Tuesday 27 June 2023

UK hydrogen industry calls for funding mechanism in Energy Bill

UK hydrogen industry calls for funding mechanism in Energy Bill

Trade association Hydrogen UK has highlighted the significance of incorporating a suitable funding mechanism within the Energy Bill currently under discussion in the Public Bill Committee Stage.

The association underscores the importance of such provisions in ensuring the long-term energy security of the UK.

The inclusion of funding for hydrogen within the Energy Bill is viewed as an essential investment that would foster "a more efficient, affordable, and integrated energy system".

Moreover, it is projected to create tens of thousands of jobs, strengthen supply chains, and generate substantial Gross Value Added for the country.

Grant Shapps, the Secretary of State for the Department of Energy Security and Net Zero, recently proposed an amendment to the bill, indicating that the funding mechanism would not directly burden household energy bills.

Hydrogen UK has expressed concerns regarding the absence of a clear legislative framework for funding.

Without such clarity, there is a risk that the associated investment, job creation, supply chains and economic benefits of hydrogen development may be lost to international competitors, the association has said.

Clare Jackson, Chief Executive Officer of Hydrogen UK, said: "This is an existential moment for the future of the UK’s low carbon energy systems and for our country’s global leadership in the economies of the future.

"The government must safeguard a suitable funding mechanism for hydrogen in the Bill. Hydrogen UK calls for clarity on what this funding mechanism will be and urges the government to ensure the mechanism is sufficiently flexible and robust to allow the industry to make major investment decisions as soon as possible."

Written by

Bruna Pinhoni

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