Leading manufacturers have applauded the Government’s new Hydrogen Strategy, a key feature in the Prime Minister’s ambitious green industrial revolution proposals.
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.
Jeff House, Head of External Affairs at Baxi Heating, said: “The energy transition is upon us and we are shifting today’s energy use to low and zero carbon sources. The way in which we heat and provide hot water to our homes and businesses will change, and we are developing technologies that will support this transition. A bold and pragmatic policy framework will encourage investment and drive change.
“As an energy carrier, hydrogen has many uses that will help to decarbonise heating, transport and industry. We therefore welcome the government’s assurance to the the public today that hydrogen can be made as safe as natural gas.
“Alongside the Strategy, the Government is publishing its proposed business model for supporting hydrogen production in the form of a Contract for Difference. This approach has been utilised successfully for offshore wind and will enable the sector to invest in early-stage projects and reduce the cost of hydrogen. The availability of low-cost hydrogen at scale is a key enabler of the deployment of hydrogen for heat.
“We believe there is no ‘one size fits all’ solution, and a whole range of heating technologies will need to be deployed for a range of properties. Baxi Heating, as part of BDR Thermea Group, is at the forefront of developing clean heating solutions, including our ground-breaking development of hydrogen boilers.
“Our work with the Hy4Heat project and associated demonstration sites in the UK show technical feasibility of this solution. We believe the Government should act upon advice from the Climate Change Committee and other sources advocating a mandate that all boiler sales from 2025 should be hydrogen-ready in order to help pre-populate a swathe of the housing stock ready for a future conversion.
“Technology, energy efficiency and business models are all bit parts in the wider picture. Skilled installers and contractors will be utterly essential to success, so we are glad to see the announcement of a hydrogen sector development action plan in early 2022 setting out how the government will support companies to secure supply chain opportunities, skills and jobs in hydrogen.”
Clare Jackson, Head of Innovation – Low Carbon for Gemserv, said the strategy fires the starting gun on the scaling of hydrogen solutions in the UK.
“This is great news for the industry, but it is just the first step in a very long journey to establishing hydrogen as a key part of our future energy systems and enable the UK to cost-effectively deliver net zero,” she added.
Gemserv said key points from the announcement for the wider industry to take on board include:
- Creating a hydrogen economy is vital to hit our climate targets and drive forward green, economic growth and ensure we avoid being left behind in the international hydrogen race.
- The UK needs its own ambitious hydrogen strategy to help to maintain our global leadership position as well as deliver long-term benefits to homes and businesses across the country.
- Hydrogen is a holistic low-carbon solution, which is ready for deployment.
- Supporting hydrogen will help deliver a green recovery and ‘level up’ the UK’s regions.
- Hydrogen has the potential to be a world-leading export for the UK.
- Once policy and regulation align, we can work together with a positive vision of decarbonising efficiently with least disruption and delivering benefits to homes and businesses across the country.
Mark Wilkins, Technologies and Training Director comments on the Government’s release of the Hydrogen Strategy, said green gas is playing an important role in decarbonising heat in buildings and achieving the UK's net zero targets.
“The introduction of up to 20% hydrogen gas into the wider natural gas network is a positive first step to begin the UK’s hydrogen journey and this strategy provides key milestones to build the network progressively up to 100% hydrogen,” he added.
“Currently, there are 26 million homes in the UK, so during this decade trials and testing are fundamental to achieve our decarbonisation goals. The 2030s will begin wider roll outs and further trials but as outlined in the strategy the hydrogen transition may take several decades. At Vaillant we fully support hydrogen as a heating solution and are developing hydrogen-ready appliances ahead of the Government’s strategic decision on the role of hydrogen for home heating to be taken by 2026.
“The fact remains that climate change is happening now, and at Vaillant, we believe there will be no silver bullet solution and there will be a mix of technologies needed to help reduce emissions. Heat pumps are a tried and tested alternative low carbon heating solution that is available today. Whilst we are working with the industry to bring hydrogen solutions for home heating, homeowners, installers and housebuilders should look to start their decarbonisation journey with heat pumps. We are eager to see more clarity on heat pump funding and hydrogen within the long-awaited Heat and Buildings Strategy in September. We look forward to continuing to support the Government in achieving the UK’s ambitious net zero targets.”
Meanwhile, Matthew Fell, CBI Chief Policy Director, said: “As a leader in high skilled manufacturing, and with an extensive legacy in energy production, the UK stands perfectly positioned to capitalise on the opportunities provided by hydrogen. Confirmation of both a business model consultation and the launch of an action plan for developing the hydrogen sector are important steps that will alleviate uncertainty in the market and provide the confidence boost private investors are looking for.
“However, to truly capitalise on those large-scale economic opportunities, and unlock the private sector finance needed, firms will now be looking for the government to provide detailed policies and standards for hydrogen production and application.
“With its cross-economy applications in the transition to net-zero, firms will be looking to the Government to make ambitious commitments on hydrogen testing and demonstration projects in the upcoming Comprehensive Spending Review – as well as clearly identifying its role in decarbonising the UK’s heat system through the Heat and Buildings Strategy.
“As the countdown to COP 26 continues, hydrogen is an area where the UK can lead by example on the global stage, showcasing the value of strong partnerships between government and the private sector on the road to reducing emissions.”
