Government releases Hydrogen Strategy

A new environmental strategy which will play a big part in meeting 2035 carbon reduction targets provides some clarity for local firms, business leaders said today.

The Government has released its Hydrogen Strategy which details investment, technology and jobs to progress the economy to the 2035 target of a 78 per cent reduction in emissions, as well as the 2050 net zero target.

As the UK is hosting the 26th UN Climate Change Conference of the Parties (COP26), later this year in Glasgow, the Government must show leadership to help influence international action on climate change.

The strategy states 20 to 35 per cent of UK energy consumption could be from hydrogen by 2050, meaning a rapid acceleration and adoption of hydrogen technology is required

£900 million funding has been confirmed for the UK hydrogen sector.

A consultation has been launched to overcome the cost gap between low-carbon hydrogen and fossil fuel produce hydrogen through a £240 million 'Net Zero Hydrogen Fund '.

This aims to protect producers from volatile wholesale prices.

It is predicted that the UK hydrogen sector could create 9,000 jobs and by 2030 attract £4 billion of private investment.

The Government says it will continue to work towards the 2030 ambition of 5GW hydrogen capacity as stated in the Ten Point Plan.

Hydrogen as a means for decarbonisation is expected to play an important role in industry, energy-intensive industries and transport.

However, for transport the amount of funding for hydrogen was not detailed.

Will Hargreaves (pictured), environmental policy lead at Greater Birmingham Chambers of Commerce, said: “The release of this strategy ahead of COP26 gives some clarity to local businesses operating in the sector.

“Hydrogen will play a key role in meeting the legislated 2035 carbon reduction target, amongst a mix of low-carbon energy sources and technology.

“The West Midlands has a strong innovation, manufacturing and transport sectors which can be utilised for producing and adopting hydrogen technology.

“Therefore, the investment from this strategy will provide opportunities for local businesses.

“Hydrogen is part of a multifaceted approach for businesses reducing their emissions. Businesses can find out more on how to decarbonise through our Sustainable Business Series: Net Zero. ”

Se the Hydrogen Strategy here

See the Sustainable Business Series here