Diolch, Dirprwy Lywydd. I very much welcome the opportunity to respond to this really interesting debate, and thank you, Janet, for bringing it forward. And everybody is absolutely right: the climate emergency demands that we use all the tools at our disposal to accelerate progress to a net-zero energy system. We are absolutely committed to moving our energy system away from fossil fuels and towards renewable energy, as a critical path to achieving our statutory targets and international obligations as a globally responsible nation.

So, alongside extensive renewables developments, hydrogen is likely to have a significant role in Wales's future power, transport and industrial sectors and may also offer an alternative to fossil fuel in our heating systems. Our engagement with industry in Wales, and through our newly established net-zero industry Wales panel, highlights that hydrogen has huge potential to reduce emissions and support the economic transition, especially in energy-intensive industries. For some, hydrogen is seen as key in their road map to net zero. Transport is another potential area of use, particularly for some heavy goods vehicles, rail and potentially aviation, and, indeed, for ferries, as Rhun pointed out. And for the power sector, hydrogen can act as a flexible energy vector to replace the role of gas-fired plant in renewables-based systems.

We're all very aware of the plans from RWE in Pembrokeshire and their ambitions to transition away from gas with hydrogen from renewables, supporting their net-zero ambitions. Wales is extremely well positioned to develop and capture the rapidly emerging economic opportunities offered by hydrogen, particularly when linked to the potential for offshore wind, including the Celtic and Irish seas. However, as I have mentioned before in this Chamber, it is essential that, as we look to decarbonise our sectors, we do not create incentives that lock us into continued dependency on fossil fuels. So, whilst I recognise there is a transition for some sectors in using hydrogen generated from fossil fuels, this must be a rapid transition indeed. We have to move to the exclusive use of green hydrogen as soon as is practically possible, and that is why the development of hydrogen has to be part of a much wider push for greater deployment of renewable energy. The opportunities from renewable energy generation to produce hydrogen when supply exceeds demand must be exploited. So, instead of paying windfarm operators to stop generating, we should pay them to provide a renewable energy source that can be stored and utilised when needed.

We also know there are cost and technical uncertainties in the deployment of hydrogen in the energy system. We are in a cost-of-living crisis, in part driven by high energy costs, so we have to ensure that our approach to decarbonising our energy system is a just one for all consumers, including businesses in Wales. So, that is why supporting innovation in both the private and public sectors is essential to ensure hydrogen and other forms of low-carbon energy contribute to our Net Zero Wales plan and support the economic and social regeneration of our communities.

Through innovation, we can speed up the necessary cost reductions and the deployment of green hydrogen at scale that are very badly needed. The first iteration of our Smart Living hybrid small business research initiative scheme supported 17 hydrogen feasibility and demonstration projects across Wales. The 17 projects in the first year of the scheme are delivering in all regions of Wales, as many Members have highlighted. They range through studies of microgreen hydrogen generation, hydrogen in rural areas, sustainable aviation fuel production, vehicle market development, community-based hydrogen production and a digital one-stop shop hydrogen advice and networking platform.

Our second phase of hybrid will fund a pipeline of business feasibility projects, as well as higher level demonstrator and prototyping work on the ground across the country, and it's our intention to create a pipeline for new Welsh businesses, supporting local ownership and wealth retention across Wales. As we do so, we are committed to working with the UK Government and have already been successful in leveraging in UK funding on the back of our investment. And whilst we very much welcome the funding that is available from the UK Government, if we are to achieve the ambitions for 10 GW by 2030, then more funding is urgently needed. And here I agree with the findings from the Skidmore review that the UK Government needs to confirm long-term funding to support the scaling up of hydrogen production. And I hope, Janet, that you will be making strong representations to colleagues in Westminster, off the back of Chris Skidmore's excellent review, to ensure a greater level of funding is available to support future hydrogen projects across all parts of the UK.

We have supported Welsh stakeholders with their potential bids for UK funding, and we will be learning the lessons from hydrogen heating trials elsewhere in the UK. And in the meantime, we will be assessing the role of hydrogen in heating in our heat strategy, which will be published this year, and as part of our energy-planning work.

So, Dirprwy Lywydd, we are absolutely committed to Wales being at the forefront of the development of this new sector and setting out our strategic approach to make that happen. Our hydrogen pathway sets out 10 objectives, focused on short-term actions, driving demand, production and cross-cutting action to 2025. They also set out avenues to plan for larger scale projects to ensure Wales is well positioned with respect to hydrogen and fuel-cell technologies. As we build on that pathway, we believe this will provide the strategic focus we need to make sure that hydrogen does and will have an important role to play in meeting net zero and make sure that Wales is well placed to be at the absolute forefront of this developing sector. Diolch.