Region’s hydrogen industries welcome government strategy

Leaders of the North West Hydrogen Alliance have welcomed the Government’s first hydrogen strategy but called on it to back its plans by supporting the region’s hydrogen industry.

The Government said tens of thousands of jobs, billions of pounds in investment and new export opportunities will be unlocked through its plans to create a thriving low carbon hydrogen sector in the UK over the next decade and beyond.

Business and Energy Secretary, Kwasi Kwarteng, outlined the plans which drive 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 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 three million UK homes each year as well as powering transport and businesses, particularly heavy industry.

He said a booming, UK-wide hydrogen economy could be worth £900m and create more than 9,000 high quality jobs by 2030, potentially rising to 100,000 jobs and worth up to £13bn by 2050.

By 2030, hydrogen could play an important role in decarbonising polluting, energy-intensive industries like chemicals, oil refineries, power and heavy transport like shipping, HGV lorries and trains, by helping these sectors move away from fossil fuels.

Low carbon hydrogen provides opportunities for UK companies and workers across our industrial heartlands.

With government analysis suggesting that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based, this new energy source could be critical to meet our targets of net zero emissions by 2050 and cutting emissions by 78% by 2035 – a view shared by the UK’s independent Climate Change Committee.

In the UK, a low carbon hydrogen economy could deliver emissions savings equivalent to the carbon captured by 700 million trees by 2032 and is a key pillar of capitalising on cleaner energy sources as the UK moves away from fossil fuels.

Kwasi Kwarteng said: “Today marks the start of the UK’s hydrogen revolution. This home-grown clean energy source has the potential to transform the way we power our lives and will be essential to tackling climate change and reaching net zero.

“With the potential to provide a third of the UK’s energy in the future, our strategy positions the UK as first in the global race to ramp up hydrogen technology and seize the thousands of jobs and private investment that come with it.”

The Government has launched a public consultation on a preferred hydrogen business model alongside other measures, including:

• Outlining a ‘twin track’ approach to supporting multiple technologies including ‘green’ electrolytic and ‘blue’ carbon capture-enabled hydrogen production, and committing to providing further detail in 2022 on the Government’s production strategy;
• Collaborating with industry to develop a UK standard for low carbon hydrogen giving certainty to producers and users that the hydrogen the UK produces is consistent with net zero while supporting the deployment of hydrogen across the country;
• Undertaking a review to support the development of the necessary network and storage infrastructure to underpin a thriving hydrogen sector;
• Working with industry to assess the safety, technical feasibility, and cost effectiveness of mixing 20% hydrogen into the existing gas supply. Doing so could deliver a seven per cent emissions reduction on natural gas; and
• Launching a hydrogen sector development action plan in early 2022 setting out how the Government will support companies to secure supply chain opportunities, skills and jobs in hydrogen.

The North West Hydrogen Alliance represents 30 of the UK’s most influential organisations driving forward the development of a hydrogen economy. Members include leading UK and global companies such as INOVYN, part of the INEOS Group, Peel NRE, part of Peel L&P, ABB, Atkins, Costain, Mott MacDonald, Uniper and Cadent, the UK’s largest gas distribution network.

Prof Joe Howe, chair of the North West Hydrogen Alliance and executive director, Thornton Research Institute at the University of Chester, said today: “This is a critical step forward for the development of a world leading hydrogen economy in the UK.

“While this sends a strong message to industry and investors that hydrogen is an integral part of our low carbon future, what’s important now is that government delivers on the strategy by supporting projects like HyNet North West.

“We particularly welcome the commitment to developing a Hydrogen Sector Development Action Plan to ensure that the huge economic benefits from hydrogen are kept in the UK, supporting our businesses and creating new jobs.

“If we’re to bring people along with us on this hydrogen revolution then now’s the time to start raising public awareness of hydrogen and how it can help us reduce our carbon emissions and protect our planet.”

This follows the NWHA’s call last year for government to create an independent Net Zero body responsible for driving public opinion on Net Zero.