The UK Government has set ambitious targets for low-carbon hydrogen production as part of its Net Zero strategy. In support of the strategy, the Government is offering £240 million in investment through the Net Zero Hydrogen Fund which it hopes will bring in further private investment and help to ultimately achieve the goal of 10GW low carbon hydrogen production capacity in the UK by 2030. 

If large-scale hydrogen production can be achieved, it has huge potential for use as a fuel to decarbonise the transport sector. We are already seeing hydrogen used in vehicles, HGVs and buses. We have seen the first hydrogen aircraft and the role of hydrogen and ammonia in shipping is being looked at. We know that airports are considering the role hydrogen can play to decarbonise some of their operations and the first hydrogen trains have been trialed. One potential brake on progress is obtaining permission to build the hydrogen facilities.

We can expect to see multiple hydrogen projects under development over the next few years, each one requiring planning permission and permits. This poses a potential challenge for regulators and stakeholders who will not necessarily be familiar with hydrogen and the significant role it can play.

We surveyed 100 industry participants working for energy companies, infrastructure firms, industry bodies and specialist consultancies to better understand the challenges facing hydrogen projects. Our research confirmed that planning permission can be one of the main blockers on the progress of hydrogen projects, with it taking an average of 20 months to obtain the appropriate consents. The delaying factors can be grouped into four main categories:

• Lack of expertise within planning teams.
• Poor public opinion, in the form of indirect opposition from local residents and a misunderstanding of the risks.
• Technical issues, such as new engineering processes or unproven infrastructure.
• A lack of co-operation between interested parties, either on new projects or around co-locating hydrogen capacity with existing developments.

If the UK is to meet its ambitious targets for hydrogen deployment, action is needed at a national level to reduce delays at the consenting stage. Our industry stakeholders believe that this can be achieved through:

• A comprehensive legislation/policy/guidance framework.
• A wider exercise to educate the public/build support.
• Fewer opportunities for legal challenge/ enabling fast track resolution.

You can read our full report here.

Scaling the adoption of hydrogen as a fuel for low carbon transport and more related topics will be explored at the Interchange conference at The Vox, Birmingham on 18 and 19 April 2023 where Burges Salmon sponsors the Energy Hub.