Johnson Matthey chief says UK has fallen behind in hydrogen energy race.
The UK has misplaced its place as one of many leaders within the world race to develop hydrogen energy, the chief government of Johnson Matthey has warned, as he mentioned the FTSE 100 group may take extra enterprise to the US as Washington unleashes funding for inexperienced tasks.
Liam Condon mentioned companies would bypass the UK if the nation didn’t introduce extra supportive insurance policies, and that an “incredible bureaucratic layer” was holding Europe again from growing the infrastructure wanted to help hydrogen energy.
Liam Condon, said:
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The UK was a frontrunner [in supporting hydrogen power.
Mentioned Condon, who since taking up Johnson Matthey in March has set out a plan for the 205-year-old industrial conglomerate to concentrate on growing sustainable applied sciences.
“But we’ve now got to keep competitive with US policies, which have clearly moved ahead,” he advised the Financial Times. “Otherwise, investment will simply drift off to the US.”
Many international locations have regarded to hydrogen energy as they set decarbonisation targets to satisfy local weather targets. The UK, which is aiming to realize internet zero emissions by the center of the century, declared its ambition in 2019 to develop into “a world-leading hydrogen economy”, because it introduced £105mn in funding for companies to develop low-carbon fuels.
But in current months companies have turned to the US, the place the Senate in August handed the $369bn Inflation Reduction Act to help clear power programmes, which incorporates tax credit for hydrogen tasks.
Condon mentioned Johnson Matthey, which manufactures gasoline cell elements and catalysts for producing hydrogen energy, is “reviewing additional investments” within the US because it anticipates rising demand within the nation, including that the group remained dedicated to the UK.
“The money is there, the intent is there . . . but there’s an incredible bureaucratic layer that slows down that money actually getting to the companies,” he mentioned. “It’s unlikely that any single private company can afford to build the infrastructure [to support a net zero economy]. So there needs to be governmental support.”
Johnson Matthey is doubling down on hydrogen following an ill-fated transfer into manufacturing chemical compounds for electrical automotive batteries. The group introduced an exit from the enterprise this yr, months after touting it to traders as pivotal to future progress.
Condon, who joined Johnson Matthey after Robert MacLeod stepped down as CEO within the wake of the fiasco, admitted that earlier administration had dedicated a “cardinal sin” by coming into the enterprise earlier than securing any prospects.
He mentioned the group, which has provided know-how to the hydrogen trade for a number of years, will now concentrate on core companies and areas the place it may be a market chief.
Johnson Matthey hoped to generate £300mn from the sale of as much as 4 extra subsidiaries, Condon added, together with its companies producing medical machine elements and measuring devices.
Pursuing battery supplies “turned out to be a bad business decision”, he mentioned. “But the lessons out of that were really important . . . for the new strategy and to put in place principles that would make sure we do not end up there again.”
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Johnson Matthey chief says UK has fallen behind in hydrogen energy race, October 31, 2022
