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1203663

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Hydrogen: Alternative Fuels
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what research his Department has undertaken on the technical and regulatory requirements of replacing natural gas with hydrogen to help the UK meet its decarbonisation targets.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59330
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>Hydrogen is one of a number of options with the potential to play an important role in decarbonising heat, including heat networks, heat pumps, hydrogen and biogas.</p><p> </p><p>Further work is needed to assess the safety and feasibility case and better understand the costs and benefits of using hydrogen in place of methane in the gas grid. We are working with industry to define and take forward a full programme of work to achieve this.</p><p> </p><p>The Government is also currently investing up to £121m in a range of innovation programmes to explore and develop the potential of low carbon hydrogen for end uses sectors. This includes £25m on the Hy4Heat programme which is seeking to investigate if it is technically possible and safe to replace methane with hydrogen in appliances for residential and commercial buildings and evaluate the likely costs and performance.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:40:49 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203664

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Hydrogen: Boilers
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department’s policy is on mandating hydrogen ready boilers.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59331
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>Hydrogen could play a key role in eliminating our contribution to climate change by 2050 and is one of the options being explored to decarbonise heat in the UK alongside heat pumps, heat networks and biogas. Further work is required to fully test and assess the potential of hydrogen as an option for decarbonising heating.</p><p> </p><p>Prototype ‘hydrogen-ready boilers’ are being developed under the £25m BEIS Hy4Heat programme. This programme is seeking to investigate if it is technically possible and safe to replace methane with hydrogen in appliances for residential and commercial buildings and evaluate the likely costs and performance. The programme is due to be completed in 2021, and the Department will be reviewing the outputs from this technical work as it progresses.</p><p> </p><p>On 12 June the Department published a Call for Evidence on Energy-related Products. This consultation invites views on how to maximise the energy savings potential of boilers and alternative heating systems, and if this would help bring to market low-carbon heating technologies including hydrogen.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:42:56 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203665

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Natural Gas: Carbon Emissions
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department’s policy is on hydrogen and biomethane blending with natural gas.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59332
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>Biomethane is currently injected into the gas grid, supported in part by the Renewable Heat Incentive. The Government is currently consulting on the creation of a Green Gas Support Scheme to increase the amount of biomethane in the grid.</p><p> </p><p>Blending low carbon hydrogen with natural gas has the potential to lower carbon emissions. The HyDeploy project has been commissioned by Gas Network Operators to investigate the option of blending up to 20% hydrogen with natural gas in the gas grid. The Health and Safety Executive have granted an exemption to the current Gas Safety and Management Regulation to the hydrogen content limit of 0.1% for the duration of the HyDeploy project. This is subject to strict safety arrangements being in place. BEIS will continue to pay close attention to the results from this project, and will take these into account in any future policy development.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:45:46 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203667

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Carbon Emissions
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of a whole energy systems approach to reaching the UK’s decarbonisation targets.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59333
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>The Government is committed to delivering clean growth and reaching our net zero target.</p><p> </p><p>We are already making good progress in decarbonising the power sector. More than half of our electricity (54%) was generated from low-carbon sources in 2019 and renewables’ share of generation now stands at a record 37%. Meanwhile, the use of coal in our electricity mix has dropped from 39% in 2012 to just 2% in 2019. Recently we celebrated a two-month milestone of coal-free power generation.</p><p> </p><p>We must continue to embrace the opportunities offered by technology to accelerate the transition to a cleaner future including innovations in energy storage technologies, smart and no-waste electricity grids, zero-emission vehicles, and eco-friendly buildings.</p><p>That is why, at the Spring Budget, we announced an ambitious support package worth over £2bn for our low carbon economy, including £270m new exchequer funding for heat networks, £100m for heat pumps and biomass and a commitment to at least double the size of the Energy Innovation Programme.</p><p> </p><p>The Government recognises the need to fully consider the complex interactions between different sectors of the economy, as it progresses on its ambitious programme of decarbonisation, and the potential benefits that systems-based thinking can bring to this.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:48:10 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203694

