UK policies on hydrogen - future net zero

Hydrogen in a low-carbon economy, 2018

In 2018, the Climate Change Committee published a report on Hydrogen in a low-carbon economy. It found that hydrogen is a credible option to help decarbonise the UK energy system. Hydrogen was viewed by the CCC as “best used selectively” and particularly in those sectors where “the alternative is continuing to burn unabated fossil fuels or where there are limits to feasible electrification.”

Ten Point Plan, 2020

In November 2020, the Government published The Ten Point Plan for a Green Industrial Revolution. It included a commitment to publishing a hydrogen strategy in 2021, a timeline of next steps for the development of hydrogen as a fuel and heating source and a target to establish 5GW of low carbon hydrogen production capacity by 2030.

The role of hydrogen APPG report, 2021

In July 2021, The All-Party Parliamentary Group (APPG) on Hydrogen published its report on the role of hydrogen in powering industry, argued that the government needed to go further than this target and should “continue to expand beyond its existing commitments of 5GW production in the forthcoming Hydrogen Strategy.”

UK Hydrogen Strategy, 2021

The government described hydrogen as having a “critical” role to play in the UK’s transition to net zero and set out how it thinks the production, distribution, storage and use of hydrogen needs to be developed if the UK is to have a domestic, low carbon hydrogen sector.

Green Finance Strategy, 2023

The UK government committed to supporting the development of a green finance strategy to mobilise private sector investment in low-carbon technologies, including hydrogen projects.

Powering up Britain, 2023

As part of the strategy the government confirmed the first winning projects from the £240 million Net Zero Hydrogen Fund, named the two CCUS-enabled hydrogen projects moving forward on the Track-1 clusters, published a shortlist of 20 projects the government intends to enter due diligence with for the first electrolytic hydrogen allocation round; and announced their intention to open two further hydrogen funding rounds in 2023.

Funding and research support

The UK government provides funding and support for research, development and demonstration projects related to hydrogen technologies and infrastructure.

UK Hydrogen Strategy, 2021

The Strategy

The Hydrogen Strategy sets out the approach to developing a thriving low carbon hydrogen sector in the UK to meet the country's increased ambition for 10GW of low carbon hydrogen production capacity by 2030.

Expanding domestic hydrogen

Expanding domestic hydrogen production, supported by a £240m Net Zero Hydrogen Fund (launched in May 2022) for co-investment in early hydrogen production projects. The Government has also funded a £33m Low-Carbon Hydrogen Supply Competition for demonstrator plants.

Significant development and scale up

Significant development and scale up of hydrogen network and storage infrastructure, with a £68 million Longer Duration Energy Storage Demonstration competition and a review of hydrogen network and storage requirements. At present, hydrogen tends to be produced and used in the same location.

Scaling up the use of low carbon hydrogen

Scaling up the use of low carbon hydrogen in the UK across different sectors, including heating buildings and transport, with feasibility studies, trials and pilot projects planned, such as hydrogen domestic heating trials. Hydrogen is particularly singled out in the Strategy as an important method to decarbonise industrial processes and thus help ‘hard to electrify’ UK industrial sectors.

Establishing a market framework

Establishing a market framework for hydrogen and a “supportive regulatory framework.” The government has recently published its response to the consultation on a Low Carbon Hydrogen Business Model (April 2022).

The government explains

The government also explains in the Hydrogen Strategy that it is working with the Health and Safety Executive (HSE) and industry “to assess the potential for 20% hydrogen blending into the gas network,” to reduce reliance on natural gas and help create a market for hydrogen.

Alongside the Hydrogen Strategy

Alongside the Strategy, the Government published Hydrogen production costs 2021, providing “levelised cost estimates for hydrogen production technologies.” It defines levelised costs as the “average cost over the lifetime of the plant per MWh of hydrogen produced.”

British Energy Security Strategy, April 2022

The main proposals for hydrogen:

Doubling our ambition to up to 10GW of low carbon hydrogen production capacity by 2030, subject to affordability and value for money, with at least half of this coming from electrolytic hydrogen. By efficiently using our surplus renewable power to make hydrogen, we will reduce electricity system costs.
Aiming to run annual allocation rounds for electrolytic hydrogen, moving to price competitive allocation by 2025 as soon as legislation and market conditions allow, so that up to 1GW of electrolytic hydrogen is in construction or operational by 2025.
Designing, by 2025, new business models for hydrogen transport and storage infrastructure, which will be essential to grow the hydrogen economy.
Levelling the playing field by setting up a hydrogen certification scheme by 2025, to demonstrate high-grade British hydrogen for export and ensure any imported hydrogen meets the same high standards that UK companies expect. The Strategy identifies two forms of electrolytic hydrogen: ‘green’ hydrogen (described as being produced via electrolysis) and ‘pink’ hydrogen (described as being produced via electrolysis but with energy from a nuclear power plant).

News & Commentary Index Net Hero Podcast Our Events 100 Days of Labour The Big Zero Show Our Partners UN Race to Zero Contact Us

future net zero, Cuffley Place, Sopers Road, EN6 4SG
Registered as a business in England & Wales No: 07209102 VAT No: 988 8336 42

All images are copyright of Shutterstock unless stated otherwise.

Our Carbon Footprint

25,379

kg C02e