Hydrogen strategy "an important milestone" but clarity on costs needed soon

The Commission responds to government's UK hydrogen strategy.

Published: 17 Aug 2021

By: Ben Wilson

Tagged: ,

Graphic image of hydrogen molecules

The Commission has welcomed today’s publication (17 August 2021) of the government’s UK hydrogen strategy and associated consultations, noting that the outcomes of the latter will need to address the challenges of reducing the cost of hydrogen production and ensuring a fair distribution of those costs.

Sir John Armitt, Chair of the National Infrastructure Commission, said:

“This strategy provides a platform for hydrogen to take its place as part of the solution for decarbonising our economy. The proposed twin-track approach to both blue and green hydrogen development presents a realistic pathway to meet the breadth of potential uses across different parts of the economy including industry, transport and power. As recognised by government, it is vital that we concentrate on truly low carbon hydrogen production, and therefore the proposed development of technical standards is welcome.

“The big question is how to drive down the costs of hydrogen production, and its relationship with the low cost of natural gas. That will only happen by scaling up production, so alongside the positive measures to kick start the sector there needs to be a longer term funding model that provides investor confidence in the same way the UK has successfully achieved in the offshore wind sector. Government will also need to decide how best to ensure the cost of natural gas reflects the cost of carbon.

“Clarity on where the costs will fall in such a model, and how they will be distributed fairly, is needed soon in order to secure industry and public confidence and support.

“This strategy is an important milestone, and industry will now look forward to seeing details of the business model, funding mechanism and sector development plan in the coming months.”

Notes

The Commission’s Annual Monitoring Report 2021 called on government to “develop clear, actionable, and funded plans to deliver on commitments made in the Ten Point Plan for a Green Industrial Revolution, and the National Infrastructure Strategy, including setting out next steps on heat decarbonisation and the development of a hydrogen industry”. This builds on previous Commission recommendations in the first National Infrastructure Assessment to help build an evidence base on the future use of hydrogen for domestic heating.

Share this article

<

Recent Articles

Coming up in 2024
Thumbtack pins in calendar concept for busy, appointment and meeting reminder

Coming up in 2024

This page shows a calendar reflecting the latest expected dates for Commission reports, publications and events. You can also sign up to receive our quarterly newsletter by entering your email address in the box at the foot of each website page.

1 Feb 2024 By
Winser: NAO call for robust plan to boost low carbon heating “absolutely right”
picture of a heat pump by a wall

Winser: NAO call for robust plan to boost low carbon heating “absolutely right”

A National Audit Office report out today (18 March 2024) says heat pump installations are falling well below the level needed to meet the government’s targets of 600,000 units installed each year by 2028. The NAO says in response that a more robust plan from government and greater clarity on the future role if any...

18 Mar 2024 By
Government response on surface water flooding risk “does not meet scale of challenge”
A car splashes through a flooded Farringdon Lane in central London after a day of heavy rain.

Government response on surface water flooding risk “does not meet scale of challenge”

The government has today (13 March 2024) responded to the Commission’s study on reducing the risks of surface water flooding, published in November 2022. While it accepts the principles behind a number of the Commission’s recommendations, the government’s response – in the Commission’s view – makes few new commitments on steps to manage surface water...

13 Mar 2024 By
James Heath: urgent planning reform needed to remove “binding constraint” on UK’s economic future
A modern bridge over a dual carriageway cutting through British farmland

James Heath: urgent planning reform needed to remove “binding constraint” on UK’s economic future

James Heath, chief executive of the National Infrastructure Commission, spoke at the Nationally Significant Infrastructure Projects Forum in London yesterday (6 March). James offered the Commission’s view on the vital importance of speeding up the planning regime for major projects, given the need for pace in delivering tens of billions of pounds’ worth of schemes...

7 Mar 2024 By

Evidence_Icon_Turquoise Created with Sketch.

Explore data used in the Commission's research, and gain insights from across UK infrastructure

Join our team of professionals supporting the Commission to provide evidence based and forward thinking advice on infrastructure strategy.