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Energy: Social Rented Housing
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the adequacy of the reports submitted to him by local authorities in 2019 under the Home Energy Conservation Act 1995.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59334
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>In 2019 BEIS introduced standardised digital platform in 2019 which was used for Home Energy Conservation Act responses to be collected and collated in consistent way. In addition, local authorities are required under the legislation to publish their report.</p><p> </p><p>BEIS is exploring options on the best use of the submitted data, particularly to inform policy thinking on energy efficiency, and to build an ongoing picture of local and national energy efficiency policy delivery.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:15:10 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203695

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Energy: Social Rented Housing
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to provide funding for energy efficiency projects highlighted in the reports submitted to him by local authorities in 2019 under the Home Energy Conservation Act 1995.
tabling member constituency	Southampton, Test
tabling member printed	Dr Alan Whitehead
uin	59335
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>We are supporting local authorities, local areas and local economies through a range programmes. Our Local Energy programme is supporting Local Enterprise Partnerships (LEPs), local authorities and communities in England to play a leading role in decarbonisation and clean growth. Almost £20 million has been invested and the programme has funded a range of measures designed to build local capacity and capability and encourage joined-up working between local areas, investors and central government, including:</p><ul><li>Five Local Energy Hubs, which have been established across England to provide local authorities and LEPs with access to expertise to help develop and secure investment in low carbon projects;</li><li>Good practice guidance, tools and resources for use by local authorities and LEPs; and</li><li>An online communications platform for local authorities and LEPs to share information and learn from each other.</li></ul><p> </p><p>In addition to direct funding, local authorities can voluntarily participate under the ‘LA Flex’ mechanism of ECO. This allows local authorities to identify low income and vulnerable households in their area and refer them to the larger energy suppliers, who have an obligation target to deliver energy efficiency measures under ECO.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:17:07 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	62 label Biography information for Dr Alan Whitehead

1203723

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Tidal Power: Swansea Bay
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his Answer of 9 June 2020 to Question 51817 on Tidal Power: Swansea Bay, if he will set out the exact range of capital assumptions made by his Department, in British pounds, for the Swansea Bay tidal lagoon value for money assessment.
tabling member constituency	Blackpool North and Cleveleys
tabling member printed	Paul Maynard
uin	59409
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>The capital cost assumptions used in the Value for Money Assessment of the proposed programme of lagoons[1] were derived from information shared under a non-disclosure agreement between Tidal Lagoon (Swansea Bay) Plc, Tidal Lagoon Power Ltd and the Department.</p><p> </p><p>The Department believes the non-disclosure agreement still applies in this case and the information cannot be released.</p><p><em>[1] Available at: https://www.gov.uk/government/publications/swansea-bay-tidal-lagoon-value-for-money-assessment</em></p><p><em> </em></p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:19:07 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	3926 label Biography information for Paul Maynard

