Thursday 14 December 2023

Government backs 11 major green hydrogen projects with £2bn

Government backs 11 major green hydrogen projects with £2bn

The UK Government has announced it is backing 11 major projects to produce green hydrogen with £2 billion in funding over the next 15 years.

The projects are expected to invest around £400 million up front over the next three years and deliver 125MW of new hydrogen while creating more than 700 jobs.

Unlike blue hydrogen, which is formed using fossil fuels and capturing the carbon emissions, green hydrogen is made using renewable energy to split water, helping to provide cleaner fuel for energy-intensive industries and transport.

Green hydrogen will be provided for businesses including Sofidel in South Wales, which will replace 50% of its current gas boiler usage with hydrogen at its Port Talbot paper mill and InchDairnie Distillery in Scotland, which plans to run a boiler on 100% hydrogen for use in its distilling process.

In addition, PD Ports in Teeside will use the hydrogen to replace diesel in its vehicle fleet, decarbonising port operations from 2026.

The projects will support the government's ambition to deploy up to 10GW of low carbon production capacity by 2030.

Energy Security Secretary Claire Coutinho said: “Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11 billion of investment by 2030.

“Today’s announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe.

“These 11 major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland.”

A second round of funding is now available for producers to apply for to help develop the next round of projects.

Written by

Sumit Bose

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