Hydrogen Transport — House of Commons, 2020-11-26
Topic: Energy
Alexander Paul Thomas Stafford (Conservative, Centre-right): I believe the hon. Member missed the earlier part of the debate, when I touched on green and blue hydrogen. We all want green hydrogen eventually, but it is blue to start off with, with carbon capture and storage I urge the Government to bring forward another world first: a hydrogen political working group consisting of representatives from the UK Government, devolved Administration Ministers, Mayors and council leaders. This group can ensure that hydrogen policy across the UK is co-ordinated and implemented at pace We must act quickly and decisively to avoid being left behind by international competitors. In the past few months, Germany has committed €9 billion to hydrogen, and France and Portugal have committed €7 billion. The European Union is planning hundreds of billions of euros in investment in hydrogen technology. Australia, China, South Korea, Japan, Canada, Norway, Chile and many other countries around the world see hydrogen as critical to their immediate economic growth and long-term net zero goals. The UK must make its move now if we are to pip those countries at the post. They have announced this money. Let us get the money on the ground first and develop it Overall, about 20 countries that collectively represent about 70% of global GDP have announced a hydrogen strategy or a road map as a key pillar of their decarbonisation ambitions. We have only to look to the race for dominance in the battery industry to see why we cannot allow ourselves to fall behind today. For instance, today there are 136 battery mega-factory plants in operation or being planned. Some 101 of those are in China, and eight are in the USA. China is opening almost one new mega-factory every single week. The UK has well and truly lost out in the battery industry, but we are still in the race for hydrogen, and we can still win It is apparent why so many countries are clamouring to pursue a hydrogen transport agenda. The global hydrogen economy is set to be worth $2.5 trillion and create 30 million jobs by 2050. The economic benefits for the UK are huge, especially for industrial areas, such as my constituency of Rother Valley. Here in the UK, the Hydrogen Task Force believes that hydrogen can add £18 billion in gross value added by 2035 and support 75,000 additional jobs. More immediately, businesses have told the Treasury that it has £3 billion-worth of shovel-ready private investment awaiting the right policy frameworks and commitment from the Government That is fantastic news for constituencies in the northern powerhouse and the devolved nations. The Zero Carbon Humber project is a fantastic example of the potential of so-called hydrogen hubs, which I envisage in areas such as the Rother Valley and across the red wall. The Humber is the largest carbon-emitting industry cluster in the UK, and like South Yorkshire, much of the Humber’s economy is built on manufacturing, engineering and the energy sector. A partnership of 12 major organisations and a bid to the Department for Business, Energy and Industrial Strategy has resulted in the creation of an ambitious project to make the Humber the world’s first net zero carbon industrial cluster, supporting new industry and encouraging factories Addressing jobs first and foremost, the potential for a hydrogen revolution in South Yorkshire to rival the coal industry is immensely exciting. We have already made great strides in establishing ourselves as a national hub for the production of green hydrogen. Rother Valley’s manufacturing expertise remains second to none, and our ambition and drive are matchless. It is those skills that we hope to redeploy in the green revolution, and as such there is no better place to serve as the hub of the hydrogen industry For instance, I have been supporting the upcoming opening of the world’s largest electrolyser factory, operated by ITM and located in Meadowhall, Sheffield, which is on the border of my constituency. Hydrogen storage cylinders are also manufactured nearby. Rotherham, part of which is in my constituency, is home to England’s most northerly hydrogen refuelling station. The region has an onshore wind sector with the potential to expand. It is key to the production of green hydrogen, and our local city of Sheffield has two major district heat networks. Recently, I met the University of Sheffield’s Advanced Manufacturing Research Centre, which is a world-leading hub of research and innovation in technologies such as hydrogen However, that is only the beginning. As we attract more investment and the local hydrogen industry grows, more companies will want to take advantage of our infrastructure, creating manufacturing jobs, graduate jobs and supply chain jobs alike. In turn, South Yorkshire stands to reap high economic returns that will rejuvenate the local economy. Indeed, I intend to turn Rother Valley into Britain’s hydrogen valley I conclude my speech by emphasising the importance of using hydrogen as one part of our carbon-free transport future. No one technology alone is the answer, because each option is at a different stage of development and the economics of each are different depending on the mode of transport. The case for hydrogen is irrefutable, particularly for heavy duty, long-distance vehicles such as heavy goods vehicles and buses. Decarbonising those modes of transport is vital to meeting our net zero targets A world-leading hydrogen industry will boost the local and national economy, providing an uplift in these challenging times, and bolster UK plc as we export our expertise and technology around the world. The UK has all the tools required for leading the hydrogen revolution. We must ensure that we seize the moment and take our rightful place as the capital of hydrogen transport. I look forward to working with the Minister and the Government as we march towards a cleaner, greener hydrogen future for all parts of the United Kingdom.