The UK’s Hydrogen Investment Package is broadly welcome but further action is needed, according to the Association for Renewable Energy and Clean Technology (REA).
REA said that the package contained an array of positive announcements, in particular the Hydrogen Business Model and Net Zero Hydrogen Fund, which will support the kick starting to the market and scale up of the clean hydrogen sector in the UK.
The Low Carbon Hydrogen Standard and the commitment to develop a certification scheme is also a crucial development.
However, REA said it was disappointed that that blending was not included in the business model at this time or that government did not provide a separate support scheme for smaller projects.
REA also raised concerns that other hydrogen production pathways – such as from biomass – had been overlooked.
REA head of heat and green gas Kiara Zennaro said: “Yesterday’s Energy Security Strategy was largely inadequate and did little to provide solutions to the energy crisis in the short and medium terms.
“However, one of the few positives which emerged was the doubling of hydrogen production target to 10GW by 2030, half coming from electrolytic sources.
“Today’s announcements build on that ambition, and we welcome the government decisions on the Hydrogen Business Model and Net Zero Hydrogen Fund, which will support the kick starting to the market and scale up of the clean hydrogen sector in the UK.
“The publication of the Low Carbon Hydrogen Standard which will underpin the investment required is another crucial development and should provide a robust and transparent framework to underpin clean hydrogen deployment.
“However, while we are pleased that government has listened to industry’s call not to place additionality requirements at this time, we are disappointed that blending is not included in the business model at this time or that government doesn’t see the need for a separate revenue scheme for smaller projects.
“In addition, we are concerned that other hydrogen production pathways – such as from biomass – have been overlooked.
“In short, this is a broadly welcome package of measures, but there is still much work to do.”