The noble Viscount is absolutely right. I am a huge advocate of hydrogen precisely because of its role in long-term energy storage in the circumstances that he outlined—when the wind does not blow and the sun does not shine. We were debating whether it has a viable use in home heating. I submit that electrification and heat pumps are a much more efficient way of heating homes.

The noble Viscount is absolutely right. I am a huge advocate of hydrogen precisely because of its role in long-term energy storage in the circumstances that he outlined—when the wind does not blow and the sun does not shine. We were debating whether it has a viable use in home heating. I submit that electrification and heat pumps are a much more efficient way of heating homes.

There was a lot in that question. I agree that there are great potential uses of hydrogen in long-term energy storage, as the noble Viscount just mentioned, and in the decarbonisation of some aspects of rail transport and heavy goods vehicles—particularly for non-road mobile machinery, where there are no real electrification options, and we have a number of successful manufacturers in this country. The original premise of the noble Lord’s question is what the best method of home heating is. All the evidence and reports show that, even if it were technically possible to pipe hydrogen into domestic homes, electrification is a much more efficient option.

There was a lot in that question. I agree that there are great potential uses of hydrogen in long-term energy storage, as the noble Viscount just mentioned, and in the decarbonisation of some aspects of rail transport and heavy goods vehicles—particularly for non-road mobile machinery, where there are no real electrification options, and we have a number of successful manufacturers in this country. The original premise of the noble Lord’s question is what the best method of home heating is. All the evidence and reports show that, even if it were technically possible to pipe hydrogen into domestic homes, electrification is a much more efficient option.

I am sorry to disagree with the noble Baroness, but we are taking action. We let the first 11 hydrogen electrolytic allocation contracts in what is called the HAR1 round last year. The HAR2 round for further electrolytic allocation is happening this year. We have produced business models for the transmission and storage of hydrogen. I disagree with her that there is no place for a hydrogen distribution network in the UK. There absolutely is a case for that —not for home heating but for industrial uses and some of the uses that the noble Lord mentioned. I disagree with her on the fundamentals of this. We are putting these things in place and we are one of the leading nations in Europe on the production and distribution of hydrogen.

I am sorry to disagree with the noble Baroness, but we are taking action. We let the first 11 hydrogen electrolytic allocation contracts in what is called the HAR1 round last year. The HAR2 round for further electrolytic allocation is happening this year. We have produced business models for the transmission and storage of hydrogen. I disagree with her that there is no place for a hydrogen distribution network in the UK. There absolutely is a case for that —not for home heating but for industrial uses and some of the uses that the noble Lord mentioned. I disagree with her on the fundamentals of this. We are putting these things in place and we are one of the leading nations in Europe on the production and distribution of hydrogen.

It was not postponed—it was cancelled. I visited Redcar and met many of the residents and businesses in the town who were concerned. The noble Baroness is right that one of the principal reasons why the trial did not proceed was that the source of green hydrogen, which would have been produced locally to the trial, for various commercial reasons did not go ahead. We also have to take into account public opinion. We always said that this would depend on public acceptability, and it was increasingly obvious that many people—though not all—in the trial area were not prepared for the trial to go ahead.

It was not postponed—it was cancelled. I visited Redcar and met many of the residents and businesses in the town who were concerned. The noble Baroness is right that one of the principal reasons why the trial did not proceed was that the source of green hydrogen, which would have been produced locally to the trial, for various commercial reasons did not go ahead. We also have to take into account public opinion. We always said that this would depend on public acceptability, and it was increasingly obvious that many people—though not all—in the trial area were not prepared for the trial to go ahead.

We have said that blending into the network can still go ahead. It is possible to put hydrogen into the existing gas mains at up to about 20% concentration. We have said that this can go ahead, because it provides an offtake of last resort for the electrolytic hydrogen producers, so that they have a market for it. Existing appliances will work perfectly satisfactorily, and this is a useful first step in rolling out hydrogen production and distribution across the country for all of the commercial and industrial uses that I mentioned.

We have said that blending into the network can still go ahead. It is possible to put hydrogen into the existing gas mains at up to about 20% concentration. We have said that this can go ahead, because it provides an offtake of last resort for the electrolytic hydrogen producers, so that they have a market for it. Existing appliances will work perfectly satisfactorily, and this is a useful first step in rolling out hydrogen production and distribution across the country for all of the commercial and industrial uses that I mentioned.

I am sorry if I have given the noble Lord the wrong impression. We have already taken strategic decisions on the use of hydrogen. We are supporting the production of both electrolytic green and CCUS-enabled blue hydrogen. We are already rolling out the business models for the delivery of commercial-scale use of hydrogen, and we are one of the leading nations in Europe on doing that. The decision in 2026 would be on whether hydrogen has a role in domestic heating. The noble Lord is getting the issues confused.

I am sorry if I have given the noble Lord the wrong impression. We have already taken strategic decisions on the use of hydrogen. We are supporting the production of both electrolytic green and CCUS-enabled blue hydrogen. We are already rolling out the business models for the delivery of commercial-scale use of hydrogen, and we are one of the leading nations in Europe on doing that. The decision in 2026 would be on whether hydrogen has a role in domestic heating. The noble Lord is getting the issues confused.

To ask His Majesty’s Government what assessment they have made of the implications of their decision to cancel the pilot plan for a ‘hydrogen town’.

To ask His Majesty’s Government what assessment they have made of the implications of their decision to cancel the pilot plan for a ‘hydrogen town’.

It is me again, I am afraid.

We have decided not to progress work on a hydrogen town pilot until after a decision in 2026 on any potential role for hydrogen in heating. The Government carefully considered the implications of this decision and the alternative options. Heat pumps and heat networks will be the primary means of decarbonisation for the foreseeable future.

It is me again, I am afraid.

We have decided not to progress work on a hydrogen town pilot until after a decision in 2026 on any potential role for hydrogen in heating. The Government carefully considered the implications of this decision and the alternative options. Heat pumps and heat networks will be the primary means of decarbonisation for the foreseeable future.

I would be very interested in speaking to the noble Baroness’s contact in heat batteries; I have also met a number of heat battery manufacturers. For those who have not come across it, it is a great growth industry in the UK and a fantastic technology. There is one particularly good company up in Scotland that I visited recently. I am not sure what extra clarification we could provide that would help her contact. We have said—indeed, I said it in my Answer—that heat pumps, heat networks and electrification will be by far the vast majority of the decarbonisation of home heating in the UK. If hydrogen plays any role at all, it will be only a very tiny one.

I would be very interested in speaking to the noble Baroness’s contact in heat batteries; I have also met a number of heat battery manufacturers. For those who have not come across it, it is a great growth industry in the UK and a fantastic technology. There is one particularly good company up in Scotland that I visited recently. I am not sure what extra clarification we could provide that would help her contact. We have said—indeed, I said it in my Answer—that heat pumps, heat networks and electrification will be by far the vast majority of the decarbonisation of home heating in the UK. If hydrogen plays any role at all, it will be only a very tiny one.

I hesitate to disagree with the noble Lord, but I think I will on this occasion. I would be interested to know where on the continent hydrogen is being rolled out, as he referred to. I am aware of one or two experimental schemes, but no widescale rollout. There is no question that it could work technically—indeed, two homes have been built in Gateshead as an experiment by Northern Gas Networks that currently are heated by hydrogen boilers and hydrogen hobs. Technically, it can work, although there are safety implications that we need to look at. The question we need to be answering is whether this is an efficient use of the country’s energy resources.

I hesitate to disagree with the noble Lord, but I think I will on this occasion. I would be interested to know where on the continent hydrogen is being rolled out, as he referred to. I am aware of one or two experimental schemes, but no widescale rollout. There is no question that it could work technically—indeed, two homes have been built in Gateshead as an experiment by Northern Gas Networks that currently are heated by hydrogen boilers and hydrogen hobs. Technically, it can work, although there are safety implications that we need to look at. The question we need to be answering is whether this is an efficient use of the country’s energy resources.

To ask His Majesty's Government what progress they are making in establishing a hydrogen certification scheme for imported and exported hydrogen.

To ask His Majesty's Government what progress they are making in establishing a hydrogen certification scheme for imported and exported hydrogen.

To ask His Majesty's Government, following the publication of the British energy security strategy policy paper on 7 April 2022, what progress they are making in their ambition for the UK to achieve up to 10 gigawatts of low carbon hydrogen production capacity by 2030, with at least half of...

To ask His Majesty's Government, following the publication of the British energy security strategy policy paper on 7 April 2022, what progress they are making in their ambition for the UK to achieve up to 10 gigawatts of low carbon hydrogen production capacity by 2030, with at least half of...

To ask His Majesty's Government what funding assistance they are providing for market structures and mechanisms for supporting increased hydrogen production.

To ask His Majesty's Government what funding assistance they are providing for market structures and mechanisms for supporting increased hydrogen production.

To ask His Majesty’s Government what assessment they have made of the finding of the National Infrastructure Commission that there is no public policy case for hydrogen heating, set out in the Second National Infrastructure Assessment published in October.

To ask His Majesty’s Government what assessment they have made of the finding of the National Infrastructure Commission that there is no public policy case for hydrogen heating, set out in the Second National Infrastructure Assessment published in October.

My Lords, heat pumps and heat networks will be the primary means of decarbonising heat for the foreseeable future, and will play an important role in all 2050 scenarios. Of course, we welcome the NIC’s input, are carefully considering the analysis and will respond to the report in due course.

My Lords, heat pumps and heat networks will be the primary means of decarbonising heat for the foreseeable future, and will play an important role in all 2050 scenarios. Of course, we welcome the NIC’s input, are carefully considering the analysis and will respond to the report in due course.

With respect to the noble Baroness’s first question, I think she needs to read the letter from the leader of Redcar Council more carefully. I do not think it supports the analysis she gave. Nevertheless, I have said on numerous occasions that no hydrogen village trial will take place without strong support from local residents. On the noble Baroness’s second question, yes, hydrogen does have a high global warming potential, which illustrates the importance of not allowing it to leak at all.

With respect to the noble Baroness’s first question, I think she needs to read the letter from the leader of Redcar Council more carefully. I do not think it supports the analysis she gave. Nevertheless, I have said on numerous occasions that no hydrogen village trial will take place without strong support from local residents. On the noble Baroness’s second question, yes, hydrogen does have a high global warming potential, which illustrates the importance of not allowing it to leak at all.

Well, I did not say that we necessarily welcomed the NIC’s report; I said that we were studying it, and of course it will provide a useful backdrop to and illustration of the decisions that we will make. To go back to the point of the noble Baroness, Lady Sheehan, we will announce a decision on the trial in Redcar very shortly. I think the noble Lord makes a good point; where does all the extra electricity come from? Of course, there is detailed scenario mapping done on that; we have very exciting and ambitious plans for lots more offshore wind, lots of solar development and lots of nuclear development—so there will be ample supplies of electricity available.

Well, I did not say that we necessarily welcomed the NIC’s report; I said that we were studying it, and of course it will provide a useful backdrop to and illustration of the decisions that we will make. To go back to the point of the noble Baroness, Lady Sheehan, we will announce a decision on the trial in Redcar very shortly. I think the noble Lord makes a good point; where does all the extra electricity come from? Of course, there is detailed scenario mapping done on that; we have very exciting and ambitious plans for lots more offshore wind, lots of solar development and lots of nuclear development—so there will be ample supplies of electricity available.

I agree with the noble Lord that energy efficiency and insulation are extremely important. That is why we are spending £6.5 billion over this Parliament on insulation, energy efficiency and clean heat measures; but, of course, there is always a lot more to do and we will have more to say on that shortly.

I agree with the noble Lord that energy efficiency and insulation are extremely important. That is why we are spending £6.5 billion over this Parliament on insulation, energy efficiency and clean heat measures; but, of course, there is always a lot more to do and we will have more to say on that shortly.

I do not think my noble friend is correct about attitudes in Germany. The latest information I have is that 10 homes in Germany—no more than that—are subject to the trial. The issue of blending hydrogen into the gas network is of course a separate issue, and that too is something on which we will have more to say shortly.

I do not think my noble friend is correct about attitudes in Germany. The latest information I have is that 10 homes in Germany—no more than that—are subject to the trial. The issue of blending hydrogen into the gas network is of course a separate issue, and that too is something on which we will have more to say shortly.

The noble Baroness is absolutely correct. We have set out in great detail what the transition plan looks like. As I said in my Answer, electrification—heat networks in particular—will play a very important role in the decarbonisation of heat.

The noble Baroness is absolutely correct. We have set out in great detail what the transition plan looks like. As I said in my Answer, electrification—heat networks in particular—will play a very important role in the decarbonisation of heat.