UK – Price based competitive allocation for low carbon hydrogen: call for evidence.
In the British Energy Security Strategy, we set out our aim to run annual allocation rounds for electrolytic hydrogen, moving to price-based competition by 2025 as soon as legislation and market conditions allow.
The purpose of this call for evidence is to gather evidence to understand more about:
- market conditions needed for the UK to transition to price-based competitive allocation for electrolytic projects and potentially other specified non-CCUS (carbon capture, usage and storage) technologies
- the extent to which a price-based competitive allocation process could incentivise projects to support broader outcomes beyond cost reduction of low carbon hydrogen production:
- harnessing electricity system benefits
- economic benefits and supply chain development
- security of supply of hydrogen
- how price-based competitive allocation should be designed
We welcome responses from anyone but expect this call for evidence to be of particular interest to:
- those considering developing new electrolytic projects, and other non-CCUS low carbon hydrogen production projects in the United Kingdom
- businesses involved in low carbon hydrogen production supply chains
- electricity suppliers
- consumer and environmental groups with an interest in low carbon hydrogen production
- trade bodies with an interest in low carbon hydrogen and renewables sectors
READ the latest news shaping the hydrogen market at Hydrogen Central
Price-based competitive allocation for low carbon hydrogen: call for evidence, May 17, 2023
