By 2030, the cost of producing hydrogen could halve.
That’s according to research by Boston Consulting Group, claiming that production could follow the same path of similar energy transition technologies.
It claims the UK can become a global hydrogen leader if it invests in the right way – which will also help it to achieve its net zero goals.
For production rates to halve, the analysis states the first step needs to be to develop the existing gas network and heavily reduce hydrogen capital spending.
On top of this, developing early-stage projects are another way that could see prices drop, with the UK needing to develop bilateral agreements to grow its stake in the market.
It compares the UK’s zero bilateral agreements to Germany, which currently has 13 in place.
The report states: “Global competition is ramping up quickly. The UK must learn lessons from past experiences in developing new energy technologies, as well as learning what is working elsewhere if it wants to establish a position as a global leader in hydrogen.
“Moving quickly to develop industrial clusters and focusing on areas of expertise will maximise the UK’s chances of success rather than trying to create all aspects of a brand-new value chain at once.”