This August, the UK published the first ever UK Hydrogen Strategy, alongside key policy detail on how we will support new low carbon hydrogen production and ensure standards are in place to deliver the carbon emissions savings we need to meet net zero. This is the most substantive hydrogen strategy and policy package of its kind in the world and one that places the UK firmly at the forefront of the race to develop hydrogen as a promising replacement for fossil fuels in the global transition to net zero.
By setting out our approach not only for the financial mechanisms that will support new hydrogen production facilities, but also making firm commitments across networks, markets, standards and sector development, this package includes steps that have not been taken elsewhere in the EU or any of its member states.
The UK Hydrogen Strategy sets out the government’s ‘twin-track’ approach to supporting both electrolytic ‘green’ and carbon capture (CCUS)-enabled ‘blue’ hydrogen production. The UK has expertise and assets to support these and other low carbon production routes, helping us drive cost effective supply volumes in the 2020s in line with our 2030 5GW ambition, whilst scaling up electrolytic hydrogen.
We are currently consulting on new policy interventions to support low carbon hydrogen, including the £240m Net Zero Hydrogen Fund, a hydrogen business model to incentivise the production and use of low carbon hydrogen, and a UK standard to ensure the hydrogen production we support is sufficiently low carbon.