The government has held the first meeting of a new Hydrogen Advisory Council as Boris Johnson unveiled £139 million of investment to support the development of new low carbon industrial clusters.
Energy minister Kwasi Kwarteng revealed yesterday (21 July) that the first meeting had taken place of the new Hydrogen Advisory Council, which he will co-chair with Sinead Lynch, UK Country Chair of Shell.
The council’s remit will be to act as the “primary forum” for engagement between ministers from the Department for Business, Energy & Industrial Strategy (BEIS) and representatives from the hydrogen sector.
The new body will consider the relationship between production and end use, including strategic considerations for where and when hydrogen is deployed, alongside coordination with potential demand volumes and cost implications.
The meeting occurred as the prime minister prepared to announce £350 million of funding this morning for efforts to decarbonise construction, industry, space and transport.
The announcement includes a £139 million pot to cut emissions in heavy industry by converting natural gas to clean hydrogen power and scaling up CCS (carbon capture and storage) technology.
A BEIS spokesperson told Utility Week that the £139 million Industrial Decarbonisation Challenge funding is available for 12 projects in Merseyside, the Tees Valley, Humber, South Wales and in Scotland.
They will have the opportunity to bid for a share of the funding to deploy Carbon Capture & Storage (CCS) and low-carbon hydrogen plants in new industrial clusters.
The prime minister’s funding announcement follows mounting concern that the UK risks being left behind in the race to develop the hydrogen as other countries plough money into the technology.
David Smith, chief executive of Energy Networks Association, said the prime minister’s commitment will help keep the UK in “pole position in the international hydrogen race”.
A spokesman for the Hydrogen Taskforce, which is made up of companies operating in the sector, expressed hope that the establishment of the new council would accelerate efforts to develop the rollout of the technology.
“The announcement of £139 million to support the transition of heavy industry from gas towards hydrogen and CCS is hugely welcome. Alongside ongoing development of potential funding models for the large-scale production of hydrogen, this demonstrates a major step forward for the hydrogen sector. We look forward to working closely with government in coming months to build on this momentum and seize the opportunities hydrogen offers the UK.”
Responding to the government’s announcement, EnergyUK chief executive Emma Pinchbeck, said: “Hydrogen and CCUS are a part of the bigger Green Recovery. If government invests in low carbon energy technologies and businesses, we are confident that it will massively benefit the economy, environment and society.”