UK Hydrogen Strategy published

Hydrogen Strategy announced

UK’s Hydrogen Strategy is joined by announcement of Tees Valley hydrogen hub competition winners

Over 9,000 jobs and £4bn worth of investment is set to be unlocked by 2030, according to the UK’s new Hydrogen Strategy, due to be published today (17 August).

Business and Energy Secretary Kwasi Kwarteng laid out the ambitions of the plan, which is set to build on the Prime Minister’s initial 10 Point Plan for a green industrial revolution and lay out a policy landscape to meet the target of 5GW of low carbon hydrogen production capacity by 2030.

The strategy will be joined by a public consultation on a preferred hydrogen business model designed to overcome the cost gap between low carbon hydrogen and fossil fuels, and the design of a £240m Net Zero Hydrogen Fund, aimed to support the deployment of low carbon hydrogen production plants across the UK.

Other measures include:

  • Support for green hydrogen and blue carbon capture hydrogen production
  • Collaboration on a UK standard for low carbon hydrogen to ensure net zero targets are being met
  • A review to support a hydrogen network and storage infrastructure
  • Assessing a mixing of 20% hydrogen into the existing gas supply, delivering an emissions reduction on natural gas
  • A hydrogen sector development action plan to support companies looking for supply chain opportunities, skills and jobs in hydrogen.

Calls for a hydrogen strategy have long been part of manufacturer’s ambitions, with Arcola Energy, Ryse Hydrogen and Wrightbus among co-signatories of a letter sent to Chancellor Rishi Sunak by campaign group Hydrogen Strategy Now last year.

“Today marks the start of the UK’s hydrogen revolution,” says Mr Kwarteng. “This home-grown clean energy source has the potential to transform the way we power our lives and will be essential to tackling climate change and reaching Net Zero.

“With the potential to provide a third of the UK’s energy in the future, our strategy positions the UK as first in the global race to ramp up hydrogen technology and seize the thousands of jobs and private investment that come with it.”

Tees Valley Hydrogen hub winners announced

The strategy comes as Transport Secretary Grant Shapps today announced the winners of a £2.5m research and development competition to accelerate the use of hydrogen transport in the Tees Valley.

The trials will see diesel buses retrofitted to hydrogen fuel cells, and monitor hydrogen’s role in meeting net zero targets. Stagecoach and Ricardo will retrofit a double-decker diesel bus with a hybrid fuel cell system. Learnings will support fuel cell retrofit across the UK.

It joins a study which sets out a vision and plan for a “hydrogen transport hub” in the Tees Valley, which it is hoped will act as a blueprint for the UK.

Says Mr Shapps: “With less than 100 days to go until COP26, I’m committed to supporting industry to develop innovative new technologies that will decarbonise transport, helping us to build back greener and level up the country.

“By harnessing the power of hydrogen technology, we can pave the way for its use across all transport modes, creating cleaner, greener more efficient transport systems across the UK.”

As well as publishing the Hydrogen Strategy, the UK government will also publish the Low Carbon Hydrogen Standards Consultation, the Net Zero Hydrogen Fund Consultation and the Hydrogen Business Model Consultation.