Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the level of support required to develop the UK's green hydrogen economy.

As outlined in BEIS’ Energy White Paper, the Government intends to take a ‘twin-track’ approach to developing a hydrogen economy, focusing efforts on both “blue” and “green” hydrogen. This is expected to grow the UK’s hydrogen supply chain, build sector confidence, and enable scaling up to ensure the longevity of a hydrogen economy.

Furthermore, the Prime Minister’s Ten Point Plan highlighted the significance of hydrogen as a priority technology and the Government recognises the key role it could play in the transition to a net zero economy by 2050. Therefore, the Government has committed to work with industry to aim for 5GW of hydrogen capacity by 2030.

At the 2020 Spending Review, the Chancellor provided £240m for a Net Zero Hydrogen Fund to further the development of a hydrogen economy. The Government is also in the process of developing business models to support the creation of a hydrogen market. Further details of these support mechanisms will be provided in the summer alongside a Hydrogen Strategy.