Source · Select Committees · Business and Trade Committee
Recommendation 31
31
Deferred
Paragraph: 151
Develop cross-sectoral hydrogen infrastructure strategy and finalise business models this year
Recommendation
Hydrogen looks set to be an important part of a decarbonised power system, both as a source of low-carbon dispatchable power to replace gas and as a source of energy storage which can take advantage of excess supply of renewables. However, given supply constraints, the Government needs to determine the sectors of the economy in which use of hydrogen will be prioritised. We recommend that the Government takes forward the recommendations of the Climate Change Committee to develop a cross-sectoral infrastructure strategy that narrows the space for future hydrogen uses and finalise the business models for hydrogen this year.
Government response summary AI-generated
The government's response details Ofgem’s streamlining of regulatory approval for Accelerating Strategic Transmission Investment projects and the appointment of an Electricity Networks Commissioner, without addressing the recommendation on hydrogen strategy or business models.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
151
Government Response
Deferred
HM Government · verbatim extract
Deferred
70. Hydrogen has an important role to play in decarbonising heavy industry and providing greener, flexible energy across power, transport, and potentially heat. However, it is the Government’s intention that hydrogen demand is guided by the market. Work is ongoing to ensure the regulatory and policy framework supports off-takers to be ready to switch to hydrogen when the commercial conditions are right. The Hydrogen Strategy 2020s roadmap enables policy to be prioritised towards applications with the greatest strategic potential to support deep decarbonisation of the UK economy. 71. The Government expects to publish the standard terms and conditions of the low carbon hydrogen production business model in Q3 2023 for initial projects, with an aim for the first awards to be made in Q4 2023. The Government committed in the 2022 British Energy Security Strategy to design new transport and storage business models by 2025, and is taking forward the necessary measures to implement this commitment, including through measures in the Energy Security Bill. 2 Climate Change Committee (2020): The Sixth Carbon Budget, The UK’s path to Net Zero 3 https://www.iea.org/reports/carbon-capture-utilisation-and-storage-2 14 Decarbonisation of the power sector: Government Response
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