Hydrogen UK Unveils Manifesto to Propel the UK’s Hydrogen Sector

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Hydrogen UK, a leading trade association in the hydrogen industry, has unveiled a detailed manifesto outlining critical policy recommendations for the incoming government. This manifesto aims to guide the government in unlocking the hydrogen sector's full potential, emphasising the need for immediate and sustained support to drive the industry's growth and economic contribution.

A pivotal recommendation in the manifesto is the creation of a ministerial role dedicated to hydrogen. This position would champion the sector’s growth and facilitate cohesive policymaking across various government departments. Such a role is envisioned to provide a centralised focus and accountability for hydrogen-related initiatives, ensuring that the government’s strategies are aligned and effectively implemented.

To ignite industry momentum, Hydrogen UK stresses the importance of accelerating investment decisions for pioneering hydrogen projects. Clare Jackson, CEO of Hydrogen UK, highlighted the urgency of this action, stating, “Seeing is believing with any innovative technology. To showcase hydrogen’s true value, we must ensure pioneering projects reach final investment decisions as soon as possible. The incoming government must prioritise this within its first 100 days, or risk jeopardising all progress made thus far.”

The manifesto calls for the swift execution of the first Hydrogen Allocation Rounds of the Hydrogen Storage Business Model and Hydrogen Transport Business Model. This step is essential to provide clarity on the regions and projects that will be selected, thereby setting a clear direction for the industry. Additionally, reaffirming the commitment to future Hydrogen Allocation Rounds and releasing the consultation on the hydrogen funding mechanism design are crucial for providing funding certainty. This certainty is vital for instilling investor confidence, which is fundamental for the sector’s growth.

Standardisation is another key aspect addressed in the manifesto. Hydrogen UK advocates for a single standard, such as the Low Carbon Hydrogen Standard, to be adopted across all government departments responsible for hydrogen supply and demand. This would ensure a consistent definition of low carbon hydrogen across all government support mechanisms, streamlining the regulatory environment and making it easier for projects to comply and advance.

Immediate funding for projects within Track-1 of the Cluster Sequencing Process, and the announcement of successful Track-1x projects, are also highlighted as urgent needs. Clear timelines and funding envelopes for Track-2 Projects must be established to maintain the momentum and ensure continuous progress in the sector.

The potential economic impact of the UK hydrogen industry is significant. According to Hydrogen UK’s analysis, the industry could generate 64,000 jobs and contribute over £7 billion in gross value added (GVA) annually by the end of the decade. This substantial economic benefit underscores the importance of timely and decisive government action to support the sector’s development.

Currently, the UK is well-positioned to capitalise on the hydrogen opportunity and emerge as a global leader. Although significant strides have been made in establishing a framework for hydrogen development, the next five years are critical. The sector needs a committed and decisive government that collaborates closely with industry to sustain and build on the progress made.

Hydrogen UK, which boasts over 100 members, has collated a series of key requests for the incoming government. These include doubling the target for low carbon hydrogen production to 10GW and ensuring the first production projects transition to construction promptly. Clare Jackson emphasised, “With a comprehensive strategy in place, the hydrogen sector has outlined what is required from the government to scale up effectively. To do this, it is imperative to get the first production projects over the line and into construction as a matter of urgency.”

The manifesto represents a critical juncture for the UK’s hydrogen industry. Policymakers have a unique opportunity to solidify commitments, accelerate the deployment of hydrogen technology, and ensure the UK remains competitive in the global race. Jackson concluded with a stark warning: “Further delay and stagnation risks net-zero goals, establishing energy security, and ultimately missing out on the economic growth that the industry can bring to the UK.”

In summary, Hydrogen UK’s manifesto is a call to action for the incoming government. By adopting these recommendations, the UK can fully harness the potential of its hydrogen sector, driving economic growth, job creation, and environmental sustainability.

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