Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, 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.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, 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.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, 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.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, 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.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 12 March 2025 to Question 35325 on Ammonia: Exports, which countries his Department has identified as the strongest markets for exports of ammonia cracking technologies; and what steps his Department is taking to help introduce UK companies to potential customers in these markets.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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. The government will soon publish the new Industrial Strategy, with Clean Energy Industries as a priority growth sector. As the sector develops, government will work with UK companies developing ammonia cracking technologies to understand the opportunities for growth through exports.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to allow projects that use ammonia cracking technology to be eligible in future Hydrogen Allocation Rounds.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the international export potential of UK manufacturers of ammonia cracking technology.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
We are aware of various companies developing ammonia cracking technologies, who are also looking to export these technologies overseas. We are committed to ensuring that businesses in the UK hydrogen sector grow and thrive, including through exports of hydrogen goods and services, so they can benefit from the opportunities of the transition to clean energy, through strong international trade relationships and effective supply chains.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether he has made an assessment of the potential merits of including green ammonia technologies in (a) the advanced manufacturing or (b) clean energy industries sections of the Industrial Strategy.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Industrial Strategy Green Paper identified eight growth-driving sectors, including both advanced manufacturing and clean energy industries. Low carbon ammonia could play a role in reaching net zero as part of a diverse energy mix. All sectors can shape and benefit from policy reform through the Industrial Strategy’s cross-cutting policies alongside the broader Growth Mission.
The Industrial Strategy, alongside Sector Plans for the growth-driving sectors, will be published in spring 2025, aligned with the multi-year Spending Review.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to develop a green ammonia market in the UK.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.
Asked by: Kit Malthouse (Conservative - North West Hampshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, 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.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
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.