UK Unveils Hydrogen Strategy

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The UK government has announced a hydrogen strategy that aims to build 1 GW of capacity by 2025 and 5 GW by 2030. By 2050, up to 20%-35% of the UK's final energy consumption could come from hydrogen, according to analysis by the Department for Business, Energy and Industrial Strategy. To support that ambition, a £240 million ($330 million) Net-Zero Hydrogen Fund will be established early next year and a subsidy framework is being considered for early projects. Blue hydrogen -- made from natural gas with carbon capture and storage (CCS) -- is part of the plan, at least during the current decade. "We would expect this route to be able to deliver a greater scale of hydrogen production as we look to establish a UK hydrogen economy during the 2020s," the document notes. But costs of carbon-free green hydrogen are expected to fall rapidly and become competitive with blue hydrogen, perhaps as early as 2025 in some cases. The UK government will also support the deployment of hydrogen network and storage infrastructure, along with hydrogen-ready equipment -- including residential heating systems.

Carbon Capture (CCS), Hydrogen
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