, Cabinet Secretary for
Economy, Energy and Planning: I am today publishing the Welsh
Government's consultation on its preferred policy position for
hydrogen. The Welsh Government's vision for the future of
energy generation and industry is one in which sustainable
industries are retained in Wales and continue to generate
high-quality jobs and other benefits for the communities in which
they operate. Decarbonising our energy system presents
enormous challenges, but also significant economic and well-being
opportunities. In providing additional clarity on our
hydrogen policy and inviting industry to explore innovative and
flexible methods for achieving the low carbon hydrogen standard,
we hope to exploit all of the benefit that hydrogen can offer
Wales.
Hydrogen has the potential to play a significant role in
achieving our stretching targets for greenhouse gas
emissions to be reduced to net zero by 2050. However, the
deployment of hydrogen must make a clear and sustained
contribution to decarbonisation, a just transition for all, and
promote economic prosperity for Wales. To achieve this
objective, we have developed a proposed policy on hydrogen,
building on the statement to Senedd on 15 October 2024.
The appropriately targeted use of hydrogen is an important
technology in our efforts to reduce greenhouse gas emissions
across energy supply, transport and industry. Hydrogen may
provide one of the few options to decarbonise some of the high
energy users in industry and transport.
However, the consultation recognises the carbon intensity of
hydrogen can vary considerably dependent on its production
process and feedstock. Therefore, our proposed policy
highlights the vital importance of decarbonisation in decision
making. Our policy objective is to support the development
of emerging hydrogen infrastructure and applications which
facilitate a swift and irreversible contribution to
decarbonisation, while also meeting our wider well-being
objectives. The policy encourages low carbon hydrogen,
rather than prescribing specific production methods. This
gives industry the freedom to be innovative when developing
proposals.
Our preferred hydrogen policy has been drafted to provide clarity
for industry, developers, investors, in addition to relevant
public authorities in Wales, by encouraging investment in
hydrogen projects clearly supporting sustainable
decarbonisation. The consultation seeks to ensure we make
the right decisions in the near term to enable a longer-term
transition from fossil fuel consumption and prosperity for Wales.
This hydrogen consultation coincides with the recent launch of
the Carbon Capture Storage and Utilisation consultation as in
many cases the technologies will be deployed together to minimise
greenhouse gas emissions.
I invite all interested parties across our industries, our
universities, other public and private sector bodies, and the
general public, to take part in our consultation on this
important topic and help shape the future of emissions reduction
in Wales.
