A report on how South Wales and western England can transition to become a global leader in net zero technology, and where investment in hydrogen infrastructure and innovation could create and safeguard 100,000 jobs, will be outlined today at the conference in Newport.
The Western Gateway Partnership organised conference at the ICC Wales will hear how the cross-border region can help the aviation sector decarbonise and reach its net zero goal with the development of hydrogen-powered aircraft, as well as providing a hydrogen infrastructure and storage network to help industries reduce emissions - including Tata’s steelmaking plant in Port Talbot.
The partnership is made up of city regions, local authorities, businesses and universities on both sides of the border from Swansea to Swindon - covering a population of 4.4 million. It doesn’t have statutory power status. Its hydrogen delivery pathway up to 2050 report identifies other opportunities that could be exploited, including decisions this year and in 2026 from the UK Government which could pivot the UK’s gas network entirely to hydrogen.
It said that investment in hydrogen infrastructure on both side of the border, and if used by industry at scale, could create up to 40,000 new jobs (directly and indirectly) and safeguard a further 60,000 existing jobs. This is said would save between 16,000 and 21,000 kilo tonnes of greenhouse gas emissions by 2050.
The report said there is an opportunity to build on the area’s reputation as a centre for aviation engineering – being home to 14 of the 15 world largest aerospace manufacturers including Airbus - which are already pioneering hydrogen aircraft design. It also identifies the Welsh Government’s Global Centre of Rail Excellence scheme north of Port Talbot, as a potential location for the testing and development of hydrogen powered trains. The project is currently assessing investor appetite from the private sector.
On required capital investment - both public and private - the report says that £8bn is needed to meet existing demand for low carbon hydrogen by large industry, through to £62bn if adoption becomes mainstream. While hydrogen is unlikely to be the whole answer to achieving net zero, the Western Gateway Partnership says it needs to be part of the solution. It will now work with partners and stakeholders on a delivery plan - while aiming to speak with one voice to the UK and Welsh governments, so that a policy framework and financial instruments required to attract investment are in place.
As part of a separate work stream, the Great Western Partnership is expected to shortly publish a report into the potential for renewable energy projects in the Severn Estuary - including assessing the option for a Severn Barrage which if finally realised could generate up to 10% of the UK’s electricity needs.
Today’s conference is being staged is collaboration with Hydrogen South West, the South Wales Industrial Cluster - which earlier this year published a supporting report on how industry in South Wales could decarbonise - and the GW4 Alliance (which brings together the universities of Bath, Bristol, Cardiff and Exeter).
Katherine Bennett, chair of the Western Gateway, said: “Our area has huge potential to deliver opportunities for the rest of the UK. Using our combined strengths and skills, our leaders and businesses are ready to provide huge economic opportunity for both countries finding world saving solutions for some of the toughest decarbonisation problems as the UK’s green energy powerhouse.
Our delivery pathway is just the beginning and I look forward to working across business and the public sector to bring these opportunities to life.”
Chris Skidmore MP, chair of the UK Net Zero Review, who will speak at today conference, said: “Last year the UK Government confirmed that Hydrogen is a key part of its plans to reach Net Zero, with aims to increase production to 10GW by 2030 and the announcement of a new national hydrogen champion. The Western Gateway has nationally significant strengths in hydrogen, from the South Wales Industrial Cluster to the hydrogen hub in Swindon, and I’m delighted to support their work to power the UK’s Net Zero economy.”
The conference will also be addressed by Minister for Climate Change, Julie James , UK Government Minister for Energy Efficiency and Green Finance, Lord Callanan, alongside representatives from RWE, EDF, Airbus, Wales and West Utilities, Innovate UK,the UK Infrastructure Bank and the British Business Bank.
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