Written questions by Malthouse.

Pursuant to the Answer of 12 March 2025 to Question 35323 on Alternative Fuels: Ammonia, whether he has considered using imported ammonia to expand the domestic production of hydrogen (a) through Hydrogen Allocation Round 3 and (b) more broadly in the development of the hydrogen market in the period to 2030.

The Government’s immediate priority is supporting primary hydrogen production methods in the UK, which will help us to develop supply chains and bring down the costs of hydrogen production in the UK. Utilising ammonia cracking to import hydrogen does not meet these criteria and so ammonia cracking will not be eligible for HAR3. We will continue to consider the potential future role for ammonia cracking in the UK hydrogen economy as we recognise that, in the longer term, imported hydrogen could play a role as part of a diverse supply mix.

Pursuant to the Answers of 12 March 2025 to Questions (a) 35320, (b) 35322 and (c) 35324, what assessment he has made of the potential merits of working with UK-based manufacturers of ammonia cracking technologies.

Ammonia cracking is a nascent technology that the Government has supported through the Net Zero Innovation Portfolio, which aims to accelerate the commercialisation of innovative, low-carbon technologies. As the sector develops, government will work with UK companies developing ammonia cracking technologies to understand its potential applications.

Pursuant to the Answers of 12 March 2025 to Questions (a) 35320, (b) 35322 and (c) 35324, what was the date of the most recent official meeting between ministers from his Department and ministers from (a) the Department for Transport and (b) the Department for Business and Trade to discuss policies for developing the UK ammonia market.

There is regular engagement between DESNZ, DfT and DBT to discuss a range of policy issues. Officials are working closely with other departments to understand the potential role of ammonia in the UK’s future low carbon economy and how it should be considered within our policy frameworks. Ministers from DESNZ are in regular communication with ministers from DfT & DBT on all issues.

Pursuant to the Answers of 12 March 2025 Questions (a) 35320 and (b) 35322 on Alternative Fuels: Ammonia, whether he has considered domestic ammonia storage for on-demand ammonia cracking and deployment, in the context of (i) his Department’s assessment of the potential role of low carbon ammonia in a diversified energy mix and (ii) UK energy security.

Ammonia cracking is a nascent technology that the Government has previously supported through the Net Zero Innovation Portfolio. As set out in the Market Engagement document, the early focus of the Hydrogen Storage Business Model will be geological storage. The use of ammonia as a form of chemical storage for cracking to hydrogen was assessed to have low technology readiness. Government continues to review technological developments and may make changes to HSBM eligibility when appropriate to do so.

Whether his Department has made an assessment of the potential merits of classifying ammonia as a fuel vector.

Officials are working closely with other departments, such as the Department for Transport, to understand the potential role of ammonia in the UK’s future low carbon economy and how it should be considered within the UK’s policy frameworks. Low carbon ammonia, as a derivative of low carbon hydrogen, could have the potential to play a role in reaching net zero where it could be used as a chemical feedstock or burned as a fuel in transport or power stations, and could also be stored in large quantities. The Department for Transport’s (DfT) 2019 Clean Maritime Plan sets out the significant role that low carbon ammonia and methanol may play in decarbonising the maritime sector.

Whether he plans to allow projects that use ammonia cracking technology to be eligible in future Hydrogen Allocation Rounds.

In line with our current priorities, the Hydrogen Production Business Model is intended to support primary methods of hydrogen production, such as electrolytic and CCUS-enabled production, in the UK. Ammonia cracking would not create any new hydrogen (given the ammonia itself is produced from hydrogen) and so we do not consider it to meet these criteria. We are currently developing our approach to future Hydrogen Allocation Rounds (HARs), including the third Hydrogen Allocation Round (HAR3), to ensure they deliver on the Government’s priorities. We will seek feedback on the proposed design and delivery of HAR3 through a market engagement exercise, similar to the approach taken for HAR2. Further details will be provided in due course.

What estimate he has made of the size of the global green ammonia market; and what assessment he has made of the potential implications for his policies of steps other nations are taking to support the development of green ammonia projects.

The current green ammonia market is minimal, but it is expected to grow as electrolytic hydrogen production scales up. The International Energy Agency (IEA) estimate that 92Mt of green ammonia (about 40% of total ammonia production) will be produced globally each year by 2050 in their Net Zero Scenario. Ammonia is also expected to play a role in hydrogen trade, with the International Renewable Energy Agency (IRENA) estimating that 690Mt/yr of ammonia could be utilised for transporting hydrogen in their 2050 Net Zero Scenario. Officials are working closely with other departments, such as the Department for Transport, to understand potential demand for low carbon ammonia in the UK, where appropriate supply may come from, and whether any Government intervention may be required.

What steps his Department is taking to develop a green ammonia market in the UK.

Low carbon ammonia could play a role in reaching net zero as part of a diversified energy mix. Officials are working closely with other departments, such as the Department for Transport, to understand potential demand for low carbon ammonia, where appropriate supply may come from, and whether any Government intervention may be required.

What assessment he has made of the potential merits of ammonia as a hydrogen carrier to support industrial decarbonisation.

The Government continues to review the range of potential hydrogen carriers and their role in supporting the long-distance transport and trade of hydrogen, including its contribution to industrial decarbonisation. These potential options include ammonia, methanol, liquid organic hydrogen carriers (LOHCs), and liquid hydrogen. Our ongoing assessment highlights the need for further research, demonstration and learning from deployment in order to optimise these carrier options, whilst ensuring environmental and safety concerns have been fully considered and mitigated.