Fuel Cells and Hydrogen: Finance

(asked on 20th May 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what investments they are making which are specifically targeted at (1) the science, and (2) the skills base, underpinning hydrogen technologies; and what plans they have to introduce a new policy framework for the development of hydrogen and fuel cell technologies as part of their decarbonisation strategy.


Answered by
Lord Callanan Portrait
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 3rd June 2021

The £1 billion Net Zero Innovation Portfolio and its forerunner, the Energy Innovation Programme, seek to accelerate the commercialisation of low carbon technologies, systems and business models. These programmes include the new £60 million Low-Carbon Hydrogen Supply 2 competition which is aimed at accelerating the development of a wide range of innovative low-carbon hydrogen supply solutions; and the Hy4Heat Programme, which is working to establish if it is technically possible, safe and convenient to replace natural gas (methane) with hydrogen in residential and commercial buildings. Hy4Heat has worked with Energy & Utility Skills to develop a competency framework for skills accreditation for heating engineers working with hydrogen.

We have also delivered projects such as the £20 million Industrial Fuel Switching which includes the first demonstrations of firing hydrogen at commercial fuel supply scale for the manufacture of cement and lime. Furthermore, the £10 million Green Distilleries Competition is supporting nine feasibility studies for low-carbon hydrogen-related projects. BEIS has also let a contract to the University of Cambridge to explore the atmospheric impacts of hydrogen release.

My Rt.Hon. Friend the Prime Minister’s 10 Point Plan was clear on our aim for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. The forthcoming Hydrogen Strategy will set out what is required to build a hydrogen economy fit for 2030, Carbon Budget 6 and beyond, whilst maximising economic benefits and supporting job and skills. We will also consult on priority policies, including hydrogen business models, a low carbon hydrogen standard, and the £240m Net Zero Hydrogen Fund.

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