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Viewpoints

| 1 minute read

Green hydrogen developments

It is good news that hydrogen facilities have opened this year in the UK, and they are testament to increased institutional funding in the sector. They also embody the British Energy Security Strategy for 10GW of low carbon hydrogen production capacity by 2030, as part of the UK’s plans for net-zero (with commitment to hydrogen restated in the Powering Up Britain statement in March 2023). However, the infrastructure around the hydrogen industry still needs more development to be sufficiently scaleable in the short and long term.

The infrastructure, materials and technology constituting the supply chain for hydrogen continue to present both opportunities for economic development but also hurdles to hydrogen production. For example, hydrogen storage and transport, electricity generation and grid capacity, and the development of broad end-user demand, are all key issues which need consideration. More support from the UK government is needed to enable companies to expand their hydrogen capacity and capability.

The regulatory landscape in the UK for hydrogen is also far from clear; the government’s efforts to develop a framework for monitoring and controlling hydrogen is ongoing, and it should allow for the flexibility and legal consistency that will be needed for a mature hydrogen network.

As governments look to reduce their emissions they are eyeing the low-carbon hydrogen as a clean alternative fuel for energy-intensive industries, transport and power stations

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energy, sustainability and esg, banking and finance