Policy paper: UK hydrogen strategy
25th August 2021 by CMIA
Published last week by the Department for Business, Energy & Industrial Strategy.
This strategy sets out the approach to developing a thriving low carbon hydrogen sector in the UK to meet our ambition for 5GW of low carbon hydrogen production capacity by 2030.
Hydrogen is a new low carbon solution which can help the UK to achieve net zero by 2050, and our Sixth Carbon Budget target by 2035.
As set out in the 10 point plan for a green industrial revolution, government, working with industry, is aiming for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. This level of hydrogen production could be equivalent to the amount of gas consumed by over 3 million households in the UK each year.
The UK’s first Hydrogen Strategy outlines:
- how the UK will rapidly and significantly scale up production and lay the foundations for a low carbon hydrogen economy by 2030
- how government will support innovation and stimulate investment in the 2020s to scale up low carbon hydrogen
The Strategy details how we will look to capture the economic benefits of growing the UK hydrogen economy, supporting innovation and stimulating investment to develop the supply chains and skills needed and create jobs and export opportunities for the UK.
It also sets out our twin-track approach to supporting both electrolytic ‘green’ and carbon capture (CCUS)-enabled ‘blue’ hydrogen production, alongside other potential production routes, which will enable the rapid growth of the sector while bringing down costs. We outline a comprehensive roadmap for the development of the wider hydrogen economy over the 2020s to deliver our 2030 5GW ambition.
We have published a wider package of policy documents on hydrogen alongside the Strategy:
- Consultation on a Hydrogen Business Modelto stimulate private investment in new low carbon hydrogen projects
- Consultation on the design of the £240 million Net Zero Hydrogen Fund (NZHF)confirmed out to 2025 to support new hydrogen production projects
- Consultation on a UK Low Carbon Hydrogen Standardthat will define what is meant by low carbon hydrogen, allowing us to incentivise and support low carbon hydrogen for supply across the energy system
- further detail on projected costs of hydrogen production technologiesout to 2050, and an annex setting out the analysis and evidence underpinning the Hydrogen Strategy and consultations
Access the full report here: https://bit.ly/HydStrat