Meeting of the Parliament (Virtual) 11 February 2021
I want to reassure Mr Ruskell on a couple of points. First, we recognise that grey hydrogen is a product that is used in the Scottish economy already, but it is not a key plank of our hydrogen policy. We hope to see the development of blue hydrogen and green hydrogen so that they can replace grey hydrogen, which is used as an industrial feedstock in the manufacturing sector. I hope that I can reassure Mr Ruskell that developing grey hydrogen is not a core part of our hydrogen policy; indeed, we want to see it replaced.
Carbon capture technology is already up and running. There are several projects in Norway that are operated by Equinor. The issue is about getting carbon capture, utilisation and storage to a commercially viable position where it can survive without huge subsidies. We are truly excited about the potential for the Acorn project to use St Fergus gas terminal near Peterhead to deploy carbon capture, utilisation and storage technology and potentially play a role in developing green hydrogen for use in the Scottish economy. That could help to grow the hydrogen economy and make sure that demand for hydrogen can be met as we increase the capacity for green hydrogen in the medium to long term. There is a role and a need for both technologies.
Mark Ruskell seemed to be critical of the oil and gas sector’s involvement, although I appreciate that that might not have been his intention. We have to have an eye on the need for a just transition. We need to protect jobs in the oil and gas industry and transition those jobs into a form that is consistent with achieving net zero, and that is clearly what the industry is trying to do. I know that there is some cynicism about that, but I assure Mark Ruskell that I believe that the conversations that I have had with the oil and gas sector have been sincere and that the industry is genuinely trying to decarbonise. We have seen that with the Crown Estate’s auction round 4 in England, where there has been huge interest from the oil and gas industry in developing offshore wind sites to generate green hydrogen.
I am happy to discuss that with Mark Ruskell offline, but I hope that he can be confident that his fears are unfounded.