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 plans to take to support the development of the UK’s hydrogen sector; and whether he has made an assessment of the steps the Government can take to support hydrogen-based steelmaking in the UK.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan was clear on our aim for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. The forthcoming Hydrogen Strategy will set out what is required to build a hydrogen economy fit for 2030, Carbon Budget 6 and beyond, whilst maximising economic benefits. We will also consult on priority policies, including hydrogen business models, a low carbon hydrogen standard, and the £240m Net Zero Hydrogen Fund.

The Industrial Decarbonisation Strategy, published on 17 March, commits to work with the newly constituted Steel Council to consider the implications of the recommendation of the Climate Change Committee to ‘set targets for ore-based steelmaking to reach near-zero emissions by 2035’. Hydrogen-based steelmaking is one of the technological approaches being examined as part of this process.

In order to support these efforts, the Government has announced a £250 million Clean Steel Fund to support the UK steel sector to transition to lower carbon iron and steel production, through investment in new technologies and processes. The decarbonisation of the steel sector and industry more widely will also be supported through the £1 billion CCUS Infrastructure Fund (CIF) and the £240m NetZero Hydrogen Fund.