Government fires up ‘hydrogen revolution’

The Business and Energy Secretary has today set out the UK’s ‘first-ever’ Hydrogen Strategy that is forecast to unlock £4 billion investment by 2030

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The government has today published its much-anticipated Hydrogen Strategy that is predicted to support 9,000 jobs and unlock £4 billion investment by 2030.

As part of the strategy, a new public consultation has been launched to look at ways to lower the cost of hydrogen production.

A new £240 million ‘Net Zero Hydrogen Fund’ will also be available to support the commercial deployment of new low carbon hydrogen production plants.

Technologies including ‘green’ electrolytic and ‘blue’ carbon capture-enabled hydrogen production will be backed by the new policy framework.

The government has also committed to working with the industry to assess the safety, technical feasibility and cost-effectiveness of mixing 20% hydrogen into the existing gas supply.

The move is predicted to deliver a 7% emissions reduction on natural gas.

In early 2o22 a hydrogen sector development action plan is expected to be published to help businesses understand how they can benefit from hydrogen to future-proof their supply chains and jobs.

The government has also published details of a new £105 million scheme, to help carbon-intensive industries to cut their emissions.

The grant will fund the development and trials of solutions that will enable industries to switch from high to low carbon fuels.

It will also provide grant funding for the development of low carbon alternatives to diesel for the construction, quarrying and mining sectors with the aim of decarbonising these industries reliant on red diesel.

Business and Energy Secretary Kwasi Kwarteng said: “Today marks the start of the UK’s hydrogen revolution. This home-grown clean energy source has the potential to transform the way we power our lives and will be essential to tackling climate change and reaching net zero.”

Hydrogen Director at National Grid Antony Green said: “This strategy signals the UK’s commitment to hydrogen and provides the certainty needed to boost consumer and investor confidence and support commercial solutions.”

Chief Executive at SSE Alistair Phillips-Davies said: “We strongly welcome the publication of this first-ever Hydrogen Strategy and hope to turn this encouraging strategy into firm and rapid action through our exciting plans.

“These include working with Equinor on the world’s first major hydrogen-fired power station at Keadby and developing hydrogen storage caverns at Aldbrough, as well as our partnership with Siemens to co-locate hydrogen production facilities at our wind farms.”