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.
Government response. The UK Government agrees that both UK and Scottish Government have clear strategies and ambitions for hydrogen and engage regularly on policy developments.
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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 …
Government response. The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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
Government response. 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 …
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 …
Government response. 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.
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. 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.
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 …
Government response. 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 …
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. 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 …
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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.
Scotland Office