ANALYSIS: All eyes on the UK’s hydrogen levy

It has been an unsettled couple of weeks for UK hydrogen policy with the Energy Bill set to head back to Parliament with significant changes and new faces at the top of the Department for Energy Security and Net Zero with Claire Courtinho replacing Grant Shapps, who left after just six months in the job.

In the top line, the Bill heads to parliament today (September 5) with changes to how the industry would be funded, as the government looks to meet its revised 2022 targets of establishing 10GW of low-carbon hydrogen production capacity by 2030, while other Conservative Party fractions mounted an assault to see the levy removed entirely.

Under an amendment, tabled by the former Energy Security and Net Zero Secretary, Grant Shapps, the so-called hydrogen levy would be funded by “gas shippers” – companies that buy and sell gas and arranges its transport – and not households.

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