Hydrogen Supply Chains

Jim Shannon Excerpts

Tuesday 9th September 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

As always, it is a real pleasure to serve under your chairship in Westminster Hall, Mr Betts. I thank the hon. Member for Worcester (Tom Collins) for leading the debate and for the many conversations in recent years surrounding the need for alternative methods to fossil fuels. There is no doubt whatever that hydrogen is a much talked-about method, so it is great to be here today to discuss these matters. I believe that we must commit ourselves to the net zero targets, and we must meet them, or try to. To do so, we must have a strategy that encompasses all of the United Kingdom of Great Britain and Northern Ireland.

I am pleased to see the Minister, who has a passion for this issue, in his place. Maybe the fact that he is still here today tells us just how good a job he is doing. He is a safe pair of hands and a friend to us all, for he has a deep interest in this matter. I am also pleased to see the shadow Minister, who brings a spark to this debate in every way, as he does when he speaks in the Chamber.

Northern Ireland wants to play a role. We have strong potential for green hydrogen production, due to our significant offshore and onshore wind resources, especially surrounding the Antrim coast in the Irish sea. There are also interests in blue hydrogen, but for Northern Ireland specifically, green hydrogen is the focus for sustainability. Queen’s University has been to the fore in trying to promote the issue; I spoke to the hon. Member for Worcester beforehand and I know that he knows that, but maybe the Minister does not, although he is a regular visitor to Northern Ireland, and why not? What better place to go for work or indeed for a wee trip? It is important to have connections between universities and business, and the partnerships that come from that. Perhaps Government could focus on that as well. I know that the Minister does that regularly.

There have been discussions throughout Northern Ireland about hydrogen storage and the potential need for development. Northern Ireland’s main hydrogen storage development is the Islandmagee energy storage project, a unique salt cavern facility in County Antrim, in the constituency of my right hon. Friend the Member for East Antrim (Sammy Wilson). That is just an example of what we can use to move this development forward in the direction that it needs to go. That unit was initially planned for natural gas, but it has the potential to transition to hydrogen, supporting net zero goals.

We have heard of many developments in relation to hydrogen and transport over the last couple of years—my hon. Friend the Member for East Londonderry (Mr Campbell) referred to that in his intervention, and the hon. and learned Member for North Antrim (Jim Allister) will do likewise in a few moments. The great thing about Wrightbus is that its net of employment applies not only to North Antrim; many people across all constituencies work for it and have helped to develop the project there through their work on the shop floor. Some of the UK’s companies have taken part in a project to inject millions into the economy and create thousands of jobs, and Wrightbus in Northern Ireland is one of them. It is a leading producer of hydrogen buses, which provide safe, reliable and cost-effective transport.

My hon. Friend the Member for East Londonderry was right to make the point about the travel chaos in London yesterday. What should have been a 15 or 20-minute journey took an hour and 20 minutes; the lady who works in our office had to leave home two hours earlier to try to get the bus connections—or even to get a bus. These are things that we should be looking at, not just because of this week but because of their ability to reduce the impact on the atmosphere and environment.

The progression to net zero will also bring countless jobs, offering great opportunities in terms of apprenticeships. My query to the Minister is what has been done to encourage apprenticeships. There was a great defence development strategy statement yesterday, which was good to hear, and out of that was coming jobs—but were apprenticeships coming out of that as well? Could the Minister tell us about apprenticeships within the hydrogen sector?

There are also numerous hindrances preventing hydrogen from emerging. There is the opportunity to establish strong supply chains, but there are some challenges, for example the high cost of producing and using low-emission hydrogen compared with fossil fuel alternatives. There is also some uncertainty surrounding the future applicability of hydrogen in different sectors. Globally, we need to be aware that there is so much competition. It is good to have this hydrogen debate, and to have a hydrogen strategy, but we also need to be competitive. We must take advantage of the opportunities that we can while we have the capability to do so. I ask the Minister, how we can keep those costs down and make it competitive for the future.

As we look to the future of energy, hydrogen offers one of the most promising, yet complex, paths to decarbonisation. It presents us with a clear opportunity to create cleaner industries, decarbonise transport and build a more resilient energy system across Northern Ireland and the rest of the United Kingdom. I always think that the United Kingdom of Great Britain and Northern Ireland with all the regions together, can do it better, and I think the Minister will reinforce that in his summing up.

I look to the Minister to engage further with his counterparts in the devolved nations. I know he does so regularly, but it is always encouraging when the Minister says he has been in touch with Queen’s University Belfast, or with Wrightbus in Ballymena or wherever it might be, to ensure that we are doing things to progress and move forward as a collective—a collective that is better together in relation to our net zero supply chains.

--- Later in debate ---

[Michael Shanks]

My very next point was on the future of the network. It wasn’t, actually, but I will come to it now, because the hon. Gentleman made a very good point, which I meant to come back to. He is right, of course, that we need to invest in the grid—even if we were not embarking on this clean power mission, the grid is very much in need of upgrading—but we want to take the strategic planning of that much more seriously than it has been taken in the past.

We know that we need to build significant amounts of grid—the hon. Gentleman recognised the importance of that—but we also want to plan the future of the energy system strategically so that the grid follows a logical way to build out the energy system. His point about trying to make use of the abundance of clean energy to transfer it into hydrogen as an off-taker was well made. It will feed into the work on the strategic spatial energy plan. It is about how we best use all the energy system to our advantage. It is also about how we can reduce things like constraint payments and make use of it as efficiently as possible. That is an important point that we will take forward.

To conclude, our vision is clear: a thriving low-carbon hydrogen economy—one that decarbonises those hard-to-electrify sectors, strengthens our energy security and fuels good jobs and growth across the country—is at the heart of the Government’s mission.

[Jim Shannon]

I asked a question about the opportunity for apprentices. I know that the Government are committed to that; I have never had any doubt about that, but I want us to show where the opportunities may be. I know that the Minister is also committed to ensuring that all parts of the United Kingdom of Great Britain and Northern Ireland can take advantage.

[Michael Shanks]

A key part of my conclusion was the useful challenge that there always is from the hon. Member for Strangford (Jim Shannon) about ensuring that we represent all parts of the United Kingdom. He was right to point out earlier that it is a beautiful part of the country to visit. I confess I have still never been to Strangford, but there is still time.

The hon. Member is right on two other fronts. First, the skills strategy is all about unlocking the next generation of workers. We need to inspire people in school right now to see that we want them to be at the heart of the energy system of the future, and apprenticeships are crucial for doing that. We will create tens of thousands of jobs in the sector, but as part of that there has to be investment in apprenticeships. On his wider point, he knows that I enjoy the engagement with Ministers in devolved Governments across the country. We work closely with the Northern Ireland Executive. As I always say, the energy system is transferred in Northern Ireland, but there is a huge number of areas where we can learn from each other and work together to ensure that the people in Northern Ireland and Great Britain benefit from what we are trying to achieve, and we will continue to do that.

To conclude my conclusion, unless anyone else wants to intervene, we are firm in our commitment to working with industry. There is a huge opportunity here. This is an exciting moment for us to recognise—as we are doing with small modular reactors and with floating offshore wind—that we have the potential to be at the forefront of the next great thing in our energy system. It requires the strategy that we are putting in place and the long-term confidence for investment, and we will continue to work hand in hand with industry, investors, innovators, workers—