UK accelerates green hydrogen plans amid rising gas prices

Posted on 20 July 2022

​Britain is accelerating its policy plans to support the development of the green hydrogen industry as the Government explores ways to reduce dependence on imported natural gas.

The UK recently announced a new round of subsidies for hydrogen technology. Jane Toogood, an executive at Johnson Matthey Plc, was recently appointed as a Hydrogen Champion to connect the gap between businesses and the government.

The UK intends to use its expanding fleet of wind farms to generate hydrogen and replace the reliance on the fossil fuels industry. Countries across Europe are exploring ways to reduce gas consumption in the short term, minimising the dependence on Russia and curbing overall emissions in the long term. Kwasi Kwarteng, the Business and Energy Secretary, explains that with the right investment, the UK can utilise the significant potential of hydrogen by re-industrialising our economy and putting an end to our dependence on costly fossil fuels.

Gas storage facilities managed by SSE Pl and Centrica Plc have been highlighted for conversions to store hydrogen in the future. The fuel could be produced in nearby heavy industrial hubs. Carbon capture and storage technology will also be integrated into these areas.

Aside from focusing on hydrogen, the UK also announced a champion for offshore wind. Tim Pick met with a range of businesses to explore carbon capture investment last month.

The latest round of funding expands on the government’s hydrogen strategy published last year that intends to capitalise on £9 billion of investment. The government has introduced a target to deploy 1 GW of electrolysers by 2025, a target that will require an action plan very soon.

To stimulate the investment, the UK launched a £240 million Net Zero Hydrogen Fund, as well as the Hydrogen Business Model, a system that subsidises revenue for hydrogen producers.

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