7. Plaid Cymru Debate: Hydrogen strategy

Part of the debate – in the Senedd at 5:06 pm on 15 June 2022.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 5:06, 15 June 2022

I want this Parliament and the Welsh Government to get excited about hydrogen. I can tell you now what I'd like to hear from the Minister. Quite simply, I want the Minister to say, 'I am serious about wanting Wales to be a player in the emerging hydrogen sector.' I'm determined that, with a clear strategy and well-targeted investment, we can maximise the massive opportunities that the hydrogen sector represents for the Welsh economy, for jobs, for communities, and, of course, for the environment. It will be impossible to fully decarbonise the UK's economy without a major role for hydrogen, and Wales can be a big, big winner. 

Wales is home to world-leading hydrogen research and development projects, including facilities at several universities. We have hydrogen capabilities through our wind energy presence; we have the strategically important ports and the infrastructure in ports in the north and in the south; we already have numerous industrial and non-industrial companies with hydrogen expertise. When I last led a debate on hydrogen here in the Senedd in early 2020, it coincided with the launch of a new Wales hydrogen trade association, HyCymru. Wales really can help lead the way in the development of a hydrogen economy as part of a wider UK green industrial revolution.

Now, we already have excellent examples of innovative hydrogen projects. Back in that debate two years ago, I talked about the potential for hydrogen growth in my constituency. We now already have the hydrogen hub being developed in Holyhead by the social enterprise Menter Môn. We have the work on hydrogen by the south Wales industrial cluster, the Energy Kingdom project in Milford Haven. I was reading today about the world's first smart hydrogen hybrid heating system, demonstrated in Pembrokeshire earlier this year. Wales is also the home of Riversimple, that wonderful car company, making electric cars powered by hydrogen rather than batteries. It's a long list, and it represents the foundations, I think, of a successful sector.

We're a nation rich in the natural resources needed in order to produce hydrogen. Our abundant access to fresh water, and, in combination with that, our vast offshore and onshore wind resources, means Wales is strongly positioned to become a giant in green hydrogen, the form of hydrogen with the lowest carbon. It should form the basis of Wales's hydrogen strategy, which is why we have put it in our motion front and centre.

Now, Welsh Government has already put its toes in the water. That's good. Today is about where we go next, how fast we go there, and with what level of determination. Welsh Government has undertaken a pathways assessment to map out measures that can initiate hydrogen developments in Wales, but, although there is strong multisector activity in hydrogen, we don't yet have a coherent strategic framework in which to steer progress. We need a comprehensive Government strategy to be prepared that sets out clear goals and sets out ambition, and as soon as possible, given the kinds of developments we're now seeing in many countries around the world. For example, setting a target of, say, at least 10 GW of green hydrogen supplied by 2035 would provide the framework for commercial activity to grow, coupled with clear policy signals in taxation, regulatory and other measures to stimulate demand.