11:00 Hannah Bardell (in the Chair)

It is a pleasure to see you in the Chair, Ms Bardell. Many Members in the north-west and north Wales have mentioned the genuine interest in, and support for, the HyNet project. Speaking as the Member for an area where industry consumes about 5% of the whole country’s total energy consumption, I am only too conscious of the need for us to change if we are to meet our climate commitments. Faced with that fact, the companies that are responsible for a lot of those emissions have been working together to address the future and are working on a whole series of projects that will contribute to our reaching net zero while also enhancing the local economy.

That means not only showing people that it is a good thing for everyone if they are at the spearhead of a new way of heating our homes, and that they can play a big role in meeting our net zero targets. It also means ensuring that people feel that things are being done with their consent and agreement, rather than them being done to them. Of course, a big part of that will be communication, and I know that Cadent has already begun working on ways to advise residents about the project and will be opening a new shop in the town in July, so that residents can find out more.

Obviously, residents will have legitimate questions, and I imagine that they will want to know about the potential costs, their safety and the level of disruption they will face. From the information I have had to date, I think that all those concerns can be dealt with. With the rapidly increasing energy bills that we all face, I would hope that the cost issue will be a positive for my constituents, with at least a guarantee that they will not pay any more for their energy. I hope that there is scope for us to go further than that and be able to offer them a discount. It is early days, but the only inquiries that I have had so far from constituents are about why people have not been included in the trial, which demonstrates the positive spirit of the people of Ellesmere Port, their willingness to embrace the future, and their eagerness to play their part in tackling climate change.

I think take-up will be significant, based on the early response, and if the trial proves a success, there will be a national change because approximately 23 million homes and businesses in the UK rely on natural gas for cooking and heating. To put that in context, that represents a quarter of the UK’s carbon dioxide emissions, so we need to act on the whole of household infrastructure if we are to get to net zero. What better way to do that than an initiative that maximises support for UK jobs and enhances the principle of “make, buy and sell more in the UK”?

Some people out there will say that we should not be doing this at all because it involves the wrong type of hydrogen, but the project has the potential to cut CO 2 emissions by at least 80%, which is a pretty good start. It will not deliver us to the promised land of net zero, but it is an important—I would say probably inevitable—stepping-stone for getting us there.

The Climate Change Committee, which is the Government’s independent adviser on climate change, has recommended that significant volumes of blue hydrogen be produced by 2030 to help the UK to meet its climate targets, help industry to cut emissions quickly and ensure that there is a market for green hydrogen once it becomes cost competitive. The committee’s analysis found that blue hydrogen could save up to 85% of emissions compared with unabated use of fossil gas.

The committee has also concluded that blue hydrogen is the right first step to take because the technology available now will help emissions-intensive businesses that cannot electrify their processes to get on the road to reducing their emissions this decade. Critically, that will help to preserve jobs in the UK’s industrial heartlands and in my constituency as we target net zero further down the road. We want to get our industry powered and our homes heated by green hydrogen, but if we take a hard-line approach and insist on going for the zenith of green hydrogen immediately—all or nothing—I fear that it will probably not happen at all, which means we will have missed the opportunity to reduce our emissions now.

In some industries, those technologies are just not ready to go at a competitive price, and if we do not take those first steps now, over the medium term we will see those industries and jobs move abroad, and they might continue to emit the same levels of CO 2 that they emit now. We would end up in a lose-lose situation. We would lose our chance to reduce emissions and lose the chance to preserve and increase the number of highly skilled, well-paid jobs that go with those industries. We know that there are voices out there that are only too ready to claim that protecting the environment costs jobs. We cannot give those voices any opportunity to gain strength. Our focus must be on delivering a just transition. Along with the need to bring people with us on the village itself, there is a wider need to bring the country with us and win the argument that, if we get the balance right, it will be a win-win rather than lose-lose situation.

I will conclude by saying why all this matters. I am sure we all want our planet to have a future, and I genuinely believe that we have the talent and innovation as a species to stop climate change overwhelming us. I am not so sure that we have the political will. It is through projects such as this that we will address that head-on and meet the challenge.

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11:13 Jacob Young (Redcar) (Con)

We must consider why hydrogen works as an alternative to other ways of decarbonising our homes. The hon. Member said that 85% of homes are connected to the gas network. We need to think of a way to decarbonise that. Let us be under no illusion that both ways end with significant costs, whether we go down the route of heat pumps in every home or hydrogen boilers, or a different one. Every way comes with a significant cost.