1203724

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Tidal Power: Swansea Bay
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his Answer of 9 June 2020 to Question 51817 on Tidal Power: Swansea Bay, what range of hurdle rates, comparable to those more established renewable energy technologies, such as solar PV, onshore wind and large hydropower, were used for the Swansea Bay tidal lagoon value for money assessment.
tabling member constituency	Blackpool North and Cleveleys
tabling member printed	Paul Maynard
uin	59410
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>The hurdle rates applied across the portfolio of tidal lagoons in the Department’s value for money assessment[1] are shown in Table 1. The hurdle rates for other low carbon technologies estimated at the time of the value for money assessment are shown in Table 2.</p><p> </p><p><strong>Table 1: Range of hurdle rates applied to proposed programme of tidal lagoons<strong>[2]</strong></strong></p><table><tbody><tr><td><p><strong>Hurdle Rate Scenario</strong></p></td><td><p><strong>Hurdle rate </strong>(real terms, pre-tax)</p></td></tr><tr><td><p>Low</p></td><td><p>6.2%</p></td></tr><tr><td><p>Central</p></td><td><p>8.0%</p></td></tr><tr><td><p>High</p></td><td><p><del class="ministerial">9.2%</del><ins class="ministerial">9.0%</ins></p></td></tr></tbody></table><p> </p><p><strong>Table 2: Selected hurdle rates for other low carbon technologies </strong>(up to date at time the assessment was undertaken)[3]</p><table><tbody><tr><td><p><strong>Technology</strong></p></td><td><p><strong>Hurdle rate </strong>(real terms, pre-tax)</p></td></tr><tr><td><p>Onshore wind</p></td><td><p>6.7%</p></td></tr><tr><td><p>Offshore wind</p></td><td><p>8.9%</p></td></tr><tr><td><p>Solar PV (&gt;5MW)</p></td><td><p>6.5%</p></td></tr><tr><td><p>Nuclear</p></td><td><p>8.9%</p></td></tr><tr><td><p>Gas with CCUS (first of a kind)</p></td><td><p>11.3%</p></td></tr><tr><td><p>Hydro (&gt;5MW)</p></td><td><p>6.9%</p></td></tr></tbody></table><p> </p><p> </p><p> </p><p><em>[1] Available at: www.gov.uk/government/publications/swansea-bay-tidal-lagoon-value-for-money-assessment</em></p><p><em>[2] Source: BEIS commercial advisory</em></p><p><em>[3] Source: BEIS Electricity Generation Costs Report (2016), available at: www.gov.uk/government/publications/beis-electricity-generation-costs-november-2016</em></p><p> </p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:20:49 question first ministerially corrected 26/06/2020 13:35:17 answering member 4134 label Biography information for Kwasi Kwarteng previous answer version 31135 answering member constituency Spelthorne answering member printed Kwasi Kwarteng answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	3926 label Biography information for Paul Maynard

1203725

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Tidal Power: Swansea Bay
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason a 35-year contract for difference assumption was used for the Swansea Bay tidal lagoon value for money assessment when the project's estimated lifespan is 120 years.
tabling member constituency	Blackpool North and Cleveleys
tabling member printed	Paul Maynard
uin	59411
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>The Department considered a range of factors in coming to this conclusion. These included the proposed design life of project, the extent to which bill payers should accept operating life risk, a rapidly evolving energy market, and the falling cost of other renewable technologies.</p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:22:18 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	3926 label Biography information for Paul Maynard

1203726

registered interest
date	15/06/2020
answering body	Department for Business, Energy and Industrial Strategy
answering dept id	201
answering dept short name	Business, Energy and Industrial Strategy
answering dept sort name	Business, Energy and Industrial Strategy
hansard heading	Tidal Power: Swansea Bay
house id	1
legislature	25259 pref label House of Commons
question text	To ask the Secretary of State for Business, Energy and Industrial Strategy, what value assumptions his Department made in the Swansea Bay tidal lagoon project value for money assessment for years 36 to 120 of the project's lifespan, beyond the life of the 35-year contract for difference assumption.
tabling member constituency	Blackpool North and Cleveleys
tabling member printed	Paul Maynard
uin	59412
answer	answer is ministerial correction date of answer 23/06/2020 answer text <p>The key categories of assumptions used are listed in Annex B of the Department’s value for money assessment for the proposed programme of tidal lagoons.[1]</p><p> </p><p>Test 2a of the assessment considered levelised cost, expressed in £/MWh terms, of the proposed lagoons over their full assumed asset life of 120 years.</p><p> </p><p>Test 2b <em>(costs of the GB power system) </em>and Test 3 <em>(household bills) </em>assessed the proposed lagoons over the period to 2050. In these cases the costs of the lagoon were spread over the full 120 year asset life. This means that for a tidal lagoon commissioning in 2035, only 15 years’ worth of costs will have been factored in and compared to any benefits occurring over those same 15 years. This approach avoids a mismatch between costs and benefits in the value for money assessment.</p><p> </p><p><em>[1] Available at www.gov.uk/government/publications/swansea-bay-tidal-lagoon-value-for-money-assessment</em></p><p> </p> answering member constituency Spelthorne answering member printed Kwasi Kwarteng question first answered 23/06/2020 10:29:37 answering member 4134 label Biography information for Kwasi Kwarteng
tabling member	3926 label Biography information for Paul Maynard