Urgent Call for UK Government to Support Green Hydrogen Projects
Key Ideas
  • Hydrogen UK urges the new UK government to prioritize green hydrogen projects and ensure they progress to final investment decision within the first 100 days in office.
  • The association highlights the importance of overcoming regulatory hurdles and providing funding certainty to instill investor confidence in the sector.
  • Calls have been made for policies and regulations impacting electrolytic hydrogen projects to be reviewed to reduce hydrogen production costs and ensure access to low-cost electricity.
  • In addition to supporting green hydrogen projects, Hydrogen UK advocates for the establishment of a dedicated ministerial role or office for hydrogen and the acceleration of funding for hydrogen storage and transport business models.
Hydrogen UK, a trade body, is urgently calling on the incoming UK government to ensure that key green hydrogen projects can reach the final investment decision within the first 100 days in office. The association has raised concerns about delays and regulatory hurdles that are jeopardizing the progress of 11 green hydrogen projects allocated £2bn in revenue support under the Hydrogen Allocation Round 1 (HAR1). Hydrogen UK emphasized the need for the government to overcome issues with the Low Carbon Hydrogen Agreement and provide flexibility to ensure project progression. The association also called for a review of policies impacting electrolytic hydrogen projects to reduce production costs. Hydrogen UK stressed the importance of showcasing hydrogen's value by advancing innovative projects. The UK energy regulator OFGEM recently approved a proposal mandating electricity suppliers to disclose data for green hydrogen projects, ensuring compliance with the low-carbon hydrogen standard. The manifesto also advocates for the application of the standard across all relevant government departments. Additionally, support for blue hydrogen projects involving carbon capture, utilisation, and storage is recommended. The association suggests funding the Cluster Sequencing Process and accelerating funding for hydrogen storage and transport business models. Hydrogen UK proposes the introduction of a dedicated ministerial role or Office for Hydrogen to coordinate government efforts. Lastly, funding certainty for hydrogen support schemes is highlighted as essential to boost investor confidence in the sector.
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