The UK is racing ahead with bold moves in hydrogen technology. As the push towards a hydrogen-powered future accelerates, the government is implementing transformative policies and investments to build a thriving hydrogen economy. Here’s a breakdown of the latest key updates driving change in the UK’s hydrogen landscape.
Update #1 – Hydrogen Blending Moves Closer to Reality
One of the government’s major strategies includes blending up to 20% hydrogen by volume into gas networks. Why? Not only could this reduce the cost of hydrogen production, but it could also help “de-risk” the production process. By mixing hydrogen into existing natural gas supplies, the UK is eyeing a cost-effective and smoother transition toward a greener energy mix.
The trials currently underway are testing the feasibility and safety implications of this strategy. Should the results prove favorable, this blending approach will roll out across gas distribution networks, with a decision on transmission-level blending expected in 2024. Think of it as a hydrogen Kickstarter, with the government investing in early infrastructure to prime the hydrogen economy for growth.
Update #2 – Funding Frenzy: Green Hydrogen Projects Get a Boost
Green hydrogen projects just scored big, with 11 UK-based projects awarded initial funding. This represents 125 MW of electrolytic (green) hydrogen production capacity, the largest single batch of green hydrogen projects in Europe. This funding is part of the UK’s Hydrogen Production Business Model, aiming to bring up to 875 MW of green hydrogen projects online in the next funding round.
By the end of the decade, the government intends to run annual funding rounds, supporting not only electrolytic projects but potentially other advanced hydrogen technologies. The financial support is designed to unlock decentralized green hydrogen production and create a strong foundation for the UK’s hydrogen economy.
Update #3 – Powering Up Hydrogen-to-Power (H2P) Projects
Could hydrogen be the future powerhouse of the UK energy market? The government is exploring this very question through a recent consultation focused on hydrogen-to-power (H2P) projects. The idea is to establish a support mechanism to help H2P plants enter the energy mix, specifically targeting CAPEX-intensive plants such as combined cycle hydrogen power plants. Meanwhile, less intensive setups, like hydrogen peaker plants, may enter the capacity market without needing additional support.
With emissions-reduction policies coming into play, hydrogen-based power plants could become a cornerstone in the UK’s low-carbon power generation. By mid-2024, the government is expected to publish its findings from this consultation, offering insight into the future of hydrogen-powered energy generation in the UK.
Update #4 – Progress in Hydrogen Storage Funding
With hydrogen storage vital to maintaining a stable supply, the government is finalizing funding plans to support new hydrogen storage facilities. The Hydrogen Storage Business Model, which outlines these criteria, seeks to make hydrogen storage accessible and widespread, creating the infrastructure needed to support a larger hydrogen network.
The first funding round for geological hydrogen storage projects is scheduled for Q3 2024. To launch two initial projects by 2028-2032, the government also hopes to enhance technological readiness for storage solutions that fall just shy of current criteria. This focus on storage will be critical in creating a sustainable hydrogen ecosystem, allowing more businesses to tap into reliable hydrogen supplies.
The Hydrogen Roadmap: A Blueprint for the Future
The UK’s Hydrogen Net Zero Investment Roadmap envisions over 17 GW of electrolytic hydrogen production and nearly 10 GW of carbon capture and utilization storage (CCUS)-enabled hydrogen production by 2030. The roadmap outlines not only production targets but the strategic goals to make hydrogen a mainstream energy source in the UK.
To learn more about what a hydrogen society means for your business, please contact UK Power Generators – your go-to company for developing sustainable power generation.