Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 23
23
Accepted
Paragraph: 177
The Government’s hydrogen strategy and subsequent updates to the market provide a framework with an...
Recommendation
The Government’s hydrogen strategy and subsequent updates to the market provide a framework with an intention for further consultations rather than early or firm decisions. The Government’s understandable desire to keep its options open pending market and technological developments may not provide the clarity that investors require to proceed. The Government needs to trade the risk of failing to meet Net Zero if decisions on how to reach it are not taken soon enough against the risk of pursuing unproven technologies or solutions that are not cost-effective which would then set the UK back at a later stage. Alongside the series of decision points between now and 2050 required to determine the role of hydrogen in the UK, the Government should, in its response to this Report, set out clear criteria to identify the potential role of hydrogen in each sector.
Government Response Summary
The government aims to be market-led and technology-neutral, funding research and studies across multiple end uses, such as the Industrial Hydrogen Accelerator and Industrial Fuel Switching competitions, to support market determination of the best technology mix.
Paragraph Reference:
177
Government Response
Accepted
HM Government
Accepted
As the UK Hydrogen Strategy outlines, government is aiming to be market-led and technology-neutral, allowing the market to determine the optimal technology mix to decarbonise different sectors. Government also recognises the importance of working with industry to enable hydrogen demand to come forward. For example, since hydrogen use is at an early stage in many cases government continues to fund and undertake research and studies to understand, develop and commercialise a range of hydrogen technologies across multiple end uses. This is intended to support the market determining the best mix of technologies. For example, government has: • funded nine feasibility projects through the £26 million Industrial Hydrogen Accelerator competition, looking to produce evidence on end-to-end industrial fuel switching to hydrogen; • progressed 21 phase 1 feasibility projects as part of the £55 million Industrial Fuel Switching 2 competition; • allocated over £12 million through the second round of the Clean Maritime Demonstration competition, with seventeen projects exploring the use of hydrogen and/or hydrogen derived fuels in clean maritime solutions. Government is also developing GHG emission phase out requirements across sectors to stimulate decarbonisation activity. For example, government recently consulted on significantly strengthening the emissions intensity limits, applicable from 2034 to new