Written questions by Jameson.

What assessment his Department has made of the potential impact of the hydrogen technology manufacturing sector on (a) investment to the UK and (b) the growth in good jobs.

The hydrogen sector is nascent but is expected to grow significantly; the global hydrogen market could exceed $1 trillion by 2050, with the UK well positioned to capture a substantial share. We intend to publish a revised Hydrogen Strategy which will highlight the opportunities available to UK hydrogen technology manufacturers and set out plans to optimise the job creation and economic benefits delivered by the UK hydrogen economy. We will continue to engage with stakeholders across the hydrogen value chain; working together with industry and unions to identify actions that support the skills and workforce needs of the UK’s future low carbon hydrogen economy.

When he plans to publish the consultation on the expansion of the Clean Industry Bonus to the hydrogen sector.

As set out in the Clean Energy Industries Sector Plan, we are considering expanding the Clean Industry Bonus to hydrogen and will consult on any proposals. We are currently developing a new Hydrogen Strategy and will provide an update on this in due course. In addition to considering the Clean Industry Bonus, we have a strong offer for domestic manufacturing including support from our Public Finance Institutions and deployment certainty through Hydrogen Allocation Rounds (HARs). Additionally, we welcome the industry-led voluntary ambition of 50% UK local content for hydrogen across the value chain from 2030.

What steps he is taking through (a) regulatory reform and (b) market incentives to support the growth of the hydrogen technology manufacturing sector.

The UK is optimally positioned to develop a thriving hydrogen economy, with many UK companies at the forefront of hydrogen technology advancement. The Government has announced a public finance offer for clean energy industries, to crowd private investment into sustainable UK supply chains, including in the hydrogen sector. This includes a new £1 billion Clean Energy Supply chain fund aligned with the Clean Energy Industries Sector Plan; £5.8 billion for the National Wealth Fund to invest in industries including low carbon hydrogen across this Parliament; and a £4 billion British Business Bank Industrial Strategy Growth Capital scale up and start up financing package.

What steps he is taking to encourage (a) innovation and (b) research and development in the hydrogen technology manufacturing sector.

The Department has allocated around £170 million from the £1bn Net Zero Innovation Portfolio to encourage hydrogen R&D, including £60m for Low Carbon Hydrogen Supply 2 and £31m for H2BECCS, to support production, storage, transport, and negative-emission technologies associated with hydrogen. The UK is engaging internationally to accelerate hydrogen research and innovation, for example, co-chairing the Clean Hydrogen Mission and participating in the International Energy Agency Hydrogen Technology Collaboration Programme.

What data his Department holds on the number of jobs (a) related and (b) dependent on the net zero transition in South Yorkshire; and if he will make an estimate of how much private investment this work attracts to South Yorkshire.

The net zero transition is the economic opportunity of the century—supporting hundreds of thousands of good quality jobs across the UK, including in South Yorkshire. The UK has made significant progress in attracting investment into green sectors. According to analysis by the CBI, the net zero sector is growing three times faster than the overall UK economy and the GVA of the net zero economy grew by 10% in 2024. Around the 2024 International Investment Summit £34.8bn of private investment into low carbon sectors was announced. Government also supports local areas to attract investment – including funding the North East and Yorkshire Net Zero Hub.

What steps he is taking to support the growth of community energy projects.

Community energy will play a pivotal role in our 2030 Clean Power Mission. Through Great British Energy’s Local Power Plan, we will partner with and provide funding to, community groups, local authorities, and others, to develop renewable energy projects across the country, delivering up to 8 GW of cleaner power.