Business and Energy Secretary Kwasi Kwarteng has set out the UK’s first-ever Hydrogen Strategy, which drives forward the commitments laid out in the Prime Minister’s ambitious 10 Point Plan for a green industrial revolution.
The proposals set the foundation for how the UK government will work with industry to meet its ambition for 5GW of low carbon hydrogen production capacity by 2030 – the equivalent of replacing natural gas in powering around 3 million UK homes each year as well as powering transport and businesses, particularly heavy industry.
A booming, UK-wide hydrogen economy could be worth £900 million and create over 9,000 high-quality jobs by 2030, potentially rising to 100,000 jobs and worth up to £13 billion by 2050. By 2030, hydrogen could play an important role in decarbonising polluting, energy-intensive industries like chemicals, oil refineries, power and heavy transport like shipping, HGV lorries and trains, by helping these sectors move away from fossil fuels. Low-carbon hydrogen provides opportunities for UK companies and workers across our industrial heartlands.
Julie Hirigoyen, Chief Executive at UKGBC, said: “How we decarbonise heat whilst delivering a fair transition for consumers is a fundamental issue for the UK’s built environment, and how our sector can play its part in reaching our national net zero target. The Government’s Hydrogen Strategy today confirms what the CCC has already outlined – we need a range of technologies working at scale.
“As we look to decarbonise across the entire construction and property value chain, hydrogen should be used where it adds most value, such as in certain industrial processes that are otherwise difficult to decarbonise. The Government should also prioritise developing the most sustainable hydrogen sources, rather than production methods which risk undermining progress.
“The future use of hydrogen is just one element of our decarbonisation journey. We urge the Government to release its Heat and Buildings Strategy without delay in order to give the sector both clarity and certainty on what the future of heat will look like. Crucially, now is the time to deliver the right package of incentives and policies to truly deliver fair, effective heat decarbonisation at the scale required.”
Mike Foster, CEO of the Energy and Utilities Alliance (EUA), said the strategy represents a huge step in the right direction for the introduction of the technology, something the heating industry is rallying behind in the decarbonisation process.
“The Government’s commitment to hydrogen is a promising step, which will help to create thousands of jobs and decarbonise homes for millions of consumers with minimal disruption,” he continued.
“We are enthused to see the Government also recognise the role a hydrogen blend into the grid will play in reducing carbon emissions without homeowners needing to change appliances or boilers. It is of great importance that the transition to hydrogen does not cause disruption or large costs to consumers. The blend is a way to significantly reduce emissions with no change, which will in turn leave time for the groundwork to be laid for a seamless switch to 100% hydrogen later on.
“We also welcome Business & Energy Secretary Kwasi Kwarteng’s recognition of hydrogen’s potential for decarbonising heat in homes and commercial buildings across the country.
“Giving consumers choice when it comes to low carbon heating is vital to ensuring all buildings can be suitably decarbonised to hit targets set out by government. Research conducted in our recent report Too Close To Home revealed 72% of homeowners supported efforts of UK manufacturers to develop low carbon gas boilers, such as hydrogen boilers. The establishment of a Hydrogen Strategy will be to ensure this consumer sentiment is met, and disruption is limited in the renewable transition.
“The creation of jobs is a welcome aspect of the strategy but will also play a part in the preservation of jobs for the over 120,000 gas engineers working across the UK. Likely requiring only one extra module to be taken on the compulsory Gas Safe engineering qualification, the installation and servicing of hydrogen-ready boilers is set to be very similar to their traditional counterparts. Given heating installers will play an integral role in preparing for the transition should the decision be made in 2026, it is vital that their jobs are protected as part of renewable development.
“We in the heating industry are committed to do all that we can to work with the Government ahead of its decision in 2026 on the role of hydrogen in decarbonising heat. A number of EUA members have been at the forefront of developing hydrogen heating technologies to ease the transition for homeowners and ensure cost to them is no more than with natural gas equivalents. With the establishment of this strategy, UK consumers and businesses have more choice across low-carbon energy mix, an integral part of ensuring no one is left being in the renewable transition.”
