrogen has long been talked about as the fuel of the future, and we are beginning to see how it can be the fuel of the present. If we are serious about net zero, energy security and building the industries of tomorrow, hydrogen must play a central role. Electrification is advancing rapidly but, as we know, about 80% of global energy demand is still for molecules, not electrons. Heavy industry, transport and heating remain stubbornly difficult to decarbonise. Hydrogen offers us a way forward. It is flexible, storable and able to integrate with existing infrastructure. Hydrogen can be partnered with offshore wind in tanks under the water, reducing the need for pylons. It could reduce the need for oversized solar farms on agricultural land, which reduce the land available for food production. But if the UK is to reap the benefits, we must act with urgency. The Hydrogen Innovation Initiative has calculated that securing just 10% of the global hydrogen technology market could deliver £46 billion per year to our economy by 2050 and support over 400,000 jobs. That is a huge opportunity, but it will not wait for us. Other countries are also moving fast and if we are too cautious, we risk being left behind.
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10:16 Claire Young (Liberal Democrat)
The wider south-west and Wales could offer abundant renewable energy—the Celtic sea has huge offshore wind potential—which can anchor green hydrogen production alongside connected industries that can use the hydrogen. For example, in aviation, progress is being made by companies such as Airbus and GKN Aerospace, which employ hundreds of my constituents, and ZeroAvia, as highlighted by my hon. Friends the Members for Bath (Wera Hobhouse) and for South Cotswolds (Dr Savage).
I recognise the importance of the green hydrogen industry for growth and the high-value jobs that it brings for local people, as expanded on so well by, among others, the hon. Members for Middlesbrough South and East Cleveland (Luke Myer) and for Strangford (Jim Shannon). It brings huge decarbonisation benefits for things such as buses, as highlighted by the hon. and learned Member for North Antrim (Jim Allister), and adjacent benefits such as the production of fertiliser, as highlighted by my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone).
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10:25 Claire Young (Liberal Democrat)
The Liberal Democrats want to see investment in research and development of new green energy sources, which will be vital for developing new green hydrogen technologies and breaking our dependence on fossil fuels. We support a transition to clean, home-grown renewable energy sources to reinstate the UK as a world leader in renewable energy, to improve energy security and to bring down consumer energy bills: the importance of long-term storage to achieve that was highlighted in the introduction. Disappointingly, the previous Conservative Government failed to act with anything close to the speed or ambition that this challenge demands, and Putin’s barbaric and illegal invasion of Ukraine has exposed the risks of relying on countries that may seek to exploit dependence on fossil fuels and use it to their advantage.
We want the Government to commit to winding down the oil and gas industry, but that must come hand in hand with a detailed plan for the redeployment of skills and local jobs. The economic impact assessment done by Hydrogen UK estimates that hydrogen can deliver significant economic benefits, including 30,000 jobs annually and £7 billion of gross value added by 2030. Trade unions in the industry are united in calling for substantial funding to build domestic renewable manufacturing but, disappointingly, the Chancellor did not commit to that in her most recent spending review. We urge the Government to invest in upskilling the existing workforce in adjacent sectors such as oil and gas, and to secure the investment that is needed to realise the job-creating potential of the green just transition.
Another key mechanism would be to link the UK emissions trading scheme with the EU’s, implementing a UK carbon border adjustment mechanism, making the business case stronger for low-carbon hydrogen in domestic supply chains, and adopt green procurement policies that support clean supply chain development. Finally, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) has repeatedly called for a sovereign green wealth fund to reinvest wind-generated revenues into green industries including hydrogen, promoting decarbonisation and manufacturing job creation across the UK.
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10:26 Andrew Bowie (Conservative)
All that is to say that the conversation around the significance, impact and resilience of supply chains is vital. The future of hydrogen in this country is central to our decarbonisation is central to our decarbonisation ambitions and sustainable future, as well as our industrial future, but it is also shrouded in uncertainty. The commitment and investment in using hydrogen as a solution in hard-to-abate industries, heavy manufacturing, long-distance transport and high-temperature processes began under the last Government.
When we were in government, we kick-started the world-leading hydrogen economy and launched a hydrogen strategy and a 10-point plan. We recognised the significance of hydrogen to decarbonising and the importance to the economy of the supply chain across the country. That supply chain—from utilities to manufacturers, transport, distribution and storage, and from monitoring and control to the fabricators of fuel cell components, end users and decommissioning—plays a vital role in securing a future for hydrogen in the UK and adding value to local economies. We identified attractive opportunities for the UK supply chain on electrolysis package manufacturing, electrical equipment, materials manufacturing and more, with the UK supply chain capable of attaining a market share valued between £4 billion and £5 billion.
