Future Hydrogen Economy

Christian Matheson Excerpts

Tuesday 14th June 2022 Westminster Hall

[Christian Matheson (City of Chester) (Lab)]

What a great pleasure it is to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Redcar (Jacob Young) on securing this debate and on an excellent opening, which really set the scene. It reminded me that the last time I took part in a debate on hydrogen in this Chamber—I think the hon. Member for Warrington South (Andy Carter) was in his place then as well—the Government had not yet decided where they were going to place their favour. The current Secretary of State, who was then the Minister for business, energy and clean growth, responded to that debate. I urged him not to make it into a beauty contest, but to spread the investment around. To be fair to the Government, they have done that, and I welcome the support that they have given.

I find the debate on hydrogen somewhat depressing. Many people in what we might term the green lobby, with whom I share a lot of aims and values, look on the hydrogen project in my area with disdain because it is the wrong type of hydrogen; it is blue hydrogen, not green. I wish people would get behind the programme for all the reasons that the hon. Member for Redcar has just set out, but also because of the basic fact that we are not where we want to be. We are not going to get there yet, but the current proposals—whether for the cluster in the north-east or in my area, with the Mersey Dee Alliance on the Cheshire coastline—will be a stepping stone on the way to those aims.

There is clearly a gap in energy at the moment. Offshore wind provides only 2% of our electricity. I have to say to the Government and Conservative Members that I would increase onshore wind as well to help with the production of hydrogen. However, for all the reasons the hon. Member for Redcar mentioned, I still think that hydrogen is the way forward, particularly in my area, where are there are lots of energy intensive users. It is well known that in the small area of coastline that stretches from Eastham through Ellesmere Port—just north of Chester, I hasten to add—and around through Runcorn and Widnes, 5% of the nation’s entire electricity is consumed in about 14 miles. That is why my area is such an important place for hydrogen investment.

The HyNet North West scheme, which I support, has been demand-driven by big industry in our region. Incidentally, one reason for that is that it differentiates companies for their customers. I have heard about one manufacturer, whose customers are looking to ensure that their supply chain is greened and becomes net zero, taking us forward in that aim. Anything that can reduce the industry’s carbon footprint—even a step towards that aim—should be welcomed.

I agree with the hon. Member for Redcar that we need to double the 2030 aspirations. Production of 10 GW is good, but at the moment we might not have more than 1 GW available on either coast. There is real demand, particularly from industrial users, to go faster, to increase pace and ambition and to improve storage and distribution capacity; the hon. Gentleman made that point perfectly. It is great making all this hydrogen, but if we have nowhere to put it and nothing to do with it, it is, frankly, a waste.

I have talked about industrial users, but I make a plea for commercial and passenger vehicle usage. I wrote an article not long ago with the hon. Member for North Antrim (Ian Paisley), in whose constituency Wrightbus is based, about potentially having a Government scrappage scheme for older passenger buses and passenger coaches to help to convert them to hydrogen more quickly.

I was very fortunate to go on a delegation to the United States a couple of weeks ago, through the British-American Parliamentary Group, to look at electric and autonomous vehicles. They are absolutely seeing hydrogen as a complementary technology that will play its part, next to fully electric vehicles, particularly, again, for long-distance distribution—lorries, essentially—and for buses. They are well ahead of us.

I will finish by making a plea, and a plug, to the Minister. My area, which is a cross-border area—Cheshire, Merseyside and north Wales—operates the Mersey Dee Alliance. We try to break down the barriers that exist politically and administratively, but do not exist for businesses, to get the most strategic approach. Energy has been one of our big areas of interest and investment.

The Mersey Dee Alliance, which runs that cross-border area, is seeking £150,000 to undertake a feasibility study into the establishment of a UK hydrogen demonstration skill centre, to be located in the University of Chester’s Thornton science park, in the constituency of my neighbour, the hon. Member for Ellesmere Port and Neston (Justin Madders). The proposal has been made in partnership with the University of Chester, HyNet, the Mersey Dee Alliance, our local authorities and the Welsh Government.

The proposed hydrogen demonstration centre has its origin in the Mersey Dee Alliance’s strategic partnership with HyNet, the proximity of the University of Chester’s Thornton science park to the plentiful hydrogen supply at the Essar refinery in Stanlow, and the pressing need to switch the fuel of our local economy’s industrial base from carbon-based sources to blue hydrogen, with carbon capture and storage, of course.

The intention of the proposed centre is to support the transition of the UK economy from using carbon-based fuels—

[Sir Edward Leigh (in the Chair)]

Chris, I need to get others in, so if you could just—

--- Later in debate ---

[Christian Matheson]

My apologies, Sir Edward—a very gentle nudge. Let me just put in a plug for that proposal, and ask the Minister that, when it comes across his desk—it is currently at official level—he looks on it kindly.

[Several hon. Members rose—]