Part of the debate – in the Senedd at 5:24 pm on 15 June 2022.
We have heard already from a number of people about the benefits that would come from developing the green hydrogen sector in Wales and the need for a clear commitment from the Welsh Government to support this change through the introduction of a specific strategy. My own comments will focus on the impact that green hydrogen can have on transport.
Decades have passed since the Kyoto protocol was signed, and we find ourselves living in a time when, within another decade, our global climate may reach a point of no return. Our transport sector still runs overwhelmingly on fossil fuels, especially oil, and more and more voices are calling for revolutionary, far-reaching change.
Over the past two years, the public debate on decarbonising the transport sector has been dominated by discussions about electric or battery-powered cars, which represent a promising pathway towards reducing carbon levels. As electric cars enter mass production, prices will fall, and batteries will become more powerful as well. When electric cars are powered by renewable energy, they could really help to reduce the carbon footprint of the transport sector. Having said that, Llywydd, there will be some drawbacks in the near future. Battery-powered cars weigh a lot more than normal cars. Also, recharging battery-powered cars will always take much longer than refilling cars with petrol.
As a source of clean energy, hydrogen can play a massive role in the transition to a low-carbon economy. As a transport fuel, green hydrogen can reduce emissions and improve air quality in our communities—something that will be so important that we will be focusing on it tomorrow. And hydrogen can also be used to overcome the intermittency of the renewable ways of powering our transport.
According to Network Rail, up to 1,300 km of railway lines will need to carry hydrogen trains in order to reach the net zero target by 2050. And the Government is aiming to decarbonise 100 per cent of buses and taxis by 2028. That's a very ambitious goal that will require significant investment in hydrogen, especially when we consider the fact that there are around 9,100 buses registered in Wales. And any investment can also help with taxis and private-hire vehicles.
If we are serious about decarbonising transport, the Welsh Government must start thinking strategically about the use of green hydrogen in this sector. Local authorities are already working on this, and public procurement programmes for hydrogen in the transport sector could help the industry increase mass production and reduce prices. Tax incentives could play a role, perhaps, or the introduction of changes to the tax rates for hydrogen, as compared to petrol. They could certainly help to reduce prices. And beyond the transport sector, when the price of hydrogen has fallen sufficiently, hydrogen could help to decarbonise other parts of the economy as well, such as the iron, steel or cement industries.
Wales is home to a large number of bodies that have both an interest and expertise in the field of hydrogen, including academics and start-ups. However, until now, a lack of co-ordination at a national level has held us back. That can change today, as Rhun ap Iorwerth said. We could embark on a green hydrogen revolution in Wales—what an exciting opportunity, if we choose to seize it.