I should say that I am chair of the all-party parliamentary group on hydrogen, so I have a vested interest in this field. The reason I am so passionate about the hydrogen village project is that hydrogen represents an opportunity to take the consumer and the taxpayer along with us on the journey towards decarbonisation. With heat pumps, we will have to say to the owners of a terraced house in Middlesbrough, who are on a low income, that they will lose a large portion of their garden because they have to put a borehole in it for a heat pump; they will have to refit all their radiators; they will have to insulate the insides of their home differently; they will have to buy new furniture, because none of their furniture will fit anymore; and, on top of all that, we will charge them £5,000 for the pleasure, even with the Government grant. They will then have to change the way they heat their home altogether, because using a heat pump is more like using an Aga than a boiler. That is why I see hydrogen as representing an opportunity to decarbonise home heating, while taking the consumer along with us.

This represents an opportunity for us to demonstrate decarbonisation, while taking people along with us in the long run. The hon. Member for Ellesmere Port and Neston is right that next year we have an opportunity to decide between Redcar and Ellesmere Port, or we have the opportunity to choose both. That is my argument—it should not be an either/or. Ultimately, we do not want a hydrogen village in the UK; we want a hydrogen UK. To get to that stage, we need as much evidence as possible. To get that evidence, we need both Redcar and Ellesmere Port. We need the Government to focus on how we can take that forward for the whole of the UK. I commend the hon. Member for what he has said today, and I leave the Minister with that thought.

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11:17 George Freeman (Conservative)

I will start by framing our hydrogen commitments within the broader context of clean energy, and then deal with the specific points that have been made. I am responding today on behalf of the Minister for Energy, but also as the Minister for science, research and innovation. We see the hydrogen revolution in the heating of homes and the powering of vehicles—in particular heavy goods vehicles, trains and planes—as a fundamental part of our clean energy revolution. That is why, as Minister in charge of our science, research and innovation budget, I am strongly supporting the net zero transition and innovation. I say that as a former Minister of State in the Department for Transport, where, in addition to the electric vehicle revolution, we have now stepped up fast to support hydrogen roll-out in the transport sector.

Last year, I was pleased to see that HyNet North West, in north-west England and north Wales, which I know the hon. Member for Ellesmere Port and Neston has long championed, was selected to progress within track 1 of the industrial decarbonisation cluster sequencing process. That puts the region at the forefront of the industrial “SuperPlaces” we are supporting in this revolution. In the Government’s 10-point plan for a green industrial revolution, we set out the goal of supporting industry to deliver a neighbourhood trial by 2023, a village-scale trial by 2025 and a potential hydrogen-heated town before the end of the decade. Fundamental to our approach is the development of hydrogen hubs: centres of expertise that drive forward and accelerate the adoption of hydrogen as an energy source. The plans for a hydrogen neighbourhood trial are already under way, as colleagues know. That trial in Fife will supply hydrogen to around 300 homes, with hydrogen distributed through pipes laid parallel to the existing gas network. The trial of hydrogen for heat on a large village scale will be the first of its kind globally. It is a groundbreaking project.

With regard to multiple hydrogen trials, colleagues can see the logic of our next step, which is the village and neighbourhood trials. That combination, alongside the wider programme of research and testing that we are running, is designed to provide the Government with the necessary evidence to take big strategic decisions on heating within a matter of two or three years. I know the ambition that colleagues have shared today to go further and faster is shared by the Secretary of State, the Minister for Energy, Clean Growth and Climate Change, and the Prime Minister. It is not lack of political will that is holding us back; we simply need to make sure that we have the practical realities of roll-out and conversion of the gas network clear.

Colleagues have raised the issue of blue versus green hydrogen. I want to make it clear that our hydrogen strategy sets out the Government’s twin-track approach to supporting both electrolytic green and carbon capture-enabled blue hydrogen production. We see blue and green hydrogen as complementary and not as an either/or choice. Our new UK standard for low-carbon hydrogen production will ensure that the technologies we support—green, blue and other potential production routes—make a real contribution to our decarbonisation goals.

I reiterate my thanks to the hon. Member for Ellesmere Port and Neston and my hon. Friend the Member for Redcar for raising the issues today. I hope they can see how committed the Government are to making sure we protect consumers and get the practical logistics right. They would be the first on their feet if we rushed into something that had not been properly thought through. We want to make sure that the trials lay the foundation for a wider nationwide roll-out. The aim is not to have one or two world-class trials; the aim is to prove what we need to do to roll out hydrogen at an industrial scale across the country as part of our net zero targets.

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