The Ten Point Plan for a Green Industrial Revolution - Hydrogen

  • Green Power
  • Published on April 3, 2023

Taken directly from the government's publication - link below.

Hydrogen is the lightest, simplest and most abundant chemical element in the universe. It could provide a clean source of fuel and heat for our homes, transport and industry. The UK already has world-leading electrolyser companies, and unparalleled carbon capture and storage sites that we can maximise. Working with industry the UK is aiming for 5GW of low carbon hydrogen production capacity by 2030. Hubs where renewable energy, CCUS and hydrogen congregate will put our industrial ‘SuperPlaces’ at the forefront of technological development. We are also pioneering hydrogen heating trials, starting with a Hydrogen Neighbourhood and scaling up to a potential Hydrogen Town before the end of this decade.

Working alongside partners in industry, our aim is for the UK to develop 5GW of low carbon hydrogen production capacity by 2030 that could see the UK benefit from around 8,000 jobs across our industrial heartlands and beyond. This will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and setting out next year, our hydrogen business models and a revenue mechanism for them to bring through private sector investment.

The UK is already a world leader in investigating the use of hydrogen for heating, replacing fossil fuels like natural gas with hydrogen and hydrogen blends. We are keen to accelerate this work and support industry. For example, Ofgem will publish details later this month on the proposed network demonstration in the Levenmouth area of Fife, intended to provide hydrogen to 300 homes over a 4-year period. Simultaneously, we are scaling-up the electric heat pump market, ensuring we can exploit a range of low carbon heating options available for UK consumers.

Producing low carbon hydrogen at scale will be made possible by carbon capture and storage infrastructure, and we plan to grow both of these new British industries side by side so our industrial ‘SuperPlaces’ are envied around the world. We will also build on our success in offshore wind and other renewables, to bring forward the zero-carbon hydrogen of the future. Together this will develop resilient supply chains, support jobs and position UK companies at the forefront of an exciting growing global market, as well help things like industrial processes, industrial heat, power, shipping and trucking to make the shift to net zero.

Driving the growth of low carbon hydrogen could deliver……

  • support for up to 8,000 jobs by 2030, potentially unlocking up to 100,000 jobs by 2050 in a high hydrogen net zero scenario
  • over £4 billion of private investment in the period up to 2030
  • savings of 41 MtCO2e between 2023 and 2032, or 9% of 2018 UK emissions

Policy impacts

  • aiming for 5GW hydrogen production capacity by 2030 in partnership with industry
  • lower carbon heating and cooking with no change in experience for domestic consumers through hydrogen blends and reducing the emissions of the gas used by up to 7%

Target milestones

  • 2021: Publish our Hydrogen Strategy and begin consultation on government’s preferred business models for hydrogen
  • 2022: Finalise hydrogen business models
  • 2023: Work with industry to complete testing necessary to allow up to 20% blending of hydrogen into the gas distribution grid for all homes on the gas grid
  • 2023: By 2023 we will support industry to begin hydrogen heating trials in a local neighbourhood
  • 2025: We hope to see 1GW of Hydrogen production capacity
  • 2025: Will support industry to begin a large village hydrogen heating trial, and set out plans for a possible pilot hydrogen town before the end of the decade

Case study: ITM POWER

ITM Power is a manufacturer of PEM (proton exchange membrane) electrolysers, a technology which enables the generation of hydrogen from water and are active in projects in the UK and throughout Europe. The company is based in Sheffield. Coupled with a renewable energy supply, this production method is capable of producing zero carbon hydrogen. The Gigastack project explores the potential to scale up electrolyser size and integrate those units with offshore wind facilities. BEIS is currently supporting a consortium led by ITM Power along with Orsted, Phillips 66, and Element Energy through its Low Carbon Hydrogen Supply Programme.