Hydrogen Economy

Lord Ravensdale Excerpts

Monday 19th July 2021 Lords Chamber

[Lord Callanan (Con)]

There are a number of demonstration projects around the world on CCS, but we need to demonstrate it at scale and, as the noble Baroness will be aware, we will shortly be announcing our first CCUS clusters in the UK.

[Lord Ravensdale (CB)]

My Lords, I declare my interests, as in the register. Many industry responses to the recent consultation on the renewable transport fuels obligation suggested that green fuels, such as hydrogen, produced using nuclear energy should be eligible for this scheme to help the UK meet its targets. Can the Minister confirm what further engagements the Government will hold with industry to make a decision on the role of nuclear energy in the RTFO, and when they will make a final decision?

[Lord Callanan (Con)]

We believe that nuclear will have a role in low-carbon hydrogen production in future. The details of the hydrogen business model will be set out in the forthcoming strategy. At this stage, our aim is to remain technology-neutral. As the noble Lord indicated, under the existing RTFO, the hydrogen must be produced from renewable energy to be eligible. Changing that would require primary legislation.