Written question WQ86058

Hydrogen will have a role to play in decarbonising the economy in Wales supporting the delivery of our net zero targets. It may provide one of the few ways to decarbonise heavy industry through fuel switching, and to reduce emissions in hard-to-abate modes of transportation, notably in heavy goods vehicles, aviation and shipping. There is considerable potential to use hydrogen as a storage medium for renewable energy, in particular if it were possible to capture excess energy production. It may also have a role as a replacement for natural gas in heating solutions.

Uncertainties remain over the economic sectors in which hydrogen will play the greatest role, and the overall scale of its application in the longer term. We are working with stakeholders to build the evidence base. Cross-border engagement is also important to understand the landscape and capture benefits to Wales. In the meantime, we are supporting a range of innovative hydrogen projects in Wales. Since 2021 we have invested £1.21m in a range of projects with further investments scheduled this year.

Currently, Phase 2 of our Hydrogen Business Research & Innovation for Decarbonisation Small Business Research Initiative is building on strong research and development work and outcomes accomplished in projects during Phase 1 of this unique innovation programme. Our funding is supporting objectives identified by the Wales Hydrogen Pathway report and enabling the successful deployment of hydrogen across the Welsh economy by businesses and the public sector.