UK's Hydrogen Energy Association Praises Market Intervention for Hydrogen to Power
Key Ideas
- The UK's leading hydrogen trade association supports the government's commitment to establish a Hydrogen to Power Business Model to mitigate investment risks in hydrogen projects.
- The deployment of Hydrogen to Power (H2P) is seen as crucial for integrating renewables, ensuring a secure energy system, and phasing out unabated gas.
- A Dispatchable Power Agreement mechanism will be implemented to support H2P deployment, with further details to be outlined in a market engagement document in Spring 2025.
- The establishment of the H2P Expert Working Group aims to foster collaboration between government, industry stakeholders, and the Hydrogen Energy Association to shape an efficient and innovative business model for hydrogen deployment.
The Hydrogen Energy Association in the United Kingdom has expressed approval for the government's initiative to introduce a Hydrogen to Power (H2P) Business Model. This move aims to reduce investment risks associated with hydrogen projects. Celia Greaves, the CEO of the association, emphasized the significance of hydrogen in the country's clean energy future. The H2P model is viewed as a solution to challenges in the energy transition, enabling the delivery of low-carbon, dispatchable power and facilitating the integration of renewables into a reliable energy system while phasing out unabated gas. The proposed Dispatchable Power Agreement mechanism will provide support for H2P deployment, with detailed plans set to be revealed in a market engagement document in Spring 2025. Additionally, the establishment of the H2P Expert Working Group indicates a collaborative effort between the government, industry stakeholders, and the Association to develop an effective business model for hydrogen deployment. This strategic approach is seen as essential for realizing hydrogen's potential as a transformative energy source, which would contribute to a cleaner, sustainable, and more secure energy system in the UK.
Topics
Aviation
Clean Energy
Infrastructure
Investment
Energy Transition
Business Model
Industry Collaboration
Government Intervention
Capacity Market
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