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 …
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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
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
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
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
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