UK Government Commits to Hydrogen to Power Business Model Development
Key Ideas
- The Hydrogen Energy Association welcomes the UK government's commitment to developing a Hydrogen to Power (H2P) Business Model to support hydrogen projects.
- The business model aims to de-risk investments in hydrogen projects and promote low-carbon, dispatchable power for a cleaner energy system.
- The introduction of a Dispatchable Power Agreement mechanism and the establishment of the H2P Expert Working Group are key steps in realizing hydrogen's potential in the UK.
- Collaboration between government and industry stakeholders is crucial in shaping an innovative and efficient business model for hydrogen deployment.
The Hydrogen Energy Association in the United Kingdom has expressed its support for the government's decision to establish a Hydrogen to Power (H2P) Business Model. This initiative aims to mitigate investment risks associated with hydrogen projects and facilitate the integration of low-carbon, dispatchable power into the energy system. The CEO of the association, Celia Greaves, highlighted the importance of hydrogen in addressing energy transition challenges and reducing reliance on unabated gas.
By committing to the development of a Dispatchable Power Agreement mechanism, the government seeks to create a supportive framework for H2P deployment. Additionally, the formation of the H2P Expert Working Group will further enhance collaboration and expertise in the hydrogen sector. These strategic steps align with the UK's clean energy objectives and underscore the role of hydrogen in achieving a sustainable and secure energy landscape.
Looking ahead to Spring 2025, the Hydrogen Energy Association anticipates active engagement with stakeholders to refine the business model for H2P. The association emphasizes the need for innovative policy measures that balance risk-sharing and efficiency to unlock hydrogen's transformative potential. Through coordinated efforts between the government and industry, hydrogen is poised to play a key role in building a cleaner and more sustainable energy system in the UK.