The Hydrogen Economy

The Hydrogen Economy

The UK Government has laid out an ambitious strategy to develop a thriving low-carbon hydrogen sector, aiming to achieve 10GW of low-carbon hydrogen production capacity by 2030. This strategy is part of the broader British Energy Security Strategy and is designed to help the UK meet its net-zero emissions target by 2050 and the Sixth Carbon Budget target by 2035.

The strategy outlines a twin-track approach to support both electrolytic 'green' hydrogen and carbon capture, usage, and storage (CCUS)-enabled 'blue' hydrogen production. This approach is intended to rapidly scale up hydrogen production while reducing costs.

HYDRALYSIS aims to add a diversification option, to provide hydrogen when electrolytic 'green' hydrogen is not feasible due to wind or solar deficiencies and at the same time solve a waste problem. 

The government aims to capture the economic benefits of growing the hydrogen economy by supporting innovation, stimulating investment, and developing supply chains and skills. This will create jobs and export opportunities for the UK.

In December 2024, the government provided an update on the progress of the hydrogen strategy. Key policy areas covered in this update include production networks, storage, uses of hydrogen, regulatory frameworks, and sector development. The update also highlighted upcoming opportunities for the hydrogen sector.

The government has committed over £21 million to support seven projects aimed at producing low-carbon hydrogen. These projects, spread across the UK from Suffolk to Shetland, will produce green fuel for buses, trucks, and trains, while also supporting local businesses in transitioning away from natural gas. The projects include the Suffolk Hydrogen project, which will produce green hydrogen for low-carbon service vehicles at the Sizewell C nuclear site, and the Tees Valley Hydrogen project, which will build a new hydrogen refuelling station to support the local transport sector.

The government expects hydrogen to play a vital role in decarbonising businesses and transport as the UK works towards its net-zero targets. By backing the hydrogen industry, the government aims to support over 12,000 jobs and attract up to £11 billion in private investment by 2030.