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09:55 Michael Shanks (Labour)
Let me say a bit about our commitment to hydrogen before I respond to some specific points. We have been clear that hydrogen will play a fundamental role in the future of our energy system. Not only is it a crucial part of how we decarbonise heavy industry and transport, which are among our most energy-intensive and hardest-to-decarbonise sectors, but it is, as many Members have pointed out, part of our work to provide large-scale storage for our baseload of year-round clean power. As the Government have set out in everything we do, our mission to achieve clean power by 2030 and to maintain that relates to tackling the climate crisis, delivering energy security and reducing our dependence on unstable, volatile fossil fuel markets. How we take back control of our energy supply and storage will clearly be a critical part of that. It can also help us to reduce system costs as both electricity demand and renewable generation increase.
We are acting now to seize the economic and industrial benefits of the hydrogen sector, which is why we have been not only pushing forward on our policy framework but trying to make clear our ambition. There is much more to be said about that, but there has been industrial and investor interest in our hydrogen allocation round programme. The first HAR1 projects are now putting spades in the ground, with the first wave expected to access more than £2 billion over the next 15 years in revenue support from the hydrogen production business model, and over £90 million in capital from the net zero hydrogen fund. Over £400 million of private capital has been committed up front for 2024 to 2026, with more than 700 direct jobs created in construction and operation. Those are among the first commercial-scale hydrogen projects in the world to take a final investment decision, and we expect them to become operational between this year and April 2028. That will kick-start our green hydrogen production at scale.
Following the success of HAR1, we expect to announce successful projects in the second hydrogen allocation round in early 2026. The current shortlist includes innovative projects that could support ammonia production in Shetland, produce new clean energy at Grangemouth and decarbonise lime kilns—one of the first steps in cement production—in the Humber area. Moving forward, in June this year we published our industrial strategy, which set out plans for the further hydrogen allocation rounds, HAR3 and HAR4, for our first regional hydrogen network, and for the launch of the hydrogen-to-power business model in 2026.
My hon. Friend the Member for Worcester talked about the crucial role that storage will play in the renewable energy we are building. The question of how we store that for when we need it is crucial. We laid out our plans in the industrial strategy, backed up by the spending review, with £500 million for hydrogen infrastructure, partly to look at how we unlock hydrogen’s potential for clean power and provide home-grown energy and good jobs. We also have an ambition to deploy the first regional hydrogen transport and storage network, to become operational from 2031, which will aim to connect producers with vital end users such as power for the first time. This will unlock hydrogen’s role in clean power and help to realise the potential of large-scale hydrogen storage in maximising renewable energy use to support the transition to a decarbonised energy system. We are also currently designing a hydrogen storage business model, alongside a hydrogen transport business model, with the intention of providing investors with the long-term revenue certainty that many Members have raised in the debate.
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Michael Shanks (Labour)
To conclude, our vision is clear: a thriving low-carbon hydrogen economy—one that decarbonises those hard-to-electrify sectors, strengthens our energy security and fuels good jobs and growth across the country—is at the heart of the Government’s mission.
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Tom Collins (Labour)
I again thank my hon. Friend the Member for Rushcliffe (James Naish) for securing this debate and for his continued championing of the energy sector and all our work in it. He is a strong and powerful proponent, and I am grateful to him for the opportunity he has given me today. The debate has reflected the huge opportunity that hydrogen presents for the UK in growing our economy and facing the challenges of decarbonisation and new energy systems. It has reflected the versatility of hydrogen, the importance of building a system where it is abundant, the need for us to support industry not just in classic industrial heartlands but in towns across our country, and therefore the need for us to transition the gas networks to hydrogen in the future as well.
The consensus that we have heard in the room today, for which I am very grateful—I am grateful for all Members’ fantastically knowledgeable contributions—shows that we are at the turning point where this transition is being led by economics rather than debates about technology. Electricity, hydrogen and ammonia form a pyramid of complementary energy vectors whereby we can provide sector coupling, flexibility and a dynamic future energy system that allows rapid and deep decarbonisation. I have had the opportunity to meet representatives of industry and hold workshops with a very diverse cross-section of industry, and the urge for the storage piece to be built urgently and in a decisive way, sponsored clearly by the state, is very clear, with that backed up by transition.
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