Hydrogen Heating

Lord Newby Excerpts

Monday 11th December 2023 Lords Chamber

[Lord Callanan (Con)]

I know my noble friend feels very passionately about this. As I have said, we allocated some contracts for difference in the last round for tidal. I am sure we will want to do so in the next round again, provided the bids are competitive—but it does contribute a relatively small part of our energy mix.

[Lord Newby (LD)]

My Lords, does the Minister agree that part of the answer to the question from the noble Lord, Lord Howell, about hydrogen as an appropriate source of heating is that producing hydrogen in itself uses a tremendous amount of energy? It is one of the least energy-efficient ways of producing an alternative source.

[Lord Callanan (Con)]

The noble Lord is right. Of course, there are two separate issues. Hydrogen will play an important role in the transition; there are lots of industrial processes, such as heavy transportation, for which there is no realistic alternative to hydrogen, and we will be announcing the results of the first hydrogen allocation round shortly—a lot of things are happening in the near future. Hydrogen will play an important role in decarbonisation and long-term energy storage because we principally “waste”—in inverted commas—quite a lot of electricity in curtailment payments because we cannot use it. So, in terms of large-scale storage of energy, it can play an important role, as well as in industrial processes. There will be some important uses for hydrogen. There is a separate question about whether it should play an important role in home heating, about which we will decide shortly.