Recommendations & Conclusions
11 items
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
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
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
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
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