Transport: Hydrogen

Lord Oates Excerpts

Monday 13th September 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I absolutely agree with my noble friend, and that is precisely what we are doing with these many different pots of money, which are either modal focused or net-zero focused as a whole in terms of developing ways forward for all types of use of hydrogen. Another example is the £14.6 million that we have funded jointly with industry on a project to develop a combustion engine to cater for medium and heavy-duty commercial vehicles. This project is led by Cummins, and it is really good that we have the private sector involved. It is forecast to save 17.1 million tonnes of carbon dioxide.

[Lord Oates (LD)]

My Lords, does the Minister recognise that there will not be sufficient hydrogen to fuel heavy transport vehicles, let alone private cars, unless we accelerate the production of hydrogen through attracting more private capital into the sector? Will the Government incentivise such investment by revising the renewable transport fuel obligation to cover all green hydrogen, not just that connected directly to a renewable generator?

[Baroness Vere of Norbiton (Con)]

Yes, the Government will. The Department for Transport consulted earlier this year on measures to make the supply of renewable hydrogen into transport more cost-effective within the RTFO. We will publish a response on this consultation. I have to say to the noble Lord that I do not think that is going to be enough. We will be focused on the generation of both blue and green hydrogen. As he will know from the hydrogen strategy, the Government will be consulting on hydrogen business models and the net-zero hydrogen fund so we can figure out how we are going to unlock the greatest amount of private investment using the £240 million the Government will invest.