Hydrogen Investor Roadmap: Leading the way to Net Zero

Abstract:

Low carbon hydrogen will be vital to achieving net zero by 2050, with the potential to help decarbonise key UK industrial sectors and provide energy across heat, power and transport. The UK Hydrogen Strategy reaffirmed the Governments aim, working with industry, to have 5GW of low carbon hydrogen production capacity in the UK by 2030. The recent series of policy announcements on the Net Zero Hydrogen Fund, Business Model and a Low Carbon Hydrogen Standard represent the next substantial step forward in government support for the development of a thriving hydrogen economy. We expect that up to 1.5GW of hydrogen production capacity to be in operation or construction by 2025, providing the necessary certainty to unlock the 4bn of private investment we want to see up to 2030. Low carbon hydrogen will be vital to achieving net zero by 2050, with the potential to help decarbonise key UK industrial sectors and provide energy across power, transport and heat. After setting out an aim for 5GW of low carbon hydrogen production capacity by 2030 in the UK Hydrogen Strategy we are now doubling our ambition to up to 10GW by 2030, subject to affordability and value for money, with at least half from electrolytic hydrogen. The recent policy announcements on a Net Zero Hydrogen Fund to support deployment, a business model to ensure long-term revenue support, and a Low Carbon Hydrogen Standard to enable market access and certainty represent the next substantial step forward to developing a thriving UK hydrogen economy. We expect that up to 2GW of low carbon hydrogen production capacity will be in operation or construction by 2025, providing the necessary certainty to unlock over 9bn of private investment we want to see by 2030

Publication Year:

2022

Publisher:

Department for International Trade

DOI:

No DOI minted

Author(s):

Department for International Trade