Hydrogen and carbon capture in Scotland

Scottish Affairs Committee Closed Inquiry
Opened: 6 Jan 2022 Closed: 23 Nov 2023 Parliament page
The Committee will be inquiring into hydrogen and carbon capture in Scotland as a follow up to our renewable energy in Scotland inquiry. We want to hear about Scotland's role in hydrogen production and including opportunities for carbon capture utilisation and storage. The focus will be: The UK Government's Hydrogen … Read more
18 Recommendations
6 Conclusions
1 Report
5 Oral sessions
4 Letters
7 Events
Activity timeline 18 events
21 Nov
2023
Correspondence
8 Jun
2023
Report published
8 Jun
2023
Correspondence
25 Apr
2023
Correspondence
10 Mar
2023
Report published
7 Mar
2023
Correspondence
16 Jan
2023
Oral evidence
16 Jan
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
12 Sep
2022
Oral evidence
12 Sep
2022
Formal meeting (oral evidence session) · To be confirmed
18 Jul
2022
Oral evidence
18 Jul
2022
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
Oral evidence sessions 5 sessions
16 Jan 2023
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Alison Conboy · Department for Business, Energy and Industrial Strategy Michael Matheson MSP · Scottish Government Rt Hon Graham Stuart MP · Department for Business, Energy and Industrial Strategy Stefanie Murphy · Department for Business, Energy and Industrial Strategy Stuart McKay · Scottish Government Susan Stirling · Scottish Government
12 Sep 2022
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18 Jul 2022
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Barry Carruthers · ScottishPower Oonagh O’Grady · SSE Professor Andy Sloan FRSE · Royal Society of Edinburgh Sarah Potts · Storegga
4 Jul 2022
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Bethan Vasey · Shell UK Upstream Clare Jackson · Hydrogen UK Louise Kingham CBE · BP plc Will Webster · Offshore Energies UK
16 May 2022
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Angus McIntosh · SGN David Wallace · Offshore Renewable Energy Catapult Dr Jillian Couto-Phoenix · National Manufacturing Institute Scotland Dr Nigel Holmes · Scottish Hydrogen and Fuel Cell Association
Title HC No. Published Items Response
Sixth Report - Hydrogen and carbon capture in Scotland HC 83 10 Mar 2023 24 Responded
Recommendations & Conclusions
24 results
1 Conclusion Acknowledged
Sixth Report - Hydrogen and carbon…
The UK and Scottish Governments have clear strategies and appropriate aspirations for hydrogen, with significant...
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. Read more
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.
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2 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
The UK and Scottish Governments have different net zero target dates of 2050 and 2045...
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. … Read more
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 Board.
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3 Recommendation Accepted in Part
Sixth Report - Hydrogen and carbon…
The UK and Scottish Governments arrived at their respective 10GW and 5GW by 2030 low...
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 … Read more
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 scaled up over the coming decade, to be published by the end of the year; however, they stopped short of agreeing to formally align targets or timelines with the Scottish Government.
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4 Recommendation Accepted in Part
Sixth Report - Hydrogen and carbon…
We conclude that both the UK and Scottish Governments’ hydrogen strategies require interim targets to...
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, … Read more
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 interim targets or a timeline of key decisions for projects.
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5 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
We are concerned that the Scottish Government does not see more potential in Green Freeports...
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 … Read more
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.
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6 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
We acknowledge the concerns raised by our witnesses around slippage in timings for hydrogen projects.
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 … Read more
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 hydrogen production can be scaled up, to be published by the end of the year.
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7 Recommendation Deferred
Sixth Report - Hydrogen and carbon…
Better training in the hydrogen project consenting process for both local authorities and private organisations...
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 … Read more
Government Response
The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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8 Recommendation Deferred
Sixth Report - Hydrogen and carbon…
We recommend that, in order to speed up the planning process and make it more...
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 … Read more
Government Response
The recommendation is for the Scottish Government on devolved matters, so the UK government cannot comment.
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9 Conclusion Accepted
Sixth Report - Hydrogen and carbon…
Scotland and the rest of the UK will not be able to deliver on their...
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 … Read more
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 allocated.
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10 Conclusion Accepted
Sixth Report - Hydrogen and carbon…
Delays to decision making around cluster sequencing and the Acorn Project are disappointing.
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 … Read more
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 allocated.
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11 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
We recommend that the UK Government accelerates the deployment of carbon capture and storage in...
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 … Read more
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 allocated.
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12 Conclusion Acknowledged
Sixth Report - Hydrogen and carbon…
The evidence we have received demonstrates that there is vast potential for the export of...
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 … Read more
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.
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13 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
We recommend that the UK and Scottish Governments work more closely to ensure the achievability...
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 … Read more
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 wider hydrogen industry, and the Scottish Government while developing investment profiling work.
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14 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
Furthermore, we recommend that the UK Government publish modelling to quantify in more detail the...
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 … Read more
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.
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15 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
We recommend that the UK Government highlight its potential for export to overseas markets immediately.
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 … Read more
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 advantage of these opportunities as they develop and grow.
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16 Conclusion Accepted
Sixth Report - Hydrogen and carbon…
With the vast renewable energy resources it has available, Scotland can play a vital role...
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 … Read more
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.
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17 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
We recommend that the UK Government alongside the Scottish Government moves quickly to develop hydrogen...
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.
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18 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
The UK Minister told us that the UK Government’s preference is for the private sector...
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 … Read more
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 by 2025; they will provide a government response by the end of Q2 2023.
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19 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
We recommend that the UK Government should examine how storage of low carbon hydrogen could...
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 whether further regulatory or other interventions are required.
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20 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
Scotland is in a very strong position compared to many other countries wanting to develop...
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 … Read more
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 set out in the Hydrogen Sector Development Plan.
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21 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
We recommend that the cooperative approach between the UK and Scottish Governments on skills training...
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 … Read more
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 covers these issues.
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22 Recommendation Accepted
Sixth Report - Hydrogen and carbon…
We recommend that the UK and Scottish Governments work in tandem with industry in identifying...
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 … Read more
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 covers these issues.
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23 Conclusion Deferred
Sixth Report - Hydrogen and carbon…
We recognise there is a mix of evidence on the role hydrogen can play in...
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 … Read more
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.
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24 Recommendation Acknowledged
Sixth Report - Hydrogen and carbon…
We recommend that, in anticipation of a decision around the use of hydrogen in heating...
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 … Read more
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.
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Government Response AI assessment · 24 of 18 classified
Accepted 11
Accepted in Part 2
Acknowledged 8
Deferred 3
Total 18 recs + 6 conclusions
Correspondence 4 letters
21 Nov 2023 To committee Letter from Neil Gray MSP, Cabinet Secretary for Wellbeing Economy, Fair Work and Energy at Scottish Government on an update on Scotland’s renewables and wind power potential, dated 14 November 2023.
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8 Jun 2023 To committee Letter from the Rt Hon Grant Shapps MP, Secretary of State for Energy Security and Net Zero accompanying the Government’s response to the Hydrogen and Carbon Capture report.
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25 Apr 2023 To committee Letter from Rt Hon Graham Stuart MP, Minister of State for Energy Security & Net Zero on Hydrogen and carbon capture in Scotland follow-up on 16 January 2023, dated 14 April 2023
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7 Mar 2023 Correspondence with Michael Matheson MSP, Cabinet Secretary for Net Zero, Energy and Transport at Scottish Government on follow up to hydrogen and carbon capture in Scotland on 16 January 2023, dated 23 January and 3 March 2023.
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