Rebecca Evans, 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.