14:30 The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)

Under the business model, projects will be paid a subsidy for the hydrogen they produce through a revenue support contract, similar to the highly successful contracts for difference for low-carbon electricity generation. The business model contracts for hydrogen will be managed by a hydrogen production counterparty. Initial projects are to be selected through allocation rounds run by the Department for Energy Security and Net Zero. To receive business model support, a project must be an

This secondary legislation represents an essential step towards implementing the hydrogen production business model to ensure that we can support the deployment of low-carbon hydrogen projects to achieve our 2030 ambitions, improve energy security and help achieve net zero.

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14:34 Dr Alan Whitehead (Southampton, Test) (Lab)

The explanatory notes state that the initial allocation gives way to a competitive tender process later. The directions therefore concern the initial allocation process in the first instance, but they are all to be informed by the centrepiece of the SI—the low-carbon hydrogen standard, which is generally called “the standard” in the regulations. It refers to a detailed document, which sets out the greenhouse gas emissions and sustainability criteria that programmes that apply for an allocation contract should follow.

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14:50 Ronnie Cowan (Inverclyde) (SNP)

I shall keep my remarks short and sharp. It does not mean that the Minister will like them, but at least they will be brief. I turned up for this Delegated Legislation Committee at six o’clock last night, so I cannot be accused of being late to the show, but I think that the UK Government can. In 2021, the UK was ranked as the second most attractive market for hydrogen, but the UK Government’s lack of commitment means that the UK is now ranked eighth. It has slipped behind Germany, Japan and Canada. That is because the UK Government continually change their attitude to renewable energies.

My concern is that lack of ambition is restricting our ability to create a net zero environment. The UK target is 2050; Scotland’s is 2045. I hope that the Minister will allay my fears. What do we kick on to after 10 GW? When will that happen and how much will it cost the taxpayer?

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