Challenges and Opportunities for the UK's Hydrogen Market
Key Ideas
- Contracts for Difference funding model in the UK is criticized for being unsuitable for the emerging hydrogen market, potentially hindering progress.
- Concerns arise over policy gaps that could jeopardize the country's target of achieving 10GW of hydrogen production by 2030.
- Denis Thomas, from a US electrolyser maker, views the UK as an appealing market due to its low-carbon hydrogen standard, which has advantages over EU and US criteria.
- The Hydrogen UK Annual Conference discusses the challenges and opportunities to drive the growth of the hydrogen sector in the UK.
The UK's Contracts for Difference (CfD) funding model is facing criticism for not being suitable for the growing hydrogen market. At the Hydrogen UK Annual Conference, concerns were raised about the potential missed opportunities and risks associated with the current funding model, which could hinder the country's progress towards achieving its 2030 target of 10GW of hydrogen production.
Denis Thomas, the Global Marketing Director for electrolysers at a US company, expressed positive views about the UK market, considering it attractive. He specifically praised the country's low-carbon hydrogen standard (LCHS) for avoiding certain restrictive criteria present in the EU and US regarding additionality, hourly matching, and grid correlation.
The discussion at the conference highlighted the need to address policy gaps that might impede the development of the hydrogen sector in the UK. Despite the challenges, there is optimism surrounding the potential for growth and innovation in the market. The event emphasized the importance of aligning policies to support the transition towards sustainable energy sources and to meet ambitious targets set by the government.