A report by UK thinktank Onward has said the UK’s proposed ‘hydrogen levy’ would raise the average dual fuel household’s energy bills by £118 ($146) per year and has called for an alternative approach to funding the industry.

Jake Richardson, Head of Energy and Climate at Onward, warned, “The government is walking into a trap with the hydrogen levy.”

Under the UK Government’s proposed Energy Bill, the Hydrogen Production Levy (a tax) is planned to fund ‘all revenue support for low-carbon hydrogen production,’ subject to consultation and support.