UK Hydrogen Industry Calls for Pragmatism and Policy Certainty Amid Development Challenges
Key Ideas
- The UK Labour government plans to unveil an updated hydrogen strategy, building upon the previous Conservative government's initiatives to drive clean power and economic growth.
- Despite delays and challenges in the first hydrogen allocation round, the government aims to finalize agreements with all 11 projects by May, demonstrating commitment to the hydrogen sector.
- Hydrogen UK chief executive Clare Jackson highlighted the global consensus on the importance of hydrogen in achieving net zero emissions and the significant economic opportunities it presents for the UK.
- Analyst firm Westwood Global Energy Group's research warns of the potential failure of European hydrogen projects without market intervention, emphasizing the need for policy evolution and demand-driven approaches.
The UK hydrogen industry is urging the government to provide 'pragmatism' and policy certainty to help overcome development challenges. The Labour government has committed to releasing an updated hydrogen strategy, following the foundation laid by the previous Conservative government in 2021. Speaking at the Hydrogen UK annual conference in Birmingham, industry minister Sarah Jones emphasized the evolving understanding of hydrogen's role in the energy sector and economic growth. Despite delays in the first hydrogen allocation round, the government is determined to secure agreements with all 11 projects by May. Clare Jackson, the CEO of Hydrogen UK, highlighted the global consensus on the necessity of hydrogen for achieving net zero emissions and underscored the economic potential, estimating the global hydrogen market could reach $8 trillion by 2050. However, analysts from Westwood Global Energy Group caution that without market intervention, 83% of European hydrogen projects might not materialize by 2030. They stress the need for policy evolution and demand-driven approaches to bridge the gap between ambition and reality in the hydrogen sector.
Topics
Blue Hydrogen
Government Policy
Energy Transition
Market Analysis
Economic Growth
Investment Opportunities
Industry Challenges
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