Lord Callanan Portrait Lord Callanan (Con)
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There was a lot in that question. I agree that there are great potential uses of hydrogen in long-term energy storage, as the noble Viscount just mentioned, and in the decarbonisation of some aspects of rail transport and heavy goods vehicles—particularly for non-road mobile machinery, where there are no real electrification options, and we have a number of successful manufacturers in this country. The original premise of the noble Lord’s question is what the best method of home heating is. All the evidence and reports show that, even if it were technically possible to pipe hydrogen into domestic homes, electrification is a much more efficient option.

Baroness Northover Portrait Baroness Northover (LD)
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My Lords, the Minister is being very clear, perhaps clearer than his department has been. However, the fact that there is an assessment in 2026 still rather muddles things. His message—which is surely right—that a national hydrogen network is simply not the answer instead of gas boilers and that we need to encourage the take-up of heat pumps, on which we are massively behind most countries in Europe, needs to be clearly put over. At the same time, as the noble Viscount, the Royal Society and others have said, the Government should also be taking action on long-duration energy storage, but they seem not to be.

Lord Callanan Portrait Lord Callanan (Con)
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I am sorry to disagree with the noble Baroness, but we are taking action. We let the first 11 hydrogen electrolytic allocation contracts in what is called the HAR1 round last year. The HAR2 round for further electrolytic allocation is happening this year. We have produced business models for the transmission and storage of hydrogen. I disagree with her that there is no place for a hydrogen distribution network in the UK. There absolutely is a case for that —not for home heating but for industrial uses and some of the uses that the noble Lord mentioned. I disagree with her on the fundamentals of this. We are putting these things in place and we are one of the leading nations in Europe on the production and distribution of hydrogen.