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Written Question
Carbon Emissions and Hydrogen: Finance
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, when his Department plans to provide further detail on the (a) twin track production strategy for hydrogen and (b) Industrial Decarbonisation and Hydrogen Revenue Support scheme.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Government will shortly be publishing responses to the consultations on the Net Zero Hydrogen Fund, Low Carbon Hydrogen Standard, and Hydrogen Business Model. The latter provides the framework for spending under the Industrial Decarbonisation and Hydrogen Revenue Scheme. These publications will set out more detail on how the Government will support both electrolytic ‘green’ and carbon capture enabled ‘blue’ hydrogen production, as part of a twin track approach.

The Government expects that up to 500MW of electrolytic hydrogen production projects and 1GW of CCUS-enabled hydrogen will be operational or in construction by the mid-2020s.


Written Question
Hydrogen
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what his planned timetable is for the six-month update on the Hydrogen Strategy.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Government published its first ever UK Hydrogen Strategy in August 2021, putting the UK at the forefront of the race to develop low carbon hydrogen.

The Strategy committed to provide regular updates to the market as our policy develops, with the first of these updates expected shortly. This will include publishing responses to our consultations on the Hydrogen Business Model, Net Zero Hydrogen Fund and Low Carbon Hydrogen Standard.


Written Question
Carbon Capture and Storage and Hydrogen
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help ensure that the UK maximises the potential economic opportunities of low carbon hydrogen and carbon capture, usage and storage.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Government has committed to publishing a Sector Development Action Plan to set out how government and industry will support UK companies to seize supply chain opportunities, skills and jobs across the hydrogen economy. In addition, the Government’s aim to capture and store 20-30 MtCO2 per year by 2030 will offer significant opportunities for investment and UK exports.


Written Question
Hydrogen
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Hydrogen Strategy and Net Zero Strategy, what progress his Department has made on understanding the (a) costs and (b) benefits of introducing hydrogen into the power sector.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Government views hydrogen as an important component of the UK’s future power system. Government analysis[1] shows that having hydrogen available in the power sector could achieve lower emissions at a lower cost than scenarios without hydrogen. The extent of hydrogen’s impact is dependent on the quantity and cost of hydrogen available for generating electricity.

[1] https://www.gov.uk/government/publications/modelling-2050-electricity-system-analysis


Written Question
Hydrogen: Storage
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the levels of hydrogen storage capacity required to (a) facilitate the anticipated growth of and (b) help guard against price spikes in that market; and what steps he plans to take to help ensure that that capacity is delivered in a timely manner.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

In the UK Hydrogen Strategy, the Government set out that hydrogen storage can support the hydrogen economy in a range of ways that position it as a strategic asset as part of a fully decarbonised, net zero economy. In the strategy, the Government committed to undertake a review of systemic hydrogen storage requirements in the 2020s and beyond, including its potential role as a critical enabler for some end-use sectors.

The review is underway and will consider whether funding or other incentives are needed, whether regulation might be required to ensure that the necessary storage infrastructure is available when needed, and what form this might take.


Written Question
Carbon Capture and Storage
Tuesday 5th April 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the levels of offshore CO2 storage capacity required to meet projections for (a) hydrogen production and (b) industrial and power carbon capture projects for 2035 and beyond; and what steps he plans to take to help ensure that that capacity is delivered in a timely manner.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The UK has an estimated 78 billion tonnes of CO2 storage capacity on its Continental Shelf. This is more than adequate storage capacity to meet CO2 storage requirements for hydrogen production and industrial and power carbon capture projects.

In the Net Zero Strategy, the UK set out an ambition to capture 20-30 million tonnes per annum (Mtpa) of CO2 by 2030, including 6 million tonnes per year of industrial emissions, and at least 50 Mtpa by the mid-2030s.

The Department continues to work with key regulatory and industry partners to ensure the capacity needed to store CO2 is made available.


Written Question
Industry: Carbon Emissions
Tuesday 22nd March 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the wider infrastructure required to deliver industrial decarbonisation; and how those requirements will be including when assessing bids in Phase 2 of its CCUS Cluster Sequencing Process.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

Industrial emissions need to drop by 63-76% by 2035. Achieving this means going further and faster on fuel switching and carbon capture, utilisation and storage (CCUS). The Government is working with industry to understand what changes and developments of network and storage infrastructure would be required to enable the UK to reach these ambitions.

The assessment of Phase-2 CCUS cluster sequencing projects is ongoing, during which project submissions will be assessed against several criteria, including the credibility and deliverability of their plans to connect to the Transport & Storage Networks selected in Phase-1.


Written Question
Carbon Capture and Storage and Hydrogen
Tuesday 22nd March 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he will take to ensure that policy and regulation in the development of hydrogen and carbon capture, utilisation and storage in the UK supports the development of UK capability as part of delivering value for money for the public purse.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The UK Hydrogen Strategy makes clear that maximising UK capabilities across the value chain is a key aim of developing our hydrogen economy. The Strategy committed government to publishing a Sector Development Action Plan in 2022, which will set out what government and industry will do to the support the UK supply chain to develop capabilities in production, transportation, distribution and storage and various end uses.

The Government’s Carbon Capture, Usage & Storage (CCUS) supply chain roadmap sets out how government and industry can support UK capability in the CCUS supply chain as part of an investable, cost-effective and delivery focused sector. The industrial clusters will be the starting point for a new carbon capture industry, which could support up to 50,000 jobs in the UK by 2030, including a sizeable export potential.


Written Question
Hydrogen: Foreign Investment
Tuesday 22nd March 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to (a) attract foreign direct investment into and (b) strengthen UK supply chains for the UK’s emerging blue and green hydrogen sectors.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Government has set out a strong framework for investment through the UK Hydrogen Strategy and Hydrogen Business Model, and showcases overseas the opportunities for investment in the supply chain.

Our forthcoming Sector Development Action Plan will make clear what government and industry will do to the support the UK supply chain in the production of low carbon hydrogen, but also across the wider value chain.


Written Question
Industry: Carbon Emissions
Tuesday 22nd March 2022

Asked by: Graham Stuart (Conservative - Beverley and Holderness)

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential contribution of (a) the Hydrogen to Humber Saltend project and (b) other similar projects in making the UK a world leader in the (a) elimination of industrial emissions in the UK and the (b) export of such technologies.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

Following Phase 1 of the Cluster Sequencing process, the Hynet and East Coast Clusters (which includes the Hydrogen to Humber Saltend project) have been confirmed as Track 1 clusters. This puts these places among the potential early industrial ‘SuperPlaces’ which will be at the forefront of low carbon and renewable technological development. The investment in these places will develop resilient supply chains, support jobs, and position UK companies at the forefront of an exciting growing global market with potential export opportunities.