9. Short Debate: Developing the hydrogen energy sector in Wales

Part of the debate – in the Senedd at 6:10 pm on 18 January 2023.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 6:10, 18 January 2023

Reaching net-zero greenhouse gas emissions by 2050 is a very significant challenge. It requires urgent action across the economy. The International Energy Agency has said

'an unprecedented clean technology push to 2030' is required. Hydrogen, we all know, has a very key role to play. As the House of Commons Science and Technology Committee have noted,

'it has unique features as a clean burning fuel that can be stored on long timescales with scalable production through several low-carbon means. This enables hydrogen to play a role not only in decarbonising our energy consumption, but also in providing more resilience for our energy system, and increasing the UK’s energy security.'

There is no doubt that low-carbon hydrogen could be a versatile replacement for high-carbon fuels used today and that Wales is well-placed to be a hydrogen powerhouse. There are so many exciting projects across our country. The south Wales industrial cluster is looking at the production and transport of hydrogen and the capture and use of carbon dioxide on a large scale. RWE is developing a green hydrogen project on their existing Pembroke power station site. It's a brilliant scheme. For example, green hydrogen produced by using electricity from renewables will be used in local industry and as a fuel for future hydrogen-powered HGVs. ERM Dolphyn and Source Energy have announced plans to develop gigawatt-scale green hydrogen floating wind sites in the Celtic sea. HyNet is going to reduce the amount of carbon dioxide emitted from across the region by a quarter through locking away the carbon dioxide emitted by heavy industry and providing locally produced, low-carbon hydrogen to power industry and transport and heat homes and businesses. A Deeside-based hydrogen fuel pioneer has now secured nearly £250,000 of UK Government funding to perfect carbon capture technology that will help lower the environmental impact of its waste-to-hydrogen plants, and we cannot forget that plans for a hydrogen hub on Anglesey have been approved, paving the way for the first development of its kind in Wales. In fact, the UK Government has developed a strategy that sets out how the Conservative Government will drive progress in the 2020s to deliver our 5 GW production ambition by 2030.

However, it has to be said, Members, Llywydd and Minister, that both Scotland and Wales are less ambitious. Scotland’s hydrogen action plan only provides actions to be taken over the next five years, and here in Wales we are reliant on a hydrogen pathway that is only informing activity that will take place in the short term, to 2025. No surprise, then, that the consultation responses published just last June included findings such as multiple respondents noting that they felt that the pathway only covered short-term goals and should be more ambitious. They felt that a long-term strategy is required to enable the roll-out of the hydrogen economy and build a long-term market for low-carbon projects. And several respondents suggested that the pathway even lacked detail and ambition in some areas in which hydrogen is expected to play a key role in the energy system in the long term: decarbonisation of industry, for heating buildings, and as an energy storage solution allowing increased use of intermittent renewables.

Even your own Government states, Minister, in the summary of consultation responses, and I quote,

'the Pathway was to define a set of short-term objectives, focusing on actions and projects that can be implemented in the early part of the 2020s. The document is not (and was not intended to be) a comprehensive strategy for hydrogen in Wales, rather it sought to define a set of no regrets actions to position Wales to take advantage of the range of benefits that increased uptake of hydrogen can bring.'

So, where is that comprehensive longer-term strategy for hydrogen innovation in Wales? Alongside incorporating all the fantastic activities that are already happening, I would specifically be interested to see the strategy include sections that set ambitions for hydrogen in communities, in transport and in planning.

Communities in Scotland and in England are experiencing change. In some instances, only limited changes are needed to gas pipes and homes for hydrogen to be used for heating, hot water and cooking. In fact, using hydrogen in the gas network isn't a totally new concept. Hydrogen used to run through the nation's pipes as part of town gas before the 1960s, and now in England, at Whitby in Ellesmere Port, properties in the confirmed hydrogen village will be provided with a free hydrogen-ready gas boiler upgrade, and hydrogen will be supplied from 2025. Similarly, in Scotland, this year, 300 homes in Buckhaven and Methil will be powered by green hydrogen. But, Minister, I'm a Welsh parliamentary Member. What about our communities here in Wales? We should all here aspire to have a hydrogen neighbourhood trial delivered, and as soon as possible, followed by a large hydrogen village trial and a town pilot by the end of this decade. 

In terms of transport, I have referred already to HGVs and I must acknowledge that attracting vehicle integrators to Wales and developing fuel-cell trains is part of your pathway's own recommended actions. However, what is our ambition for private vehicles? As my colleague, James Evans MS, will know better than most, Riversimple is pioneering the next generation of zero-emission vehicles. They use hydrogen, not batteries, and they emit nothing but water. Green Tomato Cars operates a fleet of 50 hydrogen vehicles in London, and DRIVR runs a fleet of 100 hydrogen taxis in Copenhagen. So, I would be delighted to see incentives for hydrogen taxi fleets here in Wales. 

We need to be looking at removing barriers to hydrogen cars for private use. In fact, there has even been good news recently, as UK Government funding is now going towards a Toyota project to create a hydrogen fuel cell powered version of its world-famous Hilux pick-up. However, already on the British market are Toyota Mirai and Hyundai Nexo, so we could be supporting our residents to invest in those green modes of transport. In 2021, Norwegian ferry operator, Norled, took delivery of the world's first liquid hydrogen powered ferry, MF Hydra. It has capacity for 300 passengers and 80 cars. Norway has been doing groundbreaking work to demonstrate the viability of hydrogen as a fuel for passenger ships. Wouldn't it be amazing if we had an ambition to work with the Irish Government and the private sector to possibly see hydrogen-powered ships sailing between our ports? 

Finally, there is a need to ensure that our planning authorities are properly supported to provide quick approval of hydrogen schemes. For example, I'm aware that responses to your consultation included concerns about the planning regime here in Wales. Some had noted that long-term planning timescales cause major delays to the commissioning of larger scale projects, adding an unnecessary additional risk. Detail as to whether you've explored possible solutions to concerns about planning would be great to hear tonight. At the end of the day, we should remove all possible barriers to hydrogen, especially green hydrogen, from developing to play an even more important role in Wales. At heart, you could do more to help by creating a proper hydrogen strategy for Wales. I do hope in your response, Minister, that you will be very positive on this debate. Other contributions from other Members tonight will prove to you just how important it is that we include hydrogen big style in our drive for renewable, carbon-zero targets. Diolch.