UK Government must move quickly on hydrogen or risk being left behind, says APPG on Hydrogen

UK Government must move quickly on hydrogen or risk being left behind, says APPG on Hydrogen

A cross-party group of parliamentarians have today urged the UK Government to move quickly on hydrogen and set ambitious policies to unlock investment, create employment opportunities and support the UK’s net zero targets.

The All-Party Parliamentary Group (APPG) on Hydrogen’s report, developed as part of its inquiry into How the UK’s hydrogen sector can help support the UK’s economic recovery, sets out 15 recommendations to support and accelerate the growth of the UK’s hydrogen sector.

These include:

  1. Developing a cross-departmental hydrogen strategy between Government and industry
  2. Using regulatory levers to unlock private sector investment required, including amending the GSMR and expanding the remit of the Bus Service Operator Grant
  3. Setting interim targets for low-carbon hydrogen production by 2030 alongside the introduction of a Low Carbon Obligation to enable investment in low carbon forms of heating such as hydrogen
  4. Mandating hydrogen-ready boilers by 2025
  5. Creating greater incentives in hydrogen alternatives to support organisations and customers who produce, purchase or use hydrogen HGVs, buses and trains
  6. Working with local and regional authorities exploring hydrogen’s potential to support the uptake and commercialisation of existing projects
  7. Setting more ambitious policies and financial targets on hydrogen to meet net-zero by 2050 ahead of other international competitors
  8. Ensuring the UK hydrogen industry plays a major role at COP26, allowing the UK to inspire other nations and sell its products and services
  9. Delivering funding models to create investment and economic jobs directly to the UK
  10. Implementing measures similar to Offshore Wind, such as Contracts for Difference to incentivise industry and scale-up a hydrogen economy.

“The benefits of delivering a hydrogen economy are clear. From reducing carbon emissions, improving air quality to developing the UK’s green economy through the creation of skilled green jobs and strengthening our energy security, hydrogen can play a key role in shaping our future economy and our ability to meet our net-zero targets,” said Chair of the APPG on Hydrogen, Jacob Young MP.

“The UK is a global leader in hydrogen technology and innovation, but with many countries now pressing ahead with national hydrogen strategies, the UK must act quickly or risk falling behind.”

“From my own constituency in Redcar, to Aberdeen, Ballymena and Fife, many businesses are ready to invest in a hydrogen economy, decarbonising industry, power, heat and transport.”

“With the potential to create and sustain hundreds of thousands of high-quality jobs across the country, with the right policies, regulation and support from government, we have the opportunity to build a hydrogen sector for the future.”

The report finds that the UK Government has led the way in establishing its 2050 net zero carbon target, but this ambition will be unachievable without embracing hydrogen as an alternative fuel.

The longer the UK waits to develop a hydrogen strategy and invest in ‘shovel ready’ projects, the more difficult achieving net-zero becomes.

The report can be read in full here.

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