The UK Government continues to support the UK’s growing hydrogen market, stating that hydrogen will play a vital role in delivering the UK’s commitment to reach net zero by 2050.
The UK is aiming to develop up to 10GW of low carbon hydrogen generation by 2030, with the intention that at least half of this will be from electrolytic hydrogen, drawing on the scale-up of UK offshore wind, other renewables, and new nuclear.
Here are latest developments in the UK hydrogen space:
- The Department for Business, Energy and Industrial Strategy (“BEIS”) has launched the join Hydrogen Business Model (“HBM”) and Net Zero Hydrogen Fund (“NZHF”) allocation round to support electrolytic hydrogen in the UK. Projects can apply for HBM revenue support or they can apply for join HBM revenue support and Capital Expenditure (“CAPEX”) support through the NZHF.
- Hydrogen transport and storage projects operational before 2025 will have access to revenue support from a £100m pot funded by the taxpayer.
- The NZHF’s £240m of funding is available until 2025, and a proportion of this will be delivered to projects also seeking HBM support via the 2022 HBM/ NZHF electrolytic allocation round.
We see this as a positive step in supporting the revenue stack for hydrogen projects and also providing cornerstone funding that help move these project forward through their development life cycle.
Watch our discussion around the UK’s move toward a hydrogen economy, alongside Scotia Gas Networks (SGN), B9 Energy and Macquarie below:
For more information, please contact Terence Amako, Director (Head of New Energies) – Centrus