One of the technologies projected to play a role in the race to net zero for the UK is hydrogen. Hydrogen presents the opportunity to be a cleaner fuel alternative to oil and natural gas because it can assist with the decarbonisation of power generation, heavy industry and transport. It can also be stored for long periods of time and used when demand is high and wind or solar assets are not generating.
Unlike natural gas, hydrogen deposits are thought to be limited and therefore must be produced from other sources such as gas and renewables. However the UK has the renewable resources, the geography, the demand, the people and the expertise to drive a successful hydrogen economy.
The UK Government has a declared ambition of 10GW of low-carbon hydrogen by 2030. This meets objectives for economic growth, energy security and tackling climate change.
New technologies will be required in the supply chain
It is recognised that supporting new technologies will be essential to establishing hydrogen as a cost-effective option and therefore there are government incentives available.
The infrastructure projects and associated supply chains needed to deliver up to 10GW low-carbon hydrogen production capacity offer opportunities for large-scale private investment.
Producing, transporting, storing and using hydrogen will require new technology, infrastructure, supply chains, investment, jobs and skills to make the vision for hydrogen in the UK’s future energy mix a reality.
It is clear that the economic potential is considerable. By establishing itself as a hydrogen leader, the UK can draw investment from global companies interested in establishing hydrogen production facilities, and funding from the government and private sector for new projects.
These investments, alongside location and existing port capabilities, could position the UK as a leading hydrogen exporter to Europe and beyond, attracting new business and creating jobs along the way.
Partner Content in association with Brodies LLP
