Hydrogen Champion Report – Recommendations to government and industry to accelerate the development of the UK hydrogen economy.
Jane Toogood, the Chief Executive of Catalyst Technologies at Johnson Matthey and Co-Chair of the Hydrogen Advisory Council, was appointed in July 2022 as the UK’s Hydrogen Champion by the then Secretary of State for Business, Energy and Industrial Strategy (BEIS).
The Hydrogen Champion is an independent expert advisor, whose purpose is to engage with industry stakeholders and investors to identify barriers and enablers to investment in electrolytic hydrogen projects and Track 1 Carbon Capture Usage and Storage (CCUS) enabled projects, and to make recommendations to the Secretary of State on what government and industry could do to accelerate investment in the hydrogen economy. The scope of work also covers hydrogen demand, transportation and storage and the development of a UK hydrogen supply chain.
Hydrogen presents a significant growth opportunity across all regions of the UK, supporting decarbonisation and improving energy security, while system balancing our renewable power generation. It is also the only route for a significant portion of our existing energy intensive industry to decarbonise. Our natural advantages of plentiful renewable energy from offshore wind and one third of Europe’s potential CO2 storage position the UK for rapid progress.
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The UK Government showed early policy leadership with the publication of our world-leading Hydrogen Strategy in August 2021. BEIS and now the Department for Energy Security and Net Zero (DESNZ) have created a policy framework to develop a hydrogen market that will underpin the next stage of market growth.
Other countries have also mobilised to realise the opportunities presented by hydrogen. In the United States, recent legislation provides very significant government subsidies for low carbon hydrogen production, which risks drawing investment away from the UK. Canada, the EU and individual EU member states are following with ambitious incentives and investment in largescale projects to develop hydrogen production and attract supply chain investment.
Now is the time for further action: significant private sector finance is needed to deliver the UK’s ambitions. While global investors and major industry players have substantial funding available, not least because some industries cannot decarbonise without hydrogen, they are weighing up alternative investment options. Some are prioritising opportunities elsewhere, but a sizable number are waiting to see how projects develop in the UK.
The UK Hydrogen Champion has been tasked with examining whether the UK is really doing everything it can to maintain momentum and realise hydrogen opportunities. Through extensive engagement with over 100 stakeholders, a strong common theme has emerged around the need for greater clarity on upcoming policy decisions for hydrogen users, the funding available and overall delivery of the hydrogen roadmap to 2030 and beyond.
The recommendations in this report are intended to address these policy and regulatory concerns, highlight project challenges, and identify opportunities for industry to contribute more to solutions.
This is an independent report and does not reflect government policy. The case studies quoted or illustrated in this report do not make judgements on the quality or relative importance of the projects. Any reference to such projects has no bearing on their likelihood of selection under current or future subsidy schemes.
Hydrogen Champion Report – Recommendations To Government And Industry To Accelerate The Development Of The UK Hydrogen Economy, March 22, 2023
