UK government unveils hydrogen strategy

Building on commitments laid out in the UK government’s ten point green industrial revolution plan the new strategy sets out how government will work with industry to meet its ambition for 5GW of low carbon hydrogen production capacity by 2030.  It claims that as much as 35 per cent of the UK’s energy consumption could be hydrogen-based by 2050.

According to a statement released ahead of publication of the full document, the government is consulting on the design of a £240m Net Zero Hydrogen Fund, which aims to support the commercial deployment of new low carbon hydrogen production plants across the UK. Meanwhile, a hydrogen sector development action plan expected to be published in early 2022 will set out government support for supply chain opportunities, skills and jobs in hydrogen.

The sector’s growth is expected to be supported through an approach similar to the Contracts for Difference (CfD) scheme used for the wind sector, which protects developers and consumers from cost volatility.