Proposal reportedly mooted for inclusion in Hydrogen Strategy, but campaigners warn low carbon hydrogen should be earmarked for decarbonising heavy industry rather than domestic heating. Proposals to introduce a ‘hydrogen levy’ on UK household gas bills in order to subsidise the production of low carbon hydrogen are being considered in Downing Street as part of plans to decarbonise the UK gas grid, media reports today suggest. A consultation over the proposal, which is aimed at growing the nascent low carbon hydrogen market in the UK, is slated for inclusion in the government’s long-awaited Hydrogen Strategy, which is now expected to be published next week, the Financial Times reported yesterday. The document is expected to set out how the government intends to incentivise and subsidise the UK’s low carbon hydrogen market, covering both ‘blue’ hydrogen produced from fossil fuels with carbon capture and storage technology, and ‘green’ hydrogen made using renewable energy to split water into its component elements.
Business Green 28th July 2021 read more »