Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether investment to support the manufacture of wind turbine jackets will be included in the Green Industries Growth Accelerator.
Answered by Graham Stuart
The Government has committed £1.1 billion to the Green Industries Growth Accelerator to support the expansion of domestic green manufacturing capacity and strengthen clean energy supply chains. At Spring Budget, we announced provisional allocations of up to £390 million for offshore wind and networks, up to £390 million for carbon capture, utilisation and storage and hydrogen and up to £300m to support domestic production of high-assay low-enriched uranium (HALEU) for nuclear fuel.
The Government is conducting engagement with industry on the design of the Accelerator and more detail on eligibility and how to apply for funding will be shared in due course.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when she plans to respond to Questions 17752 and 17753 on Hydrogen: Heating, tabled on 8 March 2024 by the Hon. Member for Glenrothes.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
I replied to the Hon Member on Friday 15 March.
Asked by: Neale Hanvey (Alba Party - Kirkcaldy and Cowdenbeath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how much her Department has spent on developing (a) HyNet North West, (b) East Coast Cluster, (c) Acorn and (d) Viking CCS.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
£210 million (matched by £261 million from industry) has been allocated through the UKRI Industrial Decarbonisation Challenge (IDC) since 2019 to drive the decarbonisation of the UK’s six major industrial clusters, of which £150 million has been allocated to projects within HyNet, East Coast Cluster, Acorn and Viking CCS clusters. The breakdown of funding allocated (all funding will be allocated by the end of March 2024) and funding provided to date through the IDC to projects within the clusters mentioned are as follows:
The clusters have also received funding through other sources other than the IDC. Since 2019, a) the HyNet cluster was awarded £8.5m, b) East Coast Cluster was awarded £1.3m c) the Scottish cluster was awarded £9.3m and d) the Viking CCS was awarded £7.9m of innovation funding under the BEIS CCUS Innovation, Advancing CCS Technologies (ACT) and Hydrogen Supply programmes.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, when she plans to make an announcement on the funding applications from the four Gas Distribution Networks for the Hydrogen Heating Town pilot.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government received applications from each of the four Gas Distribution Networks for funding to develop outline plans for how a roll out of hydrogen heating might start in each of their network areas, starting with a potential hydrogen town
The Government decided in December 2023 not to proceed with a hydrogen village trial in Redcar as the main source of hydrogen would not be available. The Government is assessing the implications of that decision for our policy on planning for a hydrogen town pilot and will provide an update on this work in due course.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent progress her Department has made on the roll out of the Hydrogen Heating Town pilot.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government received applications from each of the four Gas Distribution Networks for funding to develop outline plans for how a roll out of hydrogen heating might start in each of their network areas, starting with a potential hydrogen town
The Government decided in December 2023 not to proceed with a hydrogen village trial in Redcar as the main source of hydrogen would not be available. The Government is assessing the implications of that decision for our policy on planning for a hydrogen town pilot and will provide an update on this work in due course.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate she has made of the volume of green hydrogen that will be produced in the UK over the next ten years, by (a) nation and (b) region.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
As set out in December 2023’s Hydrogen Production Delivery Roadmap, the Government’s ambition for up to 10GW of low carbon hydrogen production by 2030 includes up to 6GW of electrolytic ‘green’ production capacity. The UK electrolytic hydrogen production pipeline has a variety of projects located all over the UK. The expected volume and supply of hydrogen (in Terra Watt hours) over the next ten years will depend on factors including future hydrogen demand, operating patterns of electrolytic hydrogen producers, and the specific projects that are successful in securing Government support for production under the Hydrogen Allocation Round process.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what revenue will be available to (a) the Scottish Government and (b) Scottish local authorities from the production of green hydrogen.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has a UK-wide mechanism for allocating revenue support to new low carbon hydrogen projects, including for electrolytic ‘green’ hydrogen projects. The first Hydrogen Allocation Round (HAR) for the Hydrogen Production Business Model resulted in 125MW of production capacity across 11 projects in England, Scotland and Wales, including two in Scotland.
HAR 2 is now open to applications, through which Government hopes to provide support for up to 875MW of low carbon hydrogen production. This round closes on 19 April 2024. Government has set out the process for future allocation rounds through its Hydrogen Production Delivery Roadmap.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether funding will be made available through the Green Industries Growth Accelerator for the manufacture of wind turbine jackets.
Answered by Andrew Bowie - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Government has committed £1.1 billion to the Green Industries Growth Accelerator to support the expansion of domestic green manufacturing capacity and strengthen clean energy supply chains. At Spring Budget, government announced provisional allocations of up to £390 million for offshore wind and networks, up to £390 million for carbon capture, utilisation and storage and hydrogen and up to £300m to support domestic production of high-assay low-enriched uranium (HALEU) for nuclear fuel.
Government is conducting engagement with industry on the design of the Accelerator and more detail on eligibility and how to apply for funding will be shared in due course.
Asked by: Stephen Crabb (Conservative - Preseli Pembrokeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to undertake a review of the criteria used to determine which industries are included in its carbon border adjustment mechanism proposals.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The government will implement a carbon border adjustment mechanism (CBAM) from 1 January 2027 to ensure that UK decarbonisation efforts lead to a true reduction in global emissions. The CBAM will apply a carbon price to relevant imported goods at risk of carbon leakage from the following sectors: aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron & steel.
In making the decision around the initial sectoral scope of the UK CBAM, the government looked primarily at three factors: inclusion in the UK ETS as the purpose of the CBAM is to ensure a comparable treatment of imported goods and domestic products from a carbon pricing perspective, carbon leakage risk, and feasibility and effectiveness.
The scope of the UK CBAM will be kept under review. Further details on the design and delivery of a UK CBAM, including the precise list of products in scope within the announced sectors, will be the subject of consultation in 2024.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to make investment in energy infrastructure more attractive for pension funds.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The government is attracting tens of billions of private investment into energy infrastructure from a wide variety of sources. Autumn Statement 2023 announced planning and grid reforms which could bring forward £90 billion of investment in energy infrastructure over 10 years, and since September 2023 alone companies have announced plans for £30 billion of new energy investment.
Autumn Statement added to the significant progress government has already made in creating the right enabling environment for infrastructure in decarbonization, as set out in Powering Up Britain. This includes:
- Innovative financing mechanisms and business models to provide revenue support and long-term certainty for investors in green industries, including Contracts for Difference (CfDs) for renewable energy generation, Regulated Asset Base (RAB) for nuclear, and models for CCUS and hydrogen.
- A strong public finance offer, including the £22bn in financial capacity in the UK Infrastructure Bank (UKIB) which enables it to partner with the private sector and government to increase net zero infrastructure investment.
Spring Budget 2024 delivers and builds on announcements from Autumn Statement, creating the enabling environment for net zero investment through energy system reforms. This includes:
- Confirmation of the parameters of the 6th Contracts for Difference (CfD) round for offshore wind, with the largest ever budget set at £1 billion.
- Seizing the growth opportunities of the net zero transition, with an additional £120 million for the Green Industries Growth Accelerator targeted at manufacturing capacity in the clean energy sectors where the UK has the strongest current or potential advantage: CCUS, hydrogen, offshore wind, networks, and nuclear. This brings overall funding for the Green Industries Growth Accelerator to over £1 billion.
- The pensions reforms currently being developed by the Government, Financial Conduct Authority and The Pensions Regulator, which will also help ensure that pension funds are investing in the full range of asset classes including infrastructure.