UK Hydrogen Strategy
Otto Simon • August 18, 2021
BEIS launches the UK Hydrogen Strategy
The Department of Business, Energy and Industrial Strategy (BEIS) published their eagerly anticipated Hydrogen Strategy on 17th August, outlining the UK Government’s plan for developing a thriving hydrogen economy to deliver the 5GW production ambition by 2030 and positioning hydrogen to support the UK’s net zero commitments.
The Strategy follows commitments made in the Prime Minister’s 10 Point Plan for the Green Industrial Revolution and expects the UK hydrogen economy to support 9,000 UK jobs and unlock £4bn in investment by 2030; predicting that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based.
A ‘twin-track’ approach will be taken to support multiple technologies including electrolytic and carbon capture-enabled hydrogen production, with further detail expected in 2022 to outline the Government’s production strategy.
Work will be undertaken with industry to assess the safety, technical feasibility, and cost effectiveness of mixing 20% hydrogen into the existing gas supply which could deliver a 7% emissions reduction on natural gas. Otto Simon has been heavily involved in the project undertaken at Keele University to trial the blending of hydrogen and natural gas, and we’re delighted to see government backing further trials.
In addition to £240million of funding committed to the Net Zero Hydrogen Fund, the Government will announce a £105 million funding package through a new Net Zero Innovation Portfolio which is expected to jump start the UK’s low carbon hydrogen economy. It is clear that hydrogen will play a critical role in decarbonising the UK and this investment will help industries to develop low carbon alternatives for industrial fuels, including hydrogen, which will be key to meeting the Government’s climate targets of net zero emissions by 2050 and cutting emissions by 78% by 2035.
Business & Energy Secretary Kwasi Kwarteng said: “Today marks the start of the UK’s hydrogen revolution. 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 Energy & Climate Change Minister Anne-Marie Trevelyan adding: “Today’s Hydrogen Strategy sends a strong signal globally that we are committed to building a thriving low carbon hydrogen economy that could deliver hundreds of thousands of high-quality green jobs, helps millions of homes transition to green energy, support our key industrial heartlands to move away from fossil fuels and bring in significant investment.”
This announcement comes at an important moment, with the United Nationals Climate COP26 Climate Talks due to take place in Glasgow this November.
Otto Simon welcomes the launch of this strategy and looks forward to the additional detail of the UK’s hydrogen production strategy.
As an active member of the North West Hydrogen Alliance, Otto Simon is working at the forefront of technical innovation for the Hydrogen market. We provide engineering expertise to develop feasibility, commercialisation, and process safety studies for utilising blended hydrogen or pure hydrogen as a fuel source. We look forward to supporting the continued development of a hydrogen economy and are hopeful that it will drive the UK towards a greener and cleaner future.
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