The Scottish Affairs Committee today (March 10) warned that the UK will fail to meet its Net Zero targets and transition away from fossil fuels unless carbon capture and hydrogen are rolled out at scale.
A report by the group said that Scotland could hold the key to hydrogen and carbon capture technologies being rolled out across the country due to its renewable energy potential and skills from the oil and gas sector.
However, the Committee said despite ambitious targets set by both the UK and Scottish Governments, “policy progress appears to be lacking,” adding, “there does not appear to be a sense of urgency in the numerous areas requiring attention before hydrogen can be rolled out.”
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Those areas include decisions on hydrogen production, planning decisions, storage and transportation, according to the group, which called for interim targets to assess progress and a timeline of when key milestones will be met.
Additionally, the report called delays to decision making around the Track 2 carbon, capture, usage, and storage (CCUS) cluster sequencing “disappointing,” saying it puts projects such as the Acorn CCS and hydrogen project at risk.
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The project is hoped to provide critical infrastructure to help industries and homes across Scotland and the UK to decarbonise, with plans to take North Sea natural gas and reform it into clean-burning hydrogen, with associated carbon dioxide emissions captured and stored under the sea.
UK Chancellor, Jeremy Hunt is set to present his first budget next Wednesday (March 15), setting out the Government’s plan for tax and spending policy, which the Committee said provides, “the ideal opportunity for the UK Government to outline the funding details for Acorn and the rest of the Scottish Cluster to progress at pace.”
Pete Wishart MP, Scottish Affairs Committee Chair, said, hydrogen potential is “clearly there,” and that committee is impressed with projects in Scotland.
However, Wishart added, that the twin-track approach leaves “gaping policy holes: none more so than around carbon capture,” adding his disappointment that the Acorn project has “been put on the backburner,” stressing the need for clarity in next week’s Budget.
“If the policy gaps are addressed, and the UK Government jumps on the opportunities in Scotland, we could be a major exporter of clean energy with thriving clusters and local economies,” said Wishart.
Last December (2022), the Net Zero Technology Centre (NZTC) and ERM launched a project to establish a ‘hydrogen highway’ from Scotland to Rotterdam, using liquid organic hydrogen carriers (LOHC) to export hydrogen at scale.
Read more: Scotland to Rotterdam: Plans for LOHC ‘Hydrogen Highway’ announced
At the UK Hydrogen and Fuel Cell Conference (UKHFCC) on Tuesday (March 7), UK Hydrogen Champion, Jane Toogood, Sector Chief Executive at Johnson Matthey, told attendees that the UK had not lost its hydrogen advantage, however stressed it could not wait.
Read more: No time to waste: UKHFCC 2023
Toogood highlighted the need to kickstart hydrogen investments, saying, “pace and certainty are key,” adding that the UK must develop its hydrogen production business model and stick to it. “We need a proper 2030 roadmap that can invite and provide investors with the clarity that they need to plan an investment strategy,” the UK Hydrogen Champion said.
Addressing the conference via video link, Stephanie Murphey, Director of Hydrogen at the UK Department of Energy Security at Net Zero, stressed that the Government remains committed to developing the hydrogen industry, saying, “I can assure you that the UK Government continues to see hydrogen as a key priority.”