Driving Down Costs and Accelerating Deployment: The UK's Green Hydrogen Potential
Key Ideas
  • A new report outlines measures to reduce the cost of green hydrogen in the UK to under £100/MWh, emphasizing the need to make hydrogen production affordable to decarbonize various sectors.
  • Recommendations include incentivizing electrolysis during low-cost electricity periods, removing barriers for hydrogen production at renewable energy sites, and reforming the hydrogen production business model.
  • Collaboration between government and industry is essential to attract investment and establish effective business models for the transition to green hydrogen, which can significantly reduce economy-wide emissions.
  • The report also highlights the importance of addressing intellectual property rights to encourage innovation and drive down costs in green hydrogen production and distribution.
A recent report by RenewableUK and Hydrogen UK focuses on reducing the cost of green hydrogen production in the UK to under £100/MWh from £241 per MWh in 2023. The report stresses the potential of using renewable electricity for hydrogen production and suggests key steps to unlock economies of scale. Recommendations include incentivizing electrolysis during periods of low-cost electricity, removing barriers to locating hydrogen production at renewable energy sites, and reforming the business model for hydrogen production. The goal is to make green hydrogen more affordable, with a focus on sectors like steel, chemicals, and shipping to aid in their decarbonization efforts. The report also underlines the need for collaboration between the government and industry to attract investment and establish viable business models for transitioning to green hydrogen. One crucial aspect highlighted in the report is the impact of intellectual property on driving down the costs of green hydrogen. While patents may restrict the exploitation of patented technology, they play a vital role in incentivizing innovation and attracting investment for research and development. Removing unnecessary taxes and levies on hydrogen production is also emphasized to promote the transition to green hydrogen and achieve net-zero goals. The upcoming Hydrogen Week event in Liverpool will provide a platform to discuss progress in the North West regarding green hydrogen and its influence on national strategies. The event is expected to shed light on the advancements made in the region and how they contribute to the broader goals of the UK's green hydrogen agenda.
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