Recommendations & Conclusions
24 items
1
Conclusion
Sixth Report - Hydrogen and carbon capt…
Acknowledged
The UK and Scottish Governments have clear strategies and appropriate aspirations for hydrogen, with significant commonality in their ambitions. Overall relations between the UK and Scottish Governments in this area appear to be good with effective official-level and ministerial cooperation.
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The UK and Scottish Governments have clear strategies and appropriate aspirations for hydrogen, with significant commonality in their ambitions. Overall relations between the UK and Scottish Governments in this area appear to be good with effective official-level and ministerial cooperation.
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Government response AI summary
The UK Government agrees that both UK and Scottish Government have clear strategies and ambitions for hydrogen and engage regularly on policy developments.
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Scotland Office
2
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
The UK and Scottish Governments have different net zero target dates of 2050 and 2045 respectively. We recommend the UK and Scottish Governments respond to this report explaining how they will work together to ensure respective targets will be met. The Scottish Government should demonstrate how it is engaging with …
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The UK and Scottish Governments have different net zero target dates of 2050 and 2045 respectively. We recommend the UK and Scottish Governments respond to this report explaining how they will work together to ensure respective targets will be met. The Scottish Government should demonstrate how it is engaging with UK Government in reserved areas to ensure net zero is reached in Scotland five years earlier than the rest of the UK.
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Government response AI summary
The government states that it is working with the Devolved Administrations on tackling climate change and delivering net zero, collaborating at all levels, including through the Net Zero, Energy and Climate Change Inter-ministerial Group and the official-level Net Zero Nations Board.
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Scotland Office
3
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted in Part
The UK and Scottish Governments arrived at their respective 10GW and 5GW by 2030 low carbon hydrogen production targets independently of each other, and we are unclear how the two targets align and whether either is achievable. Clarity on this is vitally important given the targets must be reached in …
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The UK and Scottish Governments arrived at their respective 10GW and 5GW by 2030 low carbon hydrogen production targets independently of each other, and we are unclear how the two targets align and whether either is achievable. Clarity on this is vitally important given the targets must be reached in just seven years’ time. We recommend that the UK and Scottish Governments, in response to this report, explain how they arrived at their respective 10GW and 5GW by 2030 low carbon hydrogen production targets and how the two targets align. Furthermore, the two Governments should provide us with a proposed timeline setting out key milestones on the road towards the respective targets to assist us and our successor committees in judging progress and evaluating the achievability of Scotland’s hydrogen production targets.
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Government response AI summary
The government states that delivering up to 10GW of low carbon hydrogen production capacity by 2030 is a stretching but deliverable ambition and that they will be developing a hydrogen production delivery roadmap to show how hydrogen production can be scaled up over the coming …
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Scotland Office
4
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted in Part
We conclude that both the UK and Scottish Governments’ hydrogen strategies require interim targets to ensure that hydrogen production and net zero commitments are met. We recommend that both UK and Scottish Governments set such interim targets for hydrogen production, beyond 2030, to reach its net zero targets planned for …
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We conclude that both the UK and Scottish Governments’ hydrogen strategies require interim targets to ensure that hydrogen production and net zero commitments are met. We recommend that both UK and Scottish Governments set such interim targets for hydrogen production, beyond 2030, to reach its net zero targets planned for 2050. In particular, we recommend the Scottish Government expedite their interim target setting due to the more pressing deadline they set of 2045. By the beginning of the next Parliamentary session, the UK and Scottish Governments should set deadlines for approving a series of steps around hydrogen production and actions to stimulate demand of low carbon hydrogen, as the decisions need to be made without delay to ensure that net zero targets are met, energy security is obtained, job security is provided for workers in Scotland, and cleaner energy production and international competitiveness are realised. By the beginning of the next Parliamentary session, the UK and Scottish Governments must publish a timeline of key decisions for projects, with justification of the dates set out in the timeline, as well as interim targets for production and demand of both blue and green hydrogen, and the phasing out of grey hydrogen.
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Government response AI summary
The government states it is delivering policies to support deployment of new low carbon hydrogen production and will develop a hydrogen production delivery roadmap to show how hydrogen production can be scaled up, but does not specifically commit to setting interim targets or a timeline …
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Scotland Office
5
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
We are concerned that the Scottish Government does not see more potential in Green Freeports to complement Scottish and UK hydrogen policies, despite them being a joint UK and Scottish Government initiative and the Inverness and Cromarty Firth Green Freeport having a hydrogen focus. We recommend that the Scottish 46 …
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We are concerned that the Scottish Government does not see more potential in Green Freeports to complement Scottish and UK hydrogen policies, despite them being a joint UK and Scottish Government initiative and the Inverness and Cromarty Firth Green Freeport having a hydrogen focus. We recommend that the Scottish 46 Hydrogen and carbon capture in Scotland Government explores how to maximise the benefits of Green Freeports for Scottish and UK hydrogen ambitions. Both the UK and Scottish Governments should work together to realise this potential and the opportunities for Scotland.
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Government response AI summary
The UK and Scottish governments will use the business case development of the Green Freeports as a mechanism to explore how they can support Scottish and UK hydrogen ambitions.
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Scotland Office
6
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
We acknowledge the concerns raised by our witnesses around slippage in timings for hydrogen projects. This could delay the delivery of low carbon hydrogen projects and result in a failure to meet net zero targets. Urgency is required now; timely decision making will also mean Scotland and the rest of …
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We acknowledge the concerns raised by our witnesses around slippage in timings for hydrogen projects. This could delay the delivery of low carbon hydrogen projects and result in a failure to meet net zero targets. Urgency is required now; timely decision making will also mean Scotland and the rest of the UK do not get left behind with technology development and hydrogen production when compared to other countries’ hydrogen sectors. We recommend that the UK Government sets out how it will address concerns we have heard around timings of decisions for hydrogen projects, including justification for the timing of decisions and an assessment of the impact the timing of decisions will have for the delivery of low carbon hydrogen projects, net zero targets and Scotland—and the rest of the UK’s— international competitiveness in the sector.
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Government response AI summary
The government is progressing its electrolytic and CCUS processes and plans a second allocation round for electrolytic hydrogen later in 2023, aiming to move to price-competitive allocation by 2025, and will develop a hydrogen production delivery roadmap to show how hydrogen production can be scaled …
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Scotland Office
7
Recommendation
Sixth Report - Hydrogen and carbon capt…
Deferred
Better training in the hydrogen project consenting process for both local authorities and private organisations is required to speed up planning decisions for hydrogen projects. We note the actions the Scottish Government has taken in recent months to streamline these planning issues, including its engagement with local authorities on hydrogen …
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Better training in the hydrogen project consenting process for both local authorities and private organisations is required to speed up planning decisions for hydrogen projects. We note the actions the Scottish Government has taken in recent months to streamline these planning issues, including its engagement with local authorities on hydrogen planning applications. However, the Scottish Government has an important role to play and this work should be a continuing process. As planning is a devolved matter, we would ask for an update from the Scottish Government as to how this work is progressing.
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Government response AI summary
The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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Scotland Office
8
Recommendation
Sixth Report - Hydrogen and carbon capt…
Deferred
We recommend that, in order to speed up the planning process and make it more efficient, the Scottish Government should facilitate the necessary knowledge sharing for planning teams in local authorities and private sector organisations. This should focus on the process of obtaining planning consent for hydrogen projects, covering production …
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We recommend that, in order to speed up the planning process and make it more efficient, the Scottish Government should facilitate the necessary knowledge sharing for planning teams in local authorities and private sector organisations. This should focus on the process of obtaining planning consent for hydrogen projects, covering production sites, storage sites and pipelines and the roles different individuals play in determining process and planning outcomes. The Scottish Government should consider the establishment of a dedicated body to deliver this work and implement it as soon as possible in light of the impending 2045 targets. (Paragraph 39) Carbon Capture and storage
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Government response AI summary
The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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Scotland Office
9
Conclusion
Sixth Report - Hydrogen and carbon capt…
Accepted
Scotland and the rest of the UK will not be able to deliver on their net zero commitments without carbon capture and storage (CCUS): a factor that is critical to the success of the hydrogen industry in Scotland. Carbon capture and storage and hydrogen production will both be required, in …
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Scotland and the rest of the UK will not be able to deliver on their net zero commitments without carbon capture and storage (CCUS): a factor that is critical to the success of the hydrogen industry in Scotland. Carbon capture and storage and hydrogen production will both be required, in conjunction with other renewables, to achieve a just transition from oil and gas.
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Government response AI summary
CCUS is a priority and the government is progressing at pace with a £20 billion funding package, launching the CCUS Track-2 process and recognising the potential benefits of the Scottish cluster, to which over £40m in development funding has been allocated.
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Scotland Office
10
Conclusion
Sixth Report - Hydrogen and carbon capt…
Accepted
Delays to decision making around cluster sequencing and the Acorn Project are disappointing. But we noted the positive comments on CCUS from the UK Minister. Furthermore, such delays lead to an even further deficit in carbon capture facilities in Scotland and the ultimate result is a prolonged period when carbon …
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Delays to decision making around cluster sequencing and the Acorn Project are disappointing. But we noted the positive comments on CCUS from the UK Minister. Furthermore, such delays lead to an even further deficit in carbon capture facilities in Scotland and the ultimate result is a prolonged period when carbon continues to be released at avoidable levels. (Paragraph 53) Hydrogen and carbon capture in Scotland 47
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Government response AI summary
CCUS is a priority and the government is progressing at pace with a £20 billion funding package, launching the CCUS Track-2 process and recognising the potential benefits of the Scottish cluster, to which over £40m in development funding has been allocated.
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Scotland Office
11
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
We recommend that the UK Government accelerates the deployment of carbon capture and storage in Scotland and sets out, in its response to this report, how it intends to do so. Furthermore, in Minister Stuart’s response, he stated that the Scottish Cluster project had already received “£40 million plus”. The …
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We recommend that the UK Government accelerates the deployment of carbon capture and storage in Scotland and sets out, in its response to this report, how it intends to do so. Furthermore, in Minister Stuart’s response, he stated that the Scottish Cluster project had already received “£40 million plus”. The UK Government should provide details of how precisely they have funded the Scottish Cluster so far. We hope that the UK Government provides details for funding for the Acorn Project in the upcoming Budget. (Paragraph 54) Export of low carbon hydrogen
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Government response AI summary
CCUS is a priority and the government is progressing at pace with a £20 billion funding package, launching the CCUS Track-2 process and recognising the potential benefits of the Scottish cluster, to which over £40m in development funding has been allocated.
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Scotland Office
12
Conclusion
Sixth Report - Hydrogen and carbon capt…
Acknowledged
The evidence we have received demonstrates that there is vast potential for the export of low carbon hydrogen and expertise from Scotland, which could generate significant economic benefits to the economy. We welcome some recent policy updates and note the UK Government’s focus on domestic decarbonisation as it strives towards …
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The evidence we have received demonstrates that there is vast potential for the export of low carbon hydrogen and expertise from Scotland, which could generate significant economic benefits to the economy. We welcome some recent policy updates and note the UK Government’s focus on domestic decarbonisation as it strives towards net zero. However, if Scotland—and the UK as a whole—is to become a significant exporter of hydrogen, both governments need to work together.
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Government response AI summary
The UK government agrees that close working between the two governments will be key to realizing benefits from exports, and states they are actively engaging Scottish Government officials on the export of UK hydrogen and related goods, services and expertise.
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Scotland Office
13
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
We recommend that the UK and Scottish Governments work more closely to ensure the achievability of their respective ambitions for hydrogen exports, and that the economic benefits are realised. In its response to this report, the UK Government should continue to update this committee on progress over its timeframe for …
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We recommend that the UK and Scottish Governments work more closely to ensure the achievability of their respective ambitions for hydrogen exports, and that the economic benefits are realised. In its response to this report, the UK Government should continue to update this committee on progress over its timeframe for securing an export market and current progress in assessing the opportunities and risks, as well as addressing the challenges we have described, including around infrastructure and balance between export and domestic consumption. As international trade is reserved, we recommend that the UK Government outlines what it is doing to make hydrogen export more commercially attractive and how the UK Government plans to bring in investors while engaging with the Scottish Government and hydrogen industry.
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Government response AI summary
The government recognizes the opportunities for UK businesses and is engaging with trade associations and potential exporters to understand opportunities and barriers, and will update its position in line with wider global developments. They also mentioned engaging with investors, the wider hydrogen industry, and the …
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Scotland Office
14
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
Furthermore, we recommend that the UK Government publish modelling to quantify in more detail the long-term investment required to secure an export market and the potential economic benefits that could accrue to the UK, from such a market. The Government must identify markets and establish a presence within them before …
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Furthermore, we recommend that the UK Government publish modelling to quantify in more detail the long-term investment required to secure an export market and the potential economic benefits that could accrue to the UK, from such a market. The Government must identify markets and establish a presence within them before other countries do.
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Government response AI summary
The UK government states the opportunities for investment are set out in the UK Hydrogen Investment Roadmap and it continues to engage to unlock private capital into the UK hydrogen economy.
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Scotland Office
15
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
We recommend that the UK Government highlight its potential for export to overseas markets immediately. This is to ensure that companies in Scotland can benefit from global hydrogen export markets and opportunities and not be left behind. (Paragraph 71) Storage of hydrogen
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We recommend that the UK Government highlight its potential for export to overseas markets immediately. This is to ensure that companies in Scotland can benefit from global hydrogen export markets and opportunities and not be left behind. (Paragraph 71) Storage of hydrogen
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Government response AI summary
The UK Government is actively engaging overseas markets and potential offtakers to scope demand and opportunities for the export of UK hydrogen and will continue to engage colleagues in the Scottish Government to ensure that companies in Scotland can take advantage of these opportunities as …
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Scotland Office
16
Conclusion
Sixth Report - Hydrogen and carbon capt…
Accepted
With the vast renewable energy resources it has available, Scotland can play a vital role in green hydrogen production for the UK and for export to Europe. However, secure hydrogen storage is essential to ensure hydrogen can become central to the energy mix of the UK. Without robust hydrogen storage …
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With the vast renewable energy resources it has available, Scotland can play a vital role in green hydrogen production for the UK and for export to Europe. However, secure hydrogen storage is essential to ensure hydrogen can become central to the energy mix of the UK. Without robust hydrogen storage infrastructure, Scotland will not be able to meet its hydrogen production potential. (Paragraph 89) 48 Hydrogen and carbon capture in Scotland
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Government response AI summary
The UK Government sees hydrogen storage as critical and committed to designing a hydrogen storage business model by 2025, enabled by amendments to the Energy Bill.
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Scotland Office
17
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
We recommend that the UK Government alongside the Scottish Government moves quickly to develop hydrogen storage, to meet increasing demand, help Scotland and the rest of the UK enhance energy security and meet net zero targets.
Government response AI summary
The UK Government sees hydrogen storage, along with transport infrastructure as a critical component, and committed to designing a hydrogen storage business model (HSBM) by 2025.
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Scotland Office
18
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
The UK Minister told us that the UK Government’s preference is for the private sector to lead the development of storage infrastructure. For businesses to lead the way in such a crucial aspect of Scotland and the UK’s net zero and energy security ambitions, a clear set of regulatory conditions …
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The UK Minister told us that the UK Government’s preference is for the private sector to lead the development of storage infrastructure. For businesses to lead the way in such a crucial aspect of Scotland and the UK’s net zero and energy security ambitions, a clear set of regulatory conditions and economic incentives will be required to encourage development at the pace needed. Therefore, we recommend that in response to this report the UK Government establish an action plan to identify and address economic and regulatory barriers for hydrogen storage to ensure that, once large-scale hydrogen production becomes possible, appropriate storage is in place.
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Government response AI summary
The government published a consultation in August 2022 seeking stakeholder views on barriers to investment in both hydrogen transport and storage, and subsequent design options to help unlock private sector investment, as part of their commitment to design a HSBM by 2025; they will provide …
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Scotland Office
19
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
We recommend that the UK Government should examine how storage of low carbon hydrogen could be made a national infrastructure asset as this could help guarantee energy security for the UK. (Paragraph 92) Jobs and skills training
Government response AI summary
The UK Government recognises the potential role for hydrogen storage in providing broader energy security and states that its commitment to designing a hydrogen storage business model will support the development of hydrogen storage infrastructure, and will continue to consider whether further regulatory or other …
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Scotland Office
20
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
Scotland is in a very strong position compared to many other countries wanting to develop their hydrogen industry, in part because it already has a large relevant skills base in the oil and gas sector that has the potential to be redeployed. The work the UK and Scottish Governments have …
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Scotland is in a very strong position compared to many other countries wanting to develop their hydrogen industry, in part because it already has a large relevant skills base in the oil and gas sector that has the potential to be redeployed. The work the UK and Scottish Governments have been doing on skills and jobs for people to work in the hydrogen sector should be applauded, but further progress needs to be made urgently to ensure that Scotland continues to provide vital workers for the low carbon energy industry. The industry needs to take a leading role in working with both governments to identify gaps in the workforce and the skills that are needed as well as deciding how to transition and re-train people.
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Government response AI summary
The government states it's already supporting green jobs, skills and industries through the North Sea Transition Deal and the Integrated People and Skills Strategy, and will continue to work with industry and education providers to understand the skills landscape as set out in the Hydrogen …
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Scotland Office
21
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
We recommend that the cooperative approach between the UK and Scottish Governments on skills training and jobs continues, not least because of the mixture of reserved and devolved competencies when it comes to energy, education and skills. On at least a biannual basis, the UK and Scottish Governments should jointly …
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We recommend that the cooperative approach between the UK and Scottish Governments on skills training and jobs continues, not least because of the mixture of reserved and devolved competencies when it comes to energy, education and skills. On at least a biannual basis, the UK and Scottish Governments should jointly set out work they are undertaking to ensure that colleges, training providers and businesses within the hydrogen and CCUS sectors are able to offer appropriate routes into employment and training, and providing this information should be viewed as a priority. Incorporated into this analysis, both the UK and Scottish Governments should also provide regular updates on progress against their estimated jobs forecasts in the medium term.
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Government response AI summary
The UK Government states it is already supporting green jobs, skills and industries through the North Sea Transition Deal and the Integrated People and Skills Strategy, which was published by OPITO, and that the Hydrogen Sector Development Plan (2022) also covers these issues.
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Scotland Office
22
Recommendation
Sixth Report - Hydrogen and carbon capt…
Accepted
We recommend that the UK and Scottish Governments work in tandem with industry in identifying the jobs and skills gaps in the existing workforce. Industry should work in cooperation with the UK Government to ensure their policies and initiatives are complementary. Industry alongside the Scottish Government should develop and implement …
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We recommend that the UK and Scottish Governments work in tandem with industry in identifying the jobs and skills gaps in the existing workforce. Industry should work in cooperation with the UK Government to ensure their policies and initiatives are complementary. Industry alongside the Scottish Government should develop and implement a clear plan for transition and re-training its workforce– in light of the Scottish Government’s presumption against further oil and gas exploration and no nuclear in Scotland–and this could be supported by organisations such as Hydrogen UK. (Paragraph 107) Hydrogen and carbon capture in Scotland 49 Hydrogen for homes
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Government response AI summary
The UK Government states it is already supporting green jobs, skills and industries through the North Sea Transition Deal and the Integrated People and Skills Strategy, which was published by OPITO, and that the Hydrogen Sector Development Plan (2022) also covers these issues.
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Scotland Office
23
Conclusion
Sixth Report - Hydrogen and carbon capt…
Deferred
We recognise there is a mix of evidence on the role hydrogen can play in the decarbonisation of domestic heating and there is still a substantial amount of work being done that will determine its eventual use. However, in the meantime, the evidence in favour of mandating hydrogen-ready boilers in …
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We recognise there is a mix of evidence on the role hydrogen can play in the decarbonisation of domestic heating and there is still a substantial amount of work being done that will determine its eventual use. However, in the meantime, the evidence in favour of mandating hydrogen-ready boilers in all suitable properties at the earliest opportunity is convincing, no matter what decision is eventually made on the blend of hydrogen in the system, or whether the system becomes a 100% hydrogen gas network. Assurances from the largest four boiler manufacturers indicate that hydrogen-ready boilers will be the same price as standard boilers, removing a key obstacle in rolling them out across UK households. It means millions more properties would be ready and able to switch to hydrogen sooner rather than later and with lower conversion costs, if required, should the UK Government opt for a low carbon hydrogen-based gas network.
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Government response AI summary
The government consulted on mandating hydrogen-ready boilers from 2026 and is currently analysing the responses and will issue the Government response in due course.
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Scotland Office
24
Recommendation
Sixth Report - Hydrogen and carbon capt…
Acknowledged
We recommend that, in anticipation of a decision around the use of hydrogen in heating by 2026, the UK Government should mandate hydrogen-ready boilers for all suitable new or replacement installations as soon as practicable and at least introduce that decision, with clear timescales, into the statute book by the …
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We recommend that, in anticipation of a decision around the use of hydrogen in heating by 2026, the UK Government should mandate hydrogen-ready boilers for all suitable new or replacement installations as soon as practicable and at least introduce that decision, with clear timescales, into the statute book by the end of the next parliamentary session. (Paragraph 117) 50 Hydrogen and carbon capture in Scotland
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Government response AI summary
The Government has consulted on proposals to require that from 2026 all newly installed domestic-scale natural gas boilers be hydrogen-ready, subject to conditions, and is currently analysing responses.
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Scotland Office