The role of hydrogen in powering industry | APPG

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1. The Government must continue to expand beyond its existing commitments of 5GW production in the forthcoming Hydrogen Strategy. This should mirror industry’s ambition for hydrogen and support the creation of green jobs for the UK economy.

2. Any forthcoming Government and devolved policies must be complementary of the wider UK low-carbon commitments. Government departments must work together in creating streamlined, ambitious strategies to support the overall delivery of hydrogen at scale, supporting the implementation of both blue and green hydrogen.

3. The Government must commit to incentivising hydrogen production within the UK as opposed to importing this. This will be key in creating and sustaining green jobs across the UK whilst maximising supply chain opportunities and supporting the Government’s levelling up ambitions. This must be supported through the right training, skills, and research to coincide with the introduction of the emerging hydrogen economy.

4. The Government must align hydrogen production pathways with nuclear technology to enhance hydrogen production. Strategic planning will be required to store and transport hydrogen safely and efficiently.

5. A UK wide hydrogen network to support the transport sector is required, including a largerscale implementation of hydrogen refuelling stations. The Government must develop incentives to help shipping and other transport organisations move away from diesel fuels to hydrogen alternatives.

6. Industrial clusters will be the key catalyst for driving forward the UK’s decarbonisation of industry with hydrogen and should be an immediate priority for the Government. These clusters can take advantage of economies of scale and sharing a common infrastructure.

7. Changes in regulation by the Government are required to support hydrogen’s role in powering industry. This includes blending hydrogen and amending the Gas Safety Management Regulations to allow hydrogen injection in the domestic grid. This should be further supported through providing the market with clear signals of using hydrogen technology such as mandating the development of hydrogen-ready boilers and meters by 2025.

8. For hydrogen to expand in the UK, a technology neutral approach is required for all types of energy systems. This must ensure a level playing field exists to support hydrogen and maximise the complementary technologies in achieving net zero. Carbon contracts for difference will be an important instrument to reward climate-friendly technologies.

9. Significant and long-term financial support is required for the development, deployment and operation of hydrogen technologies. This must include the funding available for shovel-ready hydrogen projects.

10. Ofgem must ensure the hydrogen market is subject to effective competition to drive down prices for consumers.