UK government launches plan for a world-leading hydrogen economy. First-ever vision to kick start world-leading hydrogen economy set to support over 9,000 UK jobs and unlock £4 billion investment by 2030. The UK’s first-ever Hydrogen Strategy drives forward the commitments laid out in the Prime Minister’s ambitious 10 Point Plan for a green industrial revolution by setting the foundation for how the UK government will work with industry to meet its ambition for 5GW of low carbon hydrogen production capacity by 2030 – which could replace natural gas in powering around 3 million UK homes each year as well as powering transport and businesses, particularly heavy industry.
BEIS 17th Aug 2021 read more »
About 3 million households in the UK could begin using low-carbon hydrogen to heat their homes and cook rather than fossil fuel gas under government proposals to attract at least £4bn of investment to the hydrogen economy by 2030. The government has published its long-awaited plans for a UK-wide hydrogen economy, which it says could be worth £900m and create more than 9,000 high-quality jobs by the end of the decade, rising to £13bn and 100,000 new jobs by 2050. The strategy document lays out its efforts to attract investment in 5 gigawatts of hydrogen production by 2030. It suggests hydrogen could cover 20-35% of the UK’s energy consumption by 2050, providing a clean alternative to oil and gas in energy-intensive industries, power and transport. The plans remain dogged by uncertainty over how the government will determine a fair subsidy for the multibillion-pound projects and whether the cost will be shouldered through household bills or by the Treasury. The government has promised more clarity after an industry consultation later this year. Doug Parr, the chief scientist for Greenpeace UK, warned that producing large quantities of hydrogen from fossil gas would lock the UK “into costly infrastructure that is expensive and … may be higher carbon than just burning the gas”. Dan McGrail, the chief executive of RenewableUK, said the national strategy “doesn’t focus nearly enough on developing the UK’s world-leading green hydrogen industry” and should “set out a clear ambition for green hydrogen”. “We’re urging the government to set a target of 5GW of renewable hydrogen electrolyser capacity by 2030 as well as setting out a roadmap to get us there, to show greater leadership on tackling climate change,” he said.
Guardian 17th Aug 2021 read more »
The UK government is to spend just over £100m to “kickstart a world-leading hydrogen economy”, which it hopes will help the fuel become a major energy source and play a significant role in decarbonising heavy industry. However, there are already mounting concerns about how hydrogen-based fuels are produced and their overall impact on the environment. Greenpeace also voiced concerns over the government’s support for blue hydrogen.
Independent 17th Aug 2021 read more »
Hydrogen to fuel planes, trains and home heating gets a subsidy boost as part of green future plans. By 2030 ministers hope the UK will be capable of producing 5GW of “low-carbon” hydrogen a year, enough to wean 3 million households off gas use if it was all put to that purpose. It is not yet clear whether the subsidy will come from general taxation or – as in the case of offshore wind – a levy on consumer energy bills. But doubts remain over the government’s decision to support ‘blue’ hydrogen, which a peer-reviewed study last week suggested is more polluting than just using natural gas directly. Many environmentalists say the UK should focusing on supporting the development of green hydrogen for limited uses, and abandon plans to use blue hydrogen for home heating.
iNews 17th Aug 2021 read more »
Billions of pounds of households’ money is to be funnelled into hydrogen production as Britain battles to create a market in the clean-burning gas. Manufacturers are in line to be guaranteed a price for their hydrogen by the Government so they do not have to sell to consumers at a loss, under plans unveiled in consultation papers on Tuesday. The subsidy is expected to be funded through either higher bills or with money from the public purse. Hydrogen fuel is viewed as a key technology by officials racing to meet Boris Johnson’s target of net zero carbon emissions by 2050. Millions of households are likely to have hydrogen boilers installed, replacing natural gas, and heavy vehicles such as lorries or aeroplanes will in future run on hydrogen instead of diesel. Officials have not said how much they think the subsidy scheme might cost. The Treasury is yet to publish a long-awaited review on the price tag for reaching climate goals amid concern over the impact on bills. The plans, which remain subject to consultation, are part of a strategy Government is publishing on Tuesday on the future of hydrogen in the national energy mix. The gas does not produce carbon dioxide when burned. The Government’s strategy published today says that hydrogen could meet 20-35pc of the UK’s energy demand by 2050, compared to a tiny negligible amount currently, and it wants the UK to be producing 5GW by 2030. Officials claim this could create more than 9,000 UK jobs and unlock £4bn investment by 2030, potentially rising to 100,000 jobs by 2050. Government says that about 45TWh of UK buildings’ heating might be supplied by hydrogen in 2035. Currently, about 434TWh of energy is used each year to heat UK homes.
Telegraph 17th Aug 2021 read more »
Energy bills could soar under ‘green gas’ hydrogen homes plan. Subsidy to pay for hydrogen boilers could come at a heavy price for consumers, even as experts warn that the expense may be ‘pointless’. Homeowners face higher energy bills to pay for greener gas that could be used to heat just 10 per cent of the country’s homes. The Government will announce on Tuesday that it wants a subsidy scheme to help fund its ambition to produce 5 gigawatts of hydrogen for use in heavy industry, transport and home heating by 2030. The scheme will be modelled on subsidies that were key to boosting the UK’s offshore wind industry over the past decade, which are levied on electricity bills. The plans could see bills rise for everyone, although hydrogen is likely to play only a niche role in meeting the Government’s targets to cut the carbon emissions produced by home heating. Alternative plans could see costs added to general taxation. The Government expects hydrogen to provide enough energy for 67,000 homes, or 0.2 per cent, by 2030, rising to meet up to 10 per cent of domestic heating demand by 2035. Experts on Monday said there was a risk that bill payers could be locked into paying for the development of “pointless” technology.
Telegraph 16th Aug 2021 read more »
Household gas bills are expected to rise under plans to switch more than a third of Britain’s energy use to low-carbon hydrogen gas within 30 years. The government has said that hydrogen will play a “critical” role in meeting Boris Johnson’s pledge to hit net-zero emissions by 2050 and that subsidies could be paid to producers to fund the transition and boost the amount of the gas being made in Britain. A government consultation opened today states that costs could be “passed on to consumers through energy bills” in a similar way to the system of subsidies for wind power, which ultimately led to a significant fall in the cost of renewable energy.
Times 17th Aug 2021 read more »
‘Today marks the start of the UK’s hydrogen revolution’ – Westminster publishes Hydrogen Strategy.
Energy Voice 17th Aug 2021 read more »
Both ‘blue’ and ‘green’ hydrogen to form part of long-awaited Hydrogen Strategy, which proposes CfD-like scheme to scale up production towards 5GW 2030 goal. The government has offered the deepest glimpse yet of its vision for harnessing hydrogen to decarbonise the UK economy, today setting out its vision for a “twin track” approach that leaves the door open for production of the energy source from both renewable electricity and fossil fuels. Touting a flurry of consultations today, it said a “booming, UK-wide” hydrogen economy could play a key role in replacing fossil fuels in energy intensive industries such as chemicals, oil refineries, and power, as well as in heavy transport such as shipping, heavy goods vehicles (HGVS) and trains.
Business Green 17th Aug 2021 read more »
The UK Government has today (17 August) published its much-awaited Hydrogen Strategy, outlining plans to unlock £4bn of investment in blue and green generation, storage and usage this decade. Building on the initial commitment of £500m to the hydrogen sector made through the Ten-Point Plan last year, the Strategy states that, in the best-case scenario, the UK’s hydrogen sector could grow to create 9,000 jobs and attract £4bn of private investment by 2030. The Strategy details plans for scaling up hydrogen production and consumption domestically and is based on a forecast that some 20-35% of the nation’s energy consumption could be met with hydrogen by 2050. This is a higher proportion than the global average of 10% forecast by Bloomberg Intelligence. BEIS has stated that it will take a “twin-track” approach, supporting both green and blue hydrogen. The strategy commits BEIS to reviewing the development support needed to grow the hydrogen storage sector and to trialling 20% hydrogen blends in the existing gas supply. At present, blending is limited to 23%. Beyond this point, infrastructure and appliances will likely need to be upgraded.
Edie 17th Aug 2021 read more »
Thousands of new jobs could be created by investing in clean hydrogen fuel to power vehicles and heat homes, the government says. Ministers have unveiled a strategy for kick-starting a hydrogen industry, which they say could attract billions of pounds in investment. Business Secretary Kwasi Kwarteng said the fuel was also essential for UK efforts to reach net zero emissions. He said it had the potential to provide a third of UK energy in future. Because of the current higher cost involved in producing hydrogen compared to existing fuels, subsidies are been proposed to overcome the gap. The government has launched a consultation on this plan. Labour also backs hydrogen’s potential, but said the government had failed to invest as much as other countries. Using hydrogen gas as a fuel produces only water as a by-product, rather than greenhouse gases such as CO2, which are harmful for the climate. It can be used to power fuel cells – devices that generate electricity through an electrochemical reaction – used in a turbine for electricity or burned in a boiler and vehicle engine. As such, it is a clean, versatile energy source that could power cars, trucks and trains, heat our homes and generate the power needed for industrial processes such as steel production. The government plans to deliver 5GW of hydrogen production capacity by 2030, estimating that the industry could be worth £900m and support more than 9,000 jobs by the same date. The potential role of hydrogen in achieving this target has been highlighted by a government analysis suggesting 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based. The government is proposing subsidies for the hydrogen industry along the lines of those credited with driving down the cost of offshore wind power. It will also review the infrastructure – thought by some to be very costly – needed to underpin hydrogen power in the UK. Ministers want a twin-track approach to hydrogen production. Dr Jan Rosenow, from the Regulatory Assistance Project, an organisation dedicated towards accelerating the transition to clean energy, said: “As the strategy admits, there won’t be significant quantities of low-carbon hydrogen for some time. We need to use it where there are few alternatives and not as a like-for-like replacement of gas. He said the plan confirmed that “hydrogen for heating our homes will not play a significant role before 2030. The government’s strategy shows that less than 0.2% of all homes are expected to use hydrogen to keep warm in the next decade. This means that for reducing emissions this decade, hydrogen will play only a very marginal role. “But we cannot wait until 2030 before bringing down emissions from heating. The urgency of the climate crisis requires bold policy action now.”
BBC 17th Aug 2021 read more »
Energy and Climate Intelligence Unit (ECIU) analyst Jess Ralston said: “A strong hydrogen economy in the UK could cement our place as a green industrial leader if the right action is taken early. The fuel could be very valuable for cleaning up steel production and protecting jobs in this industry – crucial when Europe is already steaming ahead with 23 hydrogen steel plants when we have none. But some questions remain over whether the Government has truly grasped which areas will be most suitable for hydrogen use and which will not. For example, the case for hydrogen for home heating is far from proven, particularly hydrogen derived from fossil gas rather than from renewable energy. After all, any remaining fossil gas with a hydrogen blend in the grid is just not compatible with net-zero and it’s not yet clear how effective hydrogen will be, nor how much it will cost.”
Edie 17th Aug 2021 read more »
Discussions on how to bridge the gap between the high cost of producing low-carbon hydrogen and the affordable purchase price of industries that currently rely on cheaper fossil fuels will be held by the Ministry of Business Innovation and Skills on Tuesday. It will start. The government seeks views on whether subsidies should be met from general taxation or by additional charges for household energy charges. Ministers also aimed to help reduce carbon emissions from a wide range of sectors, from heavy industry to home heating, in addition to creating 9,000 “high quality” jobs by the end of the decade. Announced the first hydrogen strategy.
FT 16th Aug 2021 read more »