From second internationally in 2021 to eighth in 2023, the International Hydrogen Progress Index from ENA (Energy Networks Association) and Hydrogen UK reports that despite a doubling of the production capacity target, and having the most mature portfolio of projects, the UK has been slow to finalise the policies and supporting mechanisms required to take hydrogen projects forward.
According to the index, in 2021, guided by a hydrogen strategy from government that set out commitments, proposals for funding arrangements and timelines, the UK was second to South Korea in making progress towards using hydrogen to achieve net zero goals.
Since then, missed opportunities to pass necessary legislation and political uncertainty around the policies and funding arrangements to support the UK’s hydrogen roll-out means that no major projects have progressed to the ‘Final Investment Decision’ stage in that time.
“Policy delays and lack of clarity from government has slowed the progression of low-carbon hydrogen projects,” Clare Jackson, CEO of Hydrogen UK said in a statement. “We are still waiting for the Energy Bill to be passed, which was introduced to Parliament over a year ago. The UK has the capability and innovation to be a global hydrogen leader, and we urge government to prioritise our recommendations to achieve this.”
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Some progress has been made, but the USA, Germany, Japan, Canada, the Netherlands and France, have leap-frogged the UK at a time when competition to attract international investment in energy infrastructure has increased.
The US has issued a Notice of Intent to invest up to $1bn in an initiative to support Regional Clean Hydrogen Hubs and introduced a subsidy of up to $3 per kg of clean hydrogen depending on production conditions. In Europe, Germany is now set to deliver €7bn in government investments earmarked for developing green hydrogen.
To regain the momentum, ENA’s gas members and Hydrogen UK have set out recommendations for industry and government to deliver growth, namely to move faster and be more flexible with production support, identify and support strategic infrastructure investment now, and maximise the significant economic opportunity on offer by stimulating domestic supply chains. ENA and Hydrogen UK also call for clarity on the minimum roles for hydrogen in industry, power, transport and heat, with support measures to make high-carbon expensive and low-carbon low cost.
Silvia Simon, head of hydrogen, ENA, said: “The UK was streets ahead of the global competition in 2021 in the race to use hydrogen to help build a decarbonised energy system, but UK industry has been forced to watch other countries catch up and risk leaving us behind. The hydrogen industry wants to continue to work closely with government to jointly deliver a long-term vision for a decarbonised UK. By working together we can regain pole position.”
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