The UK government has unveiled a strategy to reach a capacity of 5GW of low-carbon hydrogen by 2030 as the country looks to move away from fossil fuels.
UK business secretary Kwasi Kwarteng. Credit: Kwasi Kwarteng via Twitter
Business secretary Kwasi Kwarteng (pictured) unveiled this new strategy on August 17. Credit: Kwasi Kwarteng via Twitter
The government's aims are to make renewable hydrogen as cheap to produce as natural gas as to aid in the decarbonisation of heavy industry and transport as well as aiding in the powering of at least three million homes.
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Ministers will be looking to invest in both green and blue hydrogen, generated through electrolysis and carbon capture, respectively, in what it refers to as a "twin-track" for hydrogen production.
Government data suggests as anywhere between 35-50% of the UK's energy consumption could consist of hydrogen by 2050. Current plans are to decarbonise all UK industry within the same time frame, with shorter-term goals of reducing emissions by 78% by 2035, though whether these goals are attenable remain to be seen.
Business secretary Kwasi Kwarteng revealed this plan could bring in 9,000 "high-quality" jobs. Further details on the government strategy are set to be revealed in 2022.
"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," he added.
The UK-wide hydrogen economy could be worth £900 million (€1.05 billion) by 2030, with the potential to rise to £13 billion (€15.2 billion) by 2050.
The scheme has also seen the launch of a public consultation on a preferred hydrogen business model to help overcome the gap between fossil fuels and renewable energy and should stand to incentivise investment in greener sources.
The government also hopes to set up a national standard for low-carbon hydrogen to ensure businesses and consumers the end-product meets Britain's net-zero standards and is currently devising a £240m Net Zero Hydrogen Fund, which aims to support the commercial deployment of new low carbon hydrogen production plants across the UK.
Several UK energy companies have welcomed this news as the UK looks to shift its economy away from fossil fuels.
SSE CEO Alistair Phillips-Davies said: "We strongly welcome the publication of this first-ever Hydrogen Strategy and hope to turn this encouraging strategy into firm and rapid action through our exciting plans.
"These include working with Equinor on the world’s first major hydrogen-fired power station at Keadby and developing hydrogen storage caverns at Aldbrough, as well as our partnership with Siemens to co-locate hydrogen production facilities at our wind farms.
"The strategy is a welcome first step to realising the potential of hydrogen."
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Frank Gordon, the director for policy at the Association for Renewable Energy and Clean Technology ( REA ) referred to the bill as "welcome clarity."
His firm has urged the government to consider pathways for renewable generation, and this provides a "more positive outlook" for Britain's net-zero future.
"Backed up by the Net Zero Hydrogen Fund, a revenue support scheme for hydrogen production and a standard methodology to define when hydrogen is a low carbon, we believe this Strategy can provide a stimulus for British-based hydrogen production over the coming years," he added.
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