The UK Government has launched a consultation on a proposed funding mechanism to support hydrogen projects as part of its commitment to achieving a low-carbon, clean energy system by 2030 and reaching net zero emissions. The Department for Energy Security and Net Zero (DESNZ) views hydrogen as a key player in meeting decarbonisation goals, with potential cost savings of £13 billion to £24 billion in the power sector from 2030 to 2050. The Hydrogen Production Business Model is introduced to provide revenue support to hydrogen producers, with the Gas Shipper Obligation (GSO) levy being a central component. The GSO levy is structured to ensure a fair contribution from gas shippers based on gas volume, promoting transparency and regulatory oversight. The government aims to make hydrogen production competitive by addressing the cost disparity with high carbon fuels. The GSO is designed with principles such as solvency, simplicity, affordability, and policy coherence to provide long-term revenue support to hydrogen business models while maintaining market stability and flexibility to adapt to sector changes. However, the pass-through of GSO costs to end users may lead to increased gas prices for both domestic and non-domestic consumers, though the impact is estimated to be relatively modest. The Government is considering measures to mitigate the effects on vulnerable households. Without GSO funding for hydrogen deployment, alternative decarbonisation technologies would likely result in higher costs for end users. The consultation aims to refine the GSO system to support initial and future hydrogen projects effectively.