We, along with our partners and clients in the Hydrogen sector, will be looking forward to diving into the detail of the Hydrogen Strategy that is set to be launched today.
The Hydrogen Strategy is a critical part of the UK’s green industrial revolution and the need for clear and strategic UK Govt support is essential to unlocking the potential of a thriving and innovative UK-wide hydrogen economy. Although the Hydrogen Strategy is yet to be released the comments published this morning indicate the key targets for UK Govt and, in particular, evidence the UK Govt understanding of the long term benefits and scalability of a Hydrogen economy if intervention/support is committed to in the short term.
Having this long term vision is a must for an industry that has boundless potential but will require regulatory, financial and political support to ensure that opportunities are not lost when investors, consumers or authorities are balancing the economic viability of future Hydrogen projects against other energy solutions. It is therefore pleasing to see what UK Govt considers is achievable not just in 2030 but in 2050:
Hydrogen economy worth £900m by 2030 rising to £13bn by 2050
9,000 high skilled jobs in 2030 increasing to 100,0000 by 2050
20-35% of UK’s energy consumption could be Hydrogen based by 2050
targets for each technology to be supported by technical projects of each technology out to 2050
It is also interesting to see the UK Govt identifying the analogies with the UK offshore wind economy and the successful utilisation of the Contract for Difference (CfD) scheme in creating incentives to protect investors from volatile wholesale prices and consumers from increased costs.
The detail of this scheme and confidence in cost/price protection will be critical for future deployment of certain Hydrogen projects. As such we look forward to working with the industry to support its input into the public consultation (also launched today) on the development of the Hydrogen Business Model. It is not immediately clear from the information provided today when other consultations such as the Net Zero Hydrogen Fund Consultation or Low Carbon Hydrogen Standards Consultation will be published but clearly there remains a lot of detail to be developed and opportunity for the industry to input into the type of funds, technical standards and commercial models needed to achieve the world leading Hydrogen economy both UK Govt and industry are looking to create.
The Burges Salmon Hydrogen Team will be reviewing and digesting the Hydrogen Strategy following its release… watch this space for comments and analysis from our experts on the impact of the Hydrogen Strategy for both the whole of the industry and all of its constituent parts.
UK government launches plan for a world-leading hydrogen economy