Future Hydrogen Economy

Jim Shannon Excerpts

Tuesday 14th June 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me, Sir Edward. It is a pleasure to serve under your chairmanship for the second time today; thank you very much for calling me.

[Sir Edward Leigh (in the Chair)]

It is the second time, Jim, but I always love your speeches.

[Jim Shannon]

It is always a pleasure to speak in Westminster Hall, no matter what. I congratulate the hon. Member for Redcar (Jacob Young) on setting the scene so very well and giving us all the opportunity to participate by doing that. The thrust of my contribution will be to insist—in a gentle, nice way—that Northern Ireland should be very much a part of the planned future hydrogen strategy. I am ever mindful of the Government’s legally binding targets under the Climate Change Act 2008, and the fact that the Climate Change Committee’s 2018 report, “Hydrogen in a low-carbon economy”, found hydrogen to be a credible option. The Government have committed themselves very much to the net zero target and to ensuring that hydrogen is an energy opportunity that we can all take advantage of.

A hydrogen economy has the potential to create or safeguard a massive 167,000 jobs—we cannot ignore that, and we look forward to some of those jobs coming to Northern Ireland—to provide £10 billion in gross value added to the UK economy, as mentioned by the hon. Member for Broxtowe (Darren Henry), and to reduce CO₂ emissions in the region by 29%. These are helpful targets, and they show that the Government are totally committed to this project. I look forward to the Minister’s response; he always speaks with knowledge in responding to our questions.

Recent work to drive the hydrogen agenda has seen progress move beyond the midlands, with plans to link key transport hubs: Immingham, the UK’s largest port by tonnage and the biggest deep-water port on the Humber; East Midlands airport, the UK’s busiest pure cargo airport; and the Tees valley, where plans are already in motion to develop a multi-modal hydrogen transport hub. Northern Ireland has also launched an ambitious new energy strategy, which includes plans for hydrogen as a key energy source for the future. I am keen to reiterate that and to push for that to happen.

The hydrogen strategy set out a number of things that should happen to expand domestic hydrogen production. They include setting aside £240 million for the net zero hydrogen fund, the significant development and scale-up of hydrogen network and storage infra-structure, with a £68 million commitment, and scaling up the use of low-carbon hydrogen, with heating buildings and transport trials and pilot projects planned—the hon. Member for Redcar (Jacob Young) referred to that. The strategy also talks about a market framework for hydrogen and a “supportive regulatory framework”. Northern Ireland wants to be part of that hydrogen plan, Minister. I know from the answers that he has given to me in the past, and also to my hon. Friend the Member for North Antrim (Ian Paisley), that he is committed to that, but it would be nice to have it in Hansard.

The hon. Member for Redcar referred to the village-scale trial that his constituency hopes to be part of. I do not care where it is, as long as it happens, although I would love to know the time scale for whenever the Minister thinks it would be completed and, then, how the plan would be developed for the rest of the United Kingdom.

My hon. Friend the Member for North Antrim has previously referred in questions to building hydrogen products that the public will ultimately use, such as buses, trains and heavy goods vehicles. The Minister replied to that in a very positive fashion—I think he referred to Glasgow City Council’s commitment—but I would like to see what is actually meant by

“further engagement with the Northern Ireland Executive”.—[Official Report, 22 February 2022; Vol. 709, c. 160.]

My hon. Friend also previously referred in a question to the “golden thread”, which I thought was quite a good saying—the golden thread that keeps together all this great United Kingdom of Great Britain and Northern Ireland, where all of us, in all the regions, can benefit. The Minister without Portfolio, the right hon. Member for Selby and Ainsty (Nigel Adams), referred to

“£100 million of new funding for the net zero innovation portfolio”.—[Official Report, 13 January 2022; Vol. 706, c. 630.]

I very much want Northern Ireland to be a part of that.

To conclude, “The Path to Net Zero Energy”, published in December, has set long-term sustainability targets for the region’s energy sector, including plans to fully decarbonise by 2050. Cost is also a key focus in the plan, in order to increase the affordability of low-carbon forms of energy. Other targets include the delivery of energy savings of 25% from buildings and industry by 2030, as well as doubling the size of Northern Ireland’s low-carbon and renewable energy economy.

[Sir Edward Leigh (in the Chair)]

Order. Can you wind up now, Jim?

[Jim Shannon]

Again, I look to the Minister to make a commitment to Northern Ireland.