Exploring Legislative Solutions to Reduce Costs and Improve Environmental Impact of Hydrogen Production
Key Ideas
- The UK government at the Spring Statement 2025 pledged to eliminate Climate Change Levy (CCL) costs from electricity utilized in electrolysis for hydrogen production.
- A consultation, open until 7th May, aims to gather opinions on reducing CCL costs effectively while ensuring positive environmental outcomes.
- Emma Guthrie, CEO of the Hydrogen Energy Association, appreciates the government's move, aligning with the advocacy of the Green Hydrogen Working Group.
- The consultation seeks input on the best legislative approach to tackle costs associated with hydrogen production and mitigate unintended consequences.
During the Spring Statement 2025 in the United Kingdom, the government made a commitment to exempt electricity used in electrolysis for hydrogen production from the Climate Change Levy (CCL) costs. This decision is part of a strategy to promote green hydrogen and enhance the environmental sustainability of hydrogen production processes. The consultation, which will be open until 7th May, is designed to gather feedback on how best to reduce CCL costs while ensuring that the changes yield positive environmental benefits. Emma Guthrie, the CEO of the Hydrogen Energy Association, has expressed support for this initiative, highlighting that it addresses a crucial issue that the Green Hydrogen Working Group has been advocating for. Stakeholders are encouraged to contribute their perspectives on the most effective legislative methods to minimize costs associated with hydrogen production and prevent any unintended negative impacts on the environment or other sectors.