Part of the debate – in the Senedd at 5:33 pm on 15 June 2022.
I'd like to start by thanking Rhun for his continued advocacy of hydrogen. He's pushed it for quite some time in Plaid Cymru and in this place. I remember that debate almost two to three years ago; a very worthwhile debate. For Members in the Chamber, Rhun is as excited about hydrogen as he is about Wales going to the world cup, so I hope that shows how much of a passionate advocate he is.
As has already been pointed out in this debate, hydrogen is a particularly promising part of the Welsh green economy. It has the potential to play a key role in heating households, fuelling industry and to create high-quality work in Wales. If we act quickly on this, we have real potential to be leading the way at the forefront globally of this sector, which will bring us both economic and environmental gains. Demand for hydrogen has tripled since 1975, and is continuing to rise. It's thought that hydrogen will account for 12 per cent of global energy use by 2050, and will take off in the mid 2030s. However, transition to net zero and greater hydrogen production in Wales will not occur to the best of our ability and potential without proper Government planning and funding. A long-term funding model for hydrogen is necessary for investor confidence. Green hydrogen production in particular, which I will focus on in my contribution, which requires an input of renewable energy and water, and may, ultimately, release the full potential of renewables in Wales, is uniquely positioned to harness its potential as a country.
Recognised as being essential for the deep decarbonisation of economies, green hydrogen is forecast to be one of the growth industries of the 2020s. Wales, with extensive natural resources, is well placed to develop locally owned green hydrogen supply chains, building on projects that are emerging in all four corners of the country, and to help release the renewable energy potential in the middle. It's time the Government now advances at pace towards unlocking the green hydrogen sector in Wales by assessing the infrastructure requirements, such as dedicated hydrogen pipelines, identifying local demands for hydrogen, which will likely be transport to begin with, but expanding to heat, industry, power and agriculture, also encouraging partnerships and joint procurement with local authorities and assessing local ownership models for the hydrogen supply chain. Many of the solutions to the current cost-of-living crisis, which is largely being driven by rising energy costs, are purely reactive rather than long term and proactive. But investing in green energy, such as hydrogen, will protect us against us future crises, allowing us to be self-sufficient and bring down energy prices, protecting the most vulnerable who have been hit hardest by this cost-of-living crisis.
Expanding our hydrogen industry also creates the potential for high-quality green Welsh jobs. One in five Welsh workers are in climate critical sectors that may be lost due to net-zero targets. Ensuring that there are jobs that people have the correct training and education for in the hydrogen industry will contribute towards a just transition, making sure that no-one is left behind during the green industrial revolution, and guaranteeing prosperity for workers in Wales. According to a 2020 report from the UK hydrogen taskforce, scaling up hydrogen industries in the UK could support 75,000 jobs by 2035. Doing so will also bolster Wales's foundational economy and improve local economies and communities.
Green hydrogen will also contribute to Welsh Government's circular economy targets. If we want to achieve net-zero waste and carbon neutral goals by 2050, then hydrogen could play a major role. Green hydrogen is well suited to the circular economy also. It has many applications and can be made using renewables. It is a promising alternative to high-carbon fossil fuels in the transport, manufacturing and power sectors. It is thought that shifting to a circular economy could save the Welsh economy up to £2 billion, as well as creating green jobs and ensuring the Welsh economy is resilient to increasing costs and reduced resources.
This is not the first debate on hydrogen that Plaid Cymru have brought to the Senedd, as I mentioned earlier, but I am confident that, over the years, and today, Plaid Cymru have made the case for an ambitious hydrogen strategy, and have expressed the pace at which we need to go.