Source · Select Committees · Public Accounts Committee
Recommendation 33
33
Acknowledged
DESNZ resists early hydrogen decision despite industry and NAO calls for clarity.
Conclusion
We asked DESNZ if it was aware of the level of uncertainty for industry given that an increasing number of businesses do not know what the government’s position is on heat decarbonisation. DESNZ told us that it needed to “take decisions in the right order at the right time” and, in its view, it remained the case that a decision on hydrogen should be taken in 2026. It told us that there was a risk that taking decisions earlier could result in it becoming locked into a “suboptimal path”.67 In contrast, the NAO and written submissions to our inquiry from Hydrogen UK, Good Energy and Octopus Energy have called for the government to consider bringing forward some aspects of its decision on hydrogen.68
Government Response Summary
The government acknowledges the level of uncertainty for industry and households regarding the role of hydrogen in home heating and believes that a decision on hydrogen should be taken in 2026 to avoid becoming locked into a suboptimal path.
Government Response
Acknowledged
HM Government
Acknowledged
The government is aware of the level of uncertainty for industry and households regarding the role of hydrogen in home heating. The government believes that it is important to take decisions in the right order at the right time, and that a decision on hydrogen should be taken in 2026. Taking decisions earlier could result in it becoming locked into a suboptimal path. The government will continue to monitor the evidence and engage with industry and other stakeholders to ensure that it is in a position to make informed decisions in 2026.