Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when he plans to launch the allocation rounds for the Hydrogen Transport Business Model and Hydrogen Storage Business Model.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We are progressing the design of the business models and the first allocation round at pace. We will award the first contracts for the Hydrogen Transport Business Model and Hydrogen Storage Business Model through the Regional Hydrogen Network competition.
Further clarity on publication timings will be provided in due course.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 merits of the Humber supporting industrial decarbonisation through the development of hydrogen infrastructure.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Humber is the UK’s largest industrial cluster and is home to a number of hydrogen and industrial decarbonisation projects, which aim to supply low-carbon hydrogen to local industrial users, supporting decarbonisation, skilled job creation and regional economic growth across the Humber region. Proposals for hydrogen infrastructure in the Humber will be able to participate in the proposed Regional Hydrogen Network when launched.
Three projects in the Humber area were shortlisted in Hydrogen Allocation Round 2. If successful, these projects will produce low-carbon hydrogen to power gas turbines and help decarbonise oil refineries and lime kilns in the Humber area.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 impact of the Humber’s hydrogen production capacity on UK hydrogen targets.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Hydrogen has the potential to support decarbonisation and economic growth across the UK. The Government recognises the Humber as one of several regions that could supply, as well as benefit from, low‑carbon hydrogen production.
As part of the Hydrogen Allocation Round 2 (HAR2), three projects in the Humber area were shortlisted in April 2025, specifically Aldborough Hydrogen Pathfinder, Humber H2ub, and Singleton Birch Kilns. If successful, these projects will produce low-carbon hydrogen which will power gas turbines and help to decarbonise an oil refinery and lime kiln in the Humber area, as well as generate low carbon power.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 impact of a core hydrogen network on linking hydrogen production in the Humber to other industrial clusters.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
In the early hydrogen economy, we expect that most hydrogen demand will be located within our existing industrial clusters. Government is therefore prioritising the development of regional network infrastructure. Government continues to assess the economic and system benefits that could be presented by a core hydrogen network. However, determining the determining the needs case for inter-regional networks, as well as the location, scale and timing for any such networks requires further evidence.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what criteria he will use to decide the location of the UK’s first integrated hydrogen transport and storage network.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Officials are progressing the design of both the business models and the Regional Hydrogen Network competition at pace. Criteria are being developed to select the most strategically beneficial location for the first regional hydrogen network. As part of this, we expect to assess deliverability of the transport and storage projects involved, value for money, potential contribution to decarbonisation of key industrial and power sectors, and wider economic benefits such as contribution to green job creation and economic growth.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 merits of including hydrogenation and dehydrogenation projects within the Liquid Organic Hydrogen Carriers eligible for funding through the Net Zero Hydrogen Fund.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Net Zero Hydrogen Fund was designed to bring forward the first UK low carbon hydrogen production projects, and was not intended to support other parts of the hydrogen value chain such as hydrogen carriers. It made its final funding allocations in 2023.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 risks to national energy security resulting from reduced asset health funding proposed in Ofgem’s RIIO-GT3 Draft Determination.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.
Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.
The Department will continue engaging with Ofgem to ensure RIIO-3 delivers the investment needed to maintain energy security through this period. DESNZ launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, as a key forum to discuss risks and standards.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 the gas transmission network’s cyber security capabilities if it does not receive adequate funding under Ofgem’s RIIO-GT3 price control.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Funding for National Gas Transmission is set by Ofgem’s RIIO (Revenue = Incentives + Innovation + Outputs) framework for each five-year regulatory period. Both the current RIIO-2 framework (covering the 2021-2026 regulatory period) and the draft RIIO-3 framework (which will cover 2026-2030) include a Cyber Resilience UIOLI (‘Use it or lose it’) allowance, providing flexible funding capped at up to 20% of total expenditure for network companies to improve cyber resilience.
While arrangements for RIIO-3 are still being finalised, the framework is expected to include a re-opener enabling National Gas Transmission to request changes to cyber resilience funding during the 2026-2030 price control period.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 gas transmission network’s potential ability to meet rising electricity demand from AI and data centres if it does not receive adequate funding under Ofgem’s RIIO-GT3 price control.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.
Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.
Ofgem advised in their draft determinations for RIIO-3 that funding for projects supporting rising electricity demand, including those driven by AI and data centres, will be considered where appropriate evidence is submitted, and will be confirmed in their final determinations.
Asked by: Graham Stuart (Conservative - Beverley and Holderness)
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 risk to the UK’s security of energy supply if the gas transmission network does not receive adequate funding under Ofgem’s RIIO-GT3 price control.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Ofgem, as the independent regulator, are responsible for agreeing the funding and investment allowances for the gas transmission network and gas distribution network. Final decisions regarding the next price control period (RIIO3 – which covers April 2026 - April 2031) will be confirmed by Ofgem before the end of the year.
Through this process, Ofgem has a statutory responsibility to attract investment and maintain security of supply while incentivising efficiency and protecting consumers from excessive costs.
The Department will continue engaging with Ofgem to ensure RIIO-3 delivers the investment needed to maintain energy security through this period. DESNZ launched an Energy Security and Resilience Taskforce with CEOs of critical operators, with Ofgem in attendance, as a key forum to discuss risks and standards.