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How the UK’s Hydrogen Sector Can Help Support the UK’s Economic Recovery


The APPG on Hydrogen’s latest report urges the Government to move quickly on hydrogen and set ambitious policies to unlock investment, create employment opportunities and support the UK’s net-zero targets.
The APPG on Hydrogen’s report, developed as part of its inquiry into ‘How the UK’s hydrogen sector can help support the UK’s economic recovery’, sets out 15 recommendations to support and accelerate the growth of the UK’s hydrogen sector.
These include:

  • Developing a cross-departmental hydrogen strategy between Government and industry
  • Using regulatory levers to unlock private sector investment required, including amending the GSMR and expanding the remit of the Bus Service Operator Grant
  • Setting interim targets for low-carbon hydrogen production by 2030 alongside the introduction of a Low Carbon Obligation to enable investment in low carbon forms of heating such as hydrogen
  • Mandating hydrogen-ready boilers by 2025
  • Creating greater incentives in hydrogen alternatives to support organisations and customers who produce, purchase or use hydrogen HGVs, buses and trains
  • Working with local and regional authorities exploring hydrogen’s potential to support the uptake and commercialisation of existing projects
  • Setting more ambitious policies and financial targets on hydrogen to meet net-zero by 2050 ahead of other international competitors
  • Ensuring the UK hydrogen industry plays a major role at COP26, allowing the UK to inspire other nations and sell its products and services
  • Delivering funding models to create investment and economic jobs directly to the UK
  • Implementing measures similar to Offshore Wind, such as Contracts for Difference to incentivise industry and scale-up a hydrogen economy.

Funding source: Baxi Heating, Bosch, Cadent, EDF, Energy and Utilities Alliance, Equinor, National Grid, Northern Gas Networks, SGN and Shell
Related subjects: Policy & Socio-Economics
Countries: United Kingdom

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