Hydrogen UK has called on government to take actions to support hydrogen-to-power (H2P) at scale, with it key to achieving the 2030 clean power system ambition and laying the foundations for the system beyond that date too.
Developed by Hydrogen UK’s Power Generation Working Group, the report outlined how H2P will be key to ensuring grid flexibility and reliability, while also providing a large source of hydrogen offtake, helping industrial clusters to decarbonise and delivering jobs and economic growth. However, it is facing obstacles in the shape of a lack of adequate hydrogen storage volumes, uncertainty surrounding business models, cross-chain nascency risks, concerns over strategic oversight and there being no clear route to market.
Hydrogen UK therefore is making a series of recommendations to government, beginning with setting an ambitious target for H2P deployment for 2030 and beyond. This will give markets clear and positive investment signals and should set a clear distinction between new build and retrofitted capacity. Not only would it help new H2P plant come forward, but Hydrogen UK noted it could give further certainty to the wider hydrogen economy. It cited the Climate Change Committee’s modelled range of 12-20GW of low carbon dispatchable generation, most of this from hydrogen, by 2035 for a clean power system as an example for a potential target.
It also wants to see the hydrogen to power business model formalised, becoming the primary means of de-risking and bringing forward sufficient volumes of a first-of-a-kind H2P capacity, and for deployment of adequate hydrogen storage to be aligned with this to facilitate the build-out of capacity.
Government also needs to put a viable and enduring market framework in place as soon as possible, providing confidence in the long-term business case for hydrogen to power. This will include committed and frequent allocation timelines, supported by capacity targets and funding, supporting the business case for a variety of H2p technologies and scales.
Hydrogen UK further noted how the findings in the report already build on recommendations that it has previously made including a clear plan for hydrogen supply to be ready in time for testing and operation, a pipeline of H2P projects in the UK to be established that will lure in OEMs, and the formation of a central hydrogen supply chain support and funding body that helps OEMs to access hydrogen supplies for testing and scale up manufacturing capability.
