The government has committed £20 million to a new competition to reduce the cost of mass producing low-carbon hydrogen.

Energy and clean growth minister Claire Perry made the announcement on a visit to the Hydrogen Hub in Swindon today (11 May).

“Clean, green and safe, hydrogen has an exciting role to play powering the UK but needs to be cheaper and more widely available to live up to its potential,” said Perry.

“Today’s £20 million funding boost, part of our modern industrial strategy, will help to address these challenges so that we can sustain the exciting momentum building in our low carbon hydrogen economy, creating high-value jobs up and down the country.

“Clean growth is at the heart of our modern industrial strategy and creates huge opportunities for the UK, securing our place as global leaders in this field.”

The competition will aim to accelerate the development of production techniques which have the potential to undercut steam methane reformation combined with carbon capture and storage, or improve carbon capture rates at a comparable cost.

The programme will take place in two phases. The first phase will focus on fleshing out engineering designs and productions plans, including the development steps which will be needed for each process. The second phase will focus on demonstrating key components and developing the techniques further.

Earlier today gas distribution network Cadent published a new report on its plans to build the UK’s first large-scale hydrogen gas grid in the North West at a cost around £900 million.

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