Major boost for hydrogen

Eleven new production projects are helping to place the UK at the forefront of the hydrogen industry and bring progress towards net zero ambitions. According to the government, over 700 jobs will be created across the UK in a world-leading hydrogen industry from the South West of England to the Highlands of Scotland, backed by £2 billion in government funding over the next 15 years.

In December 2023, energy security secretary Claire Coutinho announced backing for 11 major projects to produce green hydrogen – through a process known as electrolysis – and confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply.

In return for this government support, the successful projects will invest over £400 million in the next three years, generating more than 700 jobs in local communities across the UK and delivering 125MW of new hydrogen for businesses including:

• Sofidel in South Wales, which will replace 50% of its current gas boiler consumption with hydrogen at its Port Talbot paper mill

• InchDairnie Distillery in Scotland, which plans to run a boiler on 100% hydrogen for use in its distilling process

• PD Ports in Teesside, which will use hydrogen to replace diesel in its vehicle fleet, decarbonising port operations from 2026

The minister for energy efficiency and green finance, Lord Callanan, said:“Today’s funding commitment represents a monumental step forward in helping producers to deliver a fuel of the future today, backing businesses to go greener.

“This will be essential to achieving our net zero targets, and will benefit people across the UK with the job and investment opportunities that this funding will bring.

“Today’s funding represents the most significant step in scaling up the UK’s hydrogen economy to date – speeding up progress towards the government’s ambition to deploy up to 10GW low-carbon production capacity by 2030.”

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