8. Plaid Cymru debate: Hydrogen energy

Part of the debate – in the Senedd at 5:32 pm on 27 June 2018.

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Photo of Ken Skates Ken Skates Labour 5:32, 27 June 2018

Diolch, Dirprwy Lywydd. I very much welcome the opportunity to debate this important subject today, and I'd like to thank Simon Thomas for bringing forward this report. I'd also like to reiterate what Russell George said; I think this is an exemplar use of research budgets. This is a superb research report and I welcome it very much. I think it's fair to say that the future, in many ways, does belong to those who are open, rather than closed; those who are open to new ideas; those who are open to challenge; those who are open to new technology; and, crucially, those who are open to change.

I think, as Simon said, we need to look at hydrogen's role in decarbonising transport within the wider and integrated context of the role that it has to play in decarbonising our entire economy and our communities under the Environment (Wales) Act 2016. Taking forward the commitments under the environment Act, we'll be launching a consultation next month on our decarbonisation pathways to 2030 and beyond, and we'll be seeking views on those actions that should be priorities for Wales.

As only 5 per cent of hydrogen is currently green, we need to ensure that, in moving to hydrogen, we do not inadvertently restrict our ability to decarbonise, and I think this is something that everybody recognises. So, in order to do this, the Welsh Government is considering how we could produce hydrogen using excess renewable generation alongside carbon capture utilisation and storage to decarbonise transport, alongside heat, industry and power.

We are outcome specific in our commitment to moving to a decarbonised transport sector in Wales. However, we remain technology neutral on the role of different fuels and technologies in achieving this aim, including the role of hydrogen. The current trend is towards hybrid and electric vehicles, but there is a growing interest in hydrogen and hydrogen fuel cell propulsion, which we are already supporting.

The £2 million support for Riversimple is indicative of our support for the shift to a low-carbon economy and transport sector. We funded this aspirational and inspirational project at a time when many considered it highly unlikely to become a viable enterprise, and we're now helping Monmouthshire County Council to explore opportunities to build on the hydrogen Riversimple trial taking place in their area in terms of sustainable fuels and smarter mobility. It's an extremely exciting piece of work, particularly given that it's in a rural environment. Our Sêr Cymru programme is funding research at Swansea University into hydrogen fuel for vehicles and at Cardiff University, who are researching technology for green hydrogen generation.

Our £5 billion investment in the new rail service for Wales includes a major commitment to decarbonisation. We explored fully the option of hydrogen technology with bidders for the Wales and borders rail service during the procurement exercise, and we will continue to look for innovation on the network in the future. Our aim, as outlined in—[Interruption.] Yes, of course, yes.