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

Prescot: Chancellor’s speech gives welcome “green light” to OxCam Arc infrastructure upgrades
Julia Prescot

Prescot: Chancellor’s speech gives welcome “green light” to OxCam Arc infrastructure upgrades

The Commission has welcomed the speech this morning by the Chancellor, the Rt Hon Rachel Reeves MP, setting out the government’s plans for growth. In it she set out new details on its plans to invest in and deliver new infrastructure projects in support of this goal, including outlining new plans for the development of...

29 Jan 2025 By
Government update on plans to tackle planning delays “welcome and timely”
A T-Pylon

Government update on plans to tackle planning delays “welcome and timely”

The government has published over the weekend (26 January) more details of its programme of planning reforms, as part of its Plan for Change to deliver long term growth. The update provides more details of the reforms in the Planning and Infrastructure Bill designed to speed up the approval of major infrastructure projects. A Planning...

27 Jan 2025 By
Ferry ‘cross the Mersey to see Liverpool’s infrastructure priorities firsthand
Aerial view over the city of Liverpool

Ferry ‘cross the Mersey to see Liverpool’s infrastructure priorities firsthand

Our Chair Sir John Armitt, Commissioner Michele Dix and members of the Commission’s secretariat spent Thursday (24 January) in Liverpool to hear from City Region Combined Authority officials and regional stakeholders about the region’s infrastructure priorities and growth ambitions – with one of the city’s famous ferries providing a vantage point from which to get...

24 Jan 2025 By

Evidence_Icon_Turquoise Created with Sketch.

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