Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential effect of hydrogen storage on (a) price volatility and wholesale natural gas prices, (b) the liquidity of the gas market, (c) security of supply and dependency on gas imports, (d) regional economies and integration and (e) the cost of mothballing and/or decommissioning existing depleted gas fields.
The Energy White Paper sets out that natural gas has an important and on-going role to play in the future as we decarbonise our energy system. Even as work progresses with the move to a low carbon economy, energy security remains an absolute priority and Government will continue to engage with industry to ensure supply is balanced with demand.
BEIS is working with industry to explore the future role of hydrogen storage in meeting the net zero target. The UK Hydrogen Strategy provides Government’s thinking around the role of hydrogen storage, and its plans to assess whether further regulation or support mechanisms are needed.
Though it is still too early to establish the role hydrogen storage will play, and the impact the production of hydrogen and the potential need for hydrogen storage facilities might be leading to 2050, BEIS continues to work with stakeholders to determine the future of the gas system, the market and any consideration around costs in meeting the net zero target.