To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to help ensure that industry in Scotland has access to (a) carbon capture and storage and (b) hydrogen production infrastructure required to meet Scottish and UK decarbonisation targets by 2045 and 2050.
2 June 2021
Last month, Government accepted the Committee on Climate Change's Carbon Budget 6 recommendation; this is a significant step in the UK's global climate leadership and CCUS and hydrogen will be critical to meeting these important commitments.
In May this year, the Department for Business, Energy and Industrial Strategy set out the details of the Carbon Capture, Usage and Storage (CCUS) Cluster Sequencing Process. Through this process, government will look to identify at least two CCUS clusters whose readiness suggests they are most naturally suited to deployment in the mid-2020s, as part of our efforts to identify and support a logical sequence of deployment for CCUS projects in the UK. Projects within the clusters will have the first opportunity to be considered to receive any necessary support under the government’s CCUS Programme including access to the £1bn CCS Infrastructure Fund, business models for Transport & Storage, power, industrial carbon capture and low carbon hydrogen. Further details on the revenue mechanisms to bring through private sector investment via these business models will be set out later this year.
We will continue to engage with each of the devolved administrations to develop our approach the delivery of CCUS across the UK. In order to facilitate this work, we continue to be open to any CCUS projects across the UK identifying themselves to us.
The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen production. Our twin track approach will drive cost effective supply volumes in the 2020s in line with our 2030 ambition, whilst scaling up green hydrogen. This ambition will be supported by a range of measures, including a UK wide £240 million Net Zero Hydrogen Fund, and our hydrogen business model. We will be consulting shortly on these measures, alongside the publication of the Hydrogen Strategy. We are working closely with the Devolved Administrations, including the Scottish Government, to help realise the economic and decarbonisation benefits that a UK hydrogen economy will bring.
We have also supported the development and deployment of projects within Scotland’s industrial cluster that will deliver low carbon technologies and enabling infrastructure. Through the Industrial Decarbonisation Challenge, Scotland’s Net Zero Infrastructure Programme (SNZI) received £31.3m in March this year from the Industrial Strategy Challenge Fund.