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Boosting UK hydrogen growth as government supports world-leading industry

Boosting UK hydrogen growth as government supports world-leading industry

 


Seven successful projects from Suffolk to Shetland to create low-carbon hydrogen with more than 21 million government supports, while producing green fuel for buses, trucks and trains, announced at the second Hydrogen Investors Forum We will support local businesses transitioning away from natural gas. , where industry leaders gather to discuss growing economic opportunities in the UK.

Low-carbon hydrogen will be further boosted with more than 21 million government support for seven projects to create the green fuel, boosting regional transport and business from Suffolk to Shetland.

The four projects will develop plans for new hydrogen production plants to strengthen long-term energy security by supplying clean fuel to companies in a variety of industries, from pharmaceuticals to automotive.

The remaining projects will begin construction in Aberdeen, Tees Valley and Suffolk, helping to secure the UK's energy supply by producing more domestically grown hydrogen for industry and transport through projects such as: This will be

Suffolk Hydrogen, operated by Hydrab Power, which plans to make green hydrogen for low-carbon service vehicles at its Sizewell C nuclear power station. Tees Valley hydrogen operated by Exolum to build new hydrogen charging station to help supply local transport sector BP and Aberdeen City Council to provide clean fuel for local electric buses operated by Aberdeen Hydrogen Hub

Minister of State for Energy and Security Claire Coutinho said:

We are strengthening the UK’s position as a world leader in hydrogen.

New projects funded across the country will boost clean domestic energy supplies for buses, trains and local businesses.

By supporting the UK hydrogen industry, we can support more than 12,000 jobs and up to $11 billion in private investment by 2030.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

We expect hydrogen to play a key role in decarbonising business and transport as we work to achieve net-zero targets.

This new project announced today further demonstrates our ongoing commitment to supporting the UK’s growing hydrogen industry.

This follows the announcement of more than 2 billion for 11 different green hydrogen production projects, ensuring more energy is produced within the UK.

The seven projects have the potential to increase hydrogen manufacturing capacity by up to 800 MW, helping local communities reduce emissions while moving towards net zero.

The government has also begun requiring evidence for the hydrogen and carbon capture, use and storage (CCUS) elements of the Green Industries Growth Accelerator.

The 960 million green industry growth booster, announced in a statement last fall, will accelerate advanced manufacturing capabilities in areas including offshore wind, networks, carbon capture, use and storage, hydrogen and nuclear.

The announcement was made at the government's second Hydrogen Investor Forum, which brought together industry leaders to discuss the economic and net zero opportunities offered by the UK's hydrogen economy.

This follows government support for 11 major new hydrogen production projects in December 2023. The project is expected to support more than 700 jobs and generate $400 million in new investment, positioning the UK as a global leader in the industry.

It builds on important steps to deliver affordable, clean UK energy and create strategic advantages in emerging industries, including:

A number of new carbon capture and hydrogen projects are underway across the UK to capitalize on this emerging market, backed by $20 billion in support. A race to build small modular nuclear reactors begins. It is one of the most advanced nuclear technologies in the world, supported by investment. Supporting open tenders for the emerging UK floating offshore wind sector for $205 million of new UK low-carbon power projects this year alone.

Clare Jackson, CEO of Hydrogen UK, said:

Today’s approval of seven pioneering hydrogen projects highlights the transformative power and versatility of hydrogen as the foundation for safe and clean energy solutions. This pivotal announcement strengthens the UK’s burgeoning hydrogen economy, accelerating the achievement of our production ambitions.

Jamie Burns, Director at Hygen Energy, said:

We are delighted that the Suffolk Hydrogen Hub has been selected for government NZHF funding. It plans to provide a clean hydrogen production, fueling and transportation system for the region. End-to-end solutions like these are critical to implementing a successful supply and demand equation and continuing the transition to a low-carbon, sustainable future.

Exolum Clean Energy Director Andres Suarez said:

Exolum is committed to leading the energy transition and supporting green hydrogen deployment. We are therefore proud to have achieved this important milestone in the development of the Tees Valley Hydrogen Vehicle Ecosystem Project. The project will support the decarbonisation of the Tees Valley's heavy-duty fleet, with the wider consortium rolling out an initial fleet of 25 vehicles to begin operating in applications including waste collection, freight transport and supermarket couriers.

Oliver Taylor, CEO of bp Aberdeen Hydrogen Energy Ltd, said:

bp Aberdeen Hydrogen Energy Ltd welcomes today's announcement that the Aberdeen Hydrogen Hub will receive funding from the UK Government's Net Zero Hydrogen Fund. This is an important step in considering a final investment decision on the project to deliver the first phase of a scalable green hydrogen production, storage and distribution facility in Aberdeen. By leveraging the natural resources, skilled workforce and pioneering spirit of north-east Scotