The government has pledged to set out details next year of new mechanisms to help both its target to dramatically increase the uptake of heat pumps and the UK’s fledgling hydrogen and carbon capture industries.
A policy paper, published this afternoon (18 November) by No 10 Downing Street, outlines further details of the prime minister’s 10-point plan for a green industrial revolution.
It says that by 2023, the government hopes to see 1GW of hydrogen production capacity en route to a longer-term target of 5GW by 2030.
To help achieve this rollout, the paper says that the government will bring forward details in 2021 of a “revenue mechanism to bring through private sector investment in industrial carbon capture and hydrogen projects, to provide the certainty investors require.”
This will help to achieve the government’s goal of four carbon capture clusters by 2030, which the policy paper badges as SuperPlaces.
In order to stimulate the market for heat pumps, 600,000 of which are due to be installed per annum by 2028 according to the 10-point plan, the paper proposes creating a “market led incentive framework”.
In addition, regulations will be brought forward to support heat pump deployment, especially in off gas grid properties.
However, the paper says the government is leaving open the choice about ultimately pursuing hydrogen, heat pumps, or a mixture of both for heating while pilot projects continue.
The paper also says the government will seek to implement the Future Home Standard to improve the energy efficiency of new dwellings, which is currently due to come into force by 2025, in the “shortest possible timeline”, and will consult “shortly” on raised standards for non-domestic buildings.
Of the fresh funding earmarked for nuclear in Boris Johnson’s plan, the bulk will go towards modular reactors.
Out of the £385 million Advanced Nuclear Fund, up to £215 million will be invested into small modular reactors. In addition, there will be up to £170 million for a research and development programme on Advanced Modular Reactors with the aim of building a demonstrator by the early 2030s.
The paper says the Offshore Transmission Network Review will publish an update by the end of the year, with a view to providing clarity for an enduring approach in 2021
Responding to the 10-point plan, BEIS select committee chairman Darren Jones urged Rishi Sunak to back it up with further resources beyond the additional £4 billion of spending announced yesterday when the chancellor of the exchequer presents his Spending Review next week.
Jones said: “The PM’s plan is welcome but must only be the beginning of the action needed to tackle climate change, boost the prospects of a green recovery, and create net zero related jobs. I hope the Chancellor, having scrapped the longer-term spending plans which could have put rocket-boosters under these plans, will ensure the Spending Review backs up the PM’s words and starts to deliver the investment needed to help meet our climate goals.”
“The PM is saying the right things on the ambitions to make our homes warmer and more energy efficient, but this is the big challenge which needs decisions and policies within the timescale of this Parliament. Achieving the government’s net zero target demands that we move to decarbonising all buildings by 2050. Heat-pumps are only part of the solution. We look forward to seeing the detail of the government’s heat strategy and hope that it matches the PM’s rhetoric by tackling some of the big issues around heating and energy use in the home.
“I hope the government will come forward with broader support for industrial decarbonisation beyond the signals on carbon capture and on hydrogen. If this is a ‘Green Revolution’ we need an industrial decarbonisation strategy to go along with it and we need all of government and Whitehall to be joined up to deliver it.”