Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans his Department has to develop green hydrogen production across the UK.
Low carbon hydrogen will be vital for meeting our legally binding commitment to achieving net zero by 2050, with potential to help decarbonise vital UK industry sectors and provide flexible deployment across heat, power and transport.
Working with industry, the UK is aiming for 5GW of low carbon hydrogen production capacity by 2030. As we progress towards this ambition, we would hope to see around 1GW of hydrogen production capacity by 2025.
The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen. Our twin track approach to enable both routes will drive cost effective supply volumes in the 2020s in line with our 2030 ambition, whilst scaling up green hydrogen. This approach is already in evidence in the Government’s £121m hydrogen innovation funding programme, the development of business models to stimulate private investment and the design of the £240m Net-Zero Hydrogen Fund, confirmed out to 2025.
We will publish the first ever UK Hydrogen Strategy in the first half of this year which will set out the key steps needed in the 2020s to deliver our 5GW ambition and set the context for further scale up on the way to net zero.