Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment (a) his Department and (b) GB Energy has made of the capability and capacity of the UK steel industry to provide products for the UK’s renewable energy transition.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Government commissioned a report on the UK steel demand forecast to 2050, to inform the UK steel strategy. The strategy highlights the importance of steel in the clean energy transition.
Great British Energy (GBE) is committed to growing the UK’s manufacturing base and delivering enduring, sovereign capabilities in the clean energy technologies of the future. The Energy, Engineered in the UK (EEUK) programme is designed to unlock industrial opportunities from the energy transition and support GBE’s overall ambition to support at least 10,000 jobs through projects funded by 2030.
As part of delivering EEUK, GBE are working closely with Make UK and their membership to assess opportunities for UK steel within the energy transition and are actively engaging with the sector. This has included presenting on the EEUK programme to the UK steel committee in March.
More information about future funding opportunities will be available to the market in due course.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will consider bringing the Contracts for Difference Scheme under the remit of the Procurement Policy Note for Steel, and the national security clauses of the Procurement Act 2023.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
As set out in the recent UK Steel Strategy, the Clean Industry Bonus element of the Contracts for Difference (CfD) scheme rewards offshore wind developers if they use UK steel in their projects. There are currently no plans to bring the CfD scheme under the remit of the Procurement policy note for steel, and the National clauses of the Procurement Act 2023.
The department is committed to working closely across Government and industry stakeholders to take forward the actions needed to develop supply chains that are resilient, sustainable, innovative and secure.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to take further steps to reduce UK electricity prices compared with those in France and Germany.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is actively working to lower electricity prices by addressing the root causes of high costs. We are reversing years of underinvestment and implementing the largest upgrade to Great Britain’s electricity network in decades, reducing constraint costs and making greater use of affordable renewable energy. Through our Clean Power mission, we are accelerating renewable deployment to lessen the frequency with which gas determines electricity prices. Additionally, Reformed National Pricing will reshape investment decisions and improve system operations. Altogether, these initiatives aim to create a fair, affordable, secure and efficient electricity system, ultimately driving down bills for good.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential implications for his policies of the change in the UK's position in the Global Hydrogen Potential Index since 2021; and what steps he is taking to improve the UK’s international competitiveness.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The UK’s standing as a current global leader in hydrogen is reflected in our comprehensive investible policy framework and the number of hydrogen businesses that are based in the UK and developing world-leading technologies for export.
Government is delivering real projects to kickstart the UK hydrogen economy, with contract signings for successful projects from the first Hydrogen Allocation round, with £2.3bn of revenue funding confirmed and a further £500m confirmed for a hydrogen transport and storage network.
The 10 Year Clean Energy Industries Sector Plan (2025) announced new investment to turbocharge growth in the sector and our renewed Hydrogen Strategy, which we plan to publish soon, will set out how we intend to work together with industry to continue to transform ambition into action.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential role of industrial clusters in South Wales in the UK’s hydrogen economy.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Industrial clusters, such as in South Wales, can support hydrogen production and use by co-locating supply with demand, which helps reduce infrastructure costs, transport requirements, and system risks during market scaleup.
Across the South Wales industrial cluster region, two hydrogen production projects, West Wales Hydrogen in Milford Haven and HyBont in Bridgend, have been awarded funding in the first Hydrogen Allocation Round. The West Wales project recently announced its Final Investment Decision. Together, they will supply local industry, supporting decarbonisation, create skilled jobs and encourage regional economic growth across the South Wales industrial cluster.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate he has made of the potential economic impact of hydrogen investment in Wales, including on the level of (a) Gross Value Added and (b) job creation.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Our Hydrogen Allocation Rounds (HARs) are stimulating private investment in hydrogen projects across the UK, including in Wales. Two of the successful HAR1 projects are in Wales – the HyBont project in Bridgend and West Wales Hydrogen in Milford Haven. The latter recently announced its Final Investment Decision, which I was pleased to mark alongside the Secretary of State for Wales. This project alone represents an investment of over £50 million and is forecast to support over 60 jobs during construction and its operational phase. It will also strengthen domestic supply chains, by choosing Sheffield-based ITM Power to supply its electrolysers.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made with the the Chancellor of the Exchequer of the equity and effectiveness of the regional distribution of public funding for hydrogen infrastructure.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Government is not prescriptive regarding the location of support provision for hydrogen infrastructure, and will assess transport & storage project applications on individual merit against criteria reflecting strategic objectives (e.g. deliverability, decarbonisation potential, and value for money), before contract negotiations with highest-scoring projects. Hydrogen Transport & Storage Business Models support recipients will have had to demonstrate ability to deliver value for money infrastructure, and will have agreed scale & cost of deliverables with Government. As long as projects meet eligibility criteria for the regional hydrogen network competition, they will be able to apply regardless of their location within Great Britain.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the regional distribution of hydrogen infrastructure funding; and what steps he is taking to help ensure Wales receives a proportionate share of funding.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
In the 2025 Spending Review, Government allocated over £500m for development of the first regional hydrogen network. Government is not prescriptive regarding support provision location, and will assess transport & storage project applications on merit against strategic objectives criteria (e.g. deliverability, decarbonisation potential, and value for money), before contract negotiations with highest-scoring projects. Hydrogen Transport & Storage Business Models support recipients will have had to demonstrate ability to deliver VfM infrastructure, and agreed scope of deliverables with Government. Provided projects meet eligibility criteria, they can apply regardless of location within Great Britain. We welcome applications from Wales on launching.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with Ofgem on the decision not to fund the HyLine Cymru project; and whether he plans to revisit that decision.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
HyLine Cymru applied for development expenditure funding under Ofgem's RIIO2 reopener mechanism. Government subsequently discussed the strategic value of this project with Ofgem who decided not to fund Hyline Cymru due to its lack of large-scale geological storage, which will be needed for the development of a regional hydrogen network. Decisions regarding funding provided under RIIO2 sit with Ofgem and therefore Government does not intend to revisit this decision.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has had discussions with Ofgem on how its cost-benefit methodology accounts for regions with lower population density such as Wales.
Answered by Martin McCluskey - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Distribution charges - which in part make up the standing charge paid for by all consumers - are designed to be cost reflective and vary by region to reflect local factors in that area, such as geography, network topology and weather conditions.
The principle of cost reflectivity is an important means by which to drive down overall system costs as it helps to guide efficient investment decisions.
Government is working with Ofgem on examining how the costs of building and running the energy system are shared across consumers, aiming to find fairer, more efficient ways of charging, while supporting clean home-grown power and economic growth.