Contribution
Thank you, Mr Betts; it is a pleasure to serve with you in the Chair. I congratulate the hon. Member for Rushcliffe (James Naish) on securing the debate—I supported the application—and the hon. Member for Worcester (Tom Collins) on introducing it so competently.
The UK has established strong foundations for a domestic hydrogen industry, which already contributes £8.4 billion to our economy. Improving hydrogen supply chains could benefit the economy by £18 billion in gross value added and 60,000 new highly skilled jobs by 2050, according to research from Hydrogen UK. Sixty thousand new jobs and £18 billion in gross value added for our economy are not something to ignore.
Sustainable, or green, hydrogen has the potential to drive job creation, economic growth and decarbonisation across sectors currently reliant on high-carbon fuels, and particularly the aviation sector. There is enormous potential for hydrogen in aviation. According to the International Energy Agency, 65 million tonnes per year of low-emission hydrogen must be produced globally by 2030 to meet our net zero targets. Domestically, Hydrogen UK has made it clear that we need 10 GW of hydrogen production capacity by 2030, alongside urgent investment in storage, to more than treble our capacity between 2030 and 2035. We need this infrastructure to reach a final investment decision.
A significant portion of the UK’s hydrogen storage will be for aviation. On a recent visit just north of my constituency, I saw the extraordinary work of ZeroAvia. Its business model is currently built on retrofitting relatively small aircraft, but it has the ambition to expand to medium-sized aircraft. It is absolutely fascinating to see what ZeroAvia has achieved. Backed by the likes of Airbus, British Airways and the UK Infrastructure Bank, ZeroAvia has already achieved world-first flight demonstrations of hydrogen electric engines. It has raised more than $250 million and employs more than 200 people.
ZeroAvia’s hydrogen electric engines are not a distant dream. Airlines are already pre-ordering more than 3,000 units, with commitments from American Airlines, United Airlines and UK operators. These engines can cut aviation’s climate impact by more than 90%, with only water as a by-product. Again, the real beauty of this is that ZeroAvia is retrofitting planes, so we do not have to build new ones. That in itself is an emission reduction. Of all modes of transport, aviation is perhaps the best suited to hydrogen. It is energy-intensive and weight-sensitive, making hydrogen’s high-energy density and efficiency critical. Unlike road or rail, aviation has more limited alternatives.
Hydrogen is not just desirable, it is essential. But we can achieve these things only with better storage solutions, as the hon. Member for Worcester mentioned, lower operational costs and a secure, consistent supply. Producing green hydrogen is extremely energy-intensive and requires a large amount of renewable energy. On average, producing 1 kg of hydrogen consumes around 50 kWh of electricity. This high energy demand means that to produce more green hydrogen, we must drastically accelerate our renewable energy capacity.
That is why I am a little concerned that some renewable energy projects are being pushed out of the grid connections queue, because they are not seen as immediately necessary. That seems a short-sighted approach, and it could hinder our ability to scale green hydrogen production. What we should be doing is oversupplying renewables so that we have a surplus that allows us to not only produce enough green hydrogen but potentially become a net exporter of renewable energy across Europe.
The hon. Member for Worcester also mentioned the need for stronger regulation for the wider applications of hydrogen. The Government must set clear standards for sectors such as domestic heating, where hydrogen boilers still lack the necessary regulation for home use. I know that the Government are a little slow on hydrogen in home heating.