Source · Select Committees · Public Accounts Committee
Recommendation 31
31
Acknowledged
Uncertainty over hydrogen's role in heating delays critical industry decarbonisation investments.
Conclusion
Several written submissions to our inquiry highlighted that uncertainty over the role of hydrogen is delaying key decarbonisation investment decisions until government makes a decision on hydrogen. Hydrogen UK, for example, told us that the decisions about trials and recent announcements had “created ambiguity in the role of hydrogen in domestic heating”. It explained that clarity around the role of hydrogen was needed to “enable industry stakeholders to make informed decisions, commit to necessary investments, and drive forward the innovation and infrastructure development required”.59 Similarly, a climate change think tank, E3G, suggested that industry was “suffering” from a lack of clarity regarding government’s “indecisiveness” on the future role of hydrogen for domestic heating.60 The MCS Foundation also told us that businesses, installers and manufacturers will be reluctant to invest in skills and technologies if there is a risk than in later years the government will focus on hydrogen rather than electrified solutions.61 Good Energy further indicated that manufacturers of heat pumps and heat network developers require “affirmative signals” over the future of hydrogen for heating.62
Government Response Summary
The government acknowledges uncertainty around the role of hydrogen in home heating and is committed to providing clarity, informed by hydrogen village trials, and intends to make strategic decisions in 2026.
Government Response
Acknowledged
HM Government
Acknowledged
The government acknowledges that there is uncertainty around the role of hydrogen in home heating and the potential impact of this on investment decisions. The government is committed to providing clarity on the role of hydrogen in the future energy system, including for home heating, to enable industry stakeholders to make informed decisions. This will be informed by the results of the hydrogen village trials and wider evidence base. The government intends to make strategic decisions in 2026 on the future role of hydrogen for heating, following the conclusion of these trials.