Energy Bill [Lords]

Alexander Stafford Excerpts

2nd reading
Tuesday 9th May 2023 Commons Chamber

[Alexander Stafford (Rother Valley) (Con)]

As chair of the all-party parliamentary group on hydrogen, most of my comments will focus on the hydrogen part of the Bill.

The past winter has epitomised the uncertainty felt across the country about our energy future. However, the Bill will restore certainty and help to deliver energy security and net zero targets, because it will help to unleash our hydrogen potential. Part of the uncertainty for our constituents is a concern about everyday essentials, such as, “How do I clean my home?”, “Do I need a heat pump?” and, even, “What is a heat pump?” Green hydrogen blending uses the same pipe and boiler system already in our homes and is by far the simplest way of cutting our carbon emissions from heat, which currently run at nearly a quarter of our carbon dioxide output. I am convinced that green hydrogen can play a part in decarbonising heating, but I know, as we have heard today, that many across the House and the country are not so certain. That is why the trials that the Bill supports are so important. The point is to allow Government, businesses and, most of all, our constituents, to decide if it is a viable path to decarbonising heating. It is essential that the Bill pushes forward those aspects.

Businesses, too, need certainty that hydrogen will not fall by the wayside. The UK has been a world leader in hydrogen. The hydrogen strategy and last year’s update clearly envision us regaining that title. But policies such as the Inflation Reduction Act and the Net-Zero Industrial Act mean that the US and the EU have become more fertile ground for hydrogen innovation than the UK. Businesses need certainty to invest in hydrogen, knowing that there will be a thriving hydrogen economy for production, storage, transport and use. That is why I am delighted that the Bill will unlock billions in private investment through contracts and business models, not only securing our energy future but bringing jobs and wealth across the country. Although there are concerns about the cost of the schemes, I know that every pound spent on hydrogen today means two pounds or more off energy bills tomorrow. That is surely an easy calculation to support. The provisions in the Bill will boost the UK’s hydrogen economy, and I am glad the Government are, at last, being proactive in this space.

Although the Bill goes a long way, we must go further on hydrogen. It will be the glue that binds our green energy future together. It is a Polyfilla energy, helping to fill the cracks between other sources and plug the holes left by carbon-based energy. It will prove an invaluable tool for tomorrow’s energy mixture. The more we encourage it today, the better. For that reason, I urge the Government to push further and legislate to become the torchbearer for global hydrogen. For a start, although I am glad that community electricity producers will now have the certainty and support that they need to flourish, the provisions in the Bill exclude small-scale hydrogen production, which can be used as storage or directly as an energy source. Will the Minister look at widening those clauses to include all low-carbon energy suppliers?

We can do more to ready ourselves for hydrogen heating. We can require new boilers to be hydrogen-ready by 2026, which will bring down prices to normal levels, provide certainty to manufacturers and smooth the transition towards blended heating systems. What better way of preparing ourselves for clean heat. I call on the Minister to re-examine the case for hydrogen-ready boilers. That will be a shot in the arm for UK manufacturers. Furthermore, although the Government’s dedication to hydrogen is welcomed by all, or by most anyway, there must be enough green hydrogen. Current estimates forecast that we will need about 10 times the hydrogen that we currently produce to reach net zero by 2050. The Government have already kickstarted UK hydrogen by doubling our production target. Will they do that again? Will there be certainty for all the hydrogen that we need? We need to increase and support hydrogen production.

Finally, and most importantly, we must be certain that the hydrogen we use is not damaging our planet, despite its clean reputation. Many of the objections to hydrogen in heating come from uncertainty about the true emissions of producing it. Blue hydrogen in heating is often claimed to emit more carbon than natural gas. We need certainty that the hydrogen we use is not going to be worse than the carbon we are leaving behind. The Government’s current definition of low-carbon hydrogen, at 20 grams of CO₂ equivalent per megajoule of hydrogen, is a good start but we must look at lowering it in line with the overall emissions of the grid. Specifically, it must come down to closer to 5 grams to ensure truly environmentally friendly hydrogen. That is the only way to give investors and our constituents the certainty that low-carbon hydrogen is indeed low carbon. I appreciate that blue hydrogen and others are clearly transitional to get to green hydrogen.

It will be obvious to the House that I am certain that there is no green future without hydrogen, but thanks to the Bill and the certainty that it provides to our constituents, businesses and investors, I believe that the Government agree. I know work will be planned to incorporate some of the suggestions I put forward today, but the Bill goes a long way to creating the certainty in hydrogen that we need. However, we must go faster. We used to be the world leader in hydrogen production and manufacturing, whether from buses such as Wrightbus or diggers such as JCB. All across the sector, we need to go further and faster with hydrogen. It is not the silver bullet to all our net zero needs but it is the Polyfilla that will make sure that, when other areas fail, hydrogen will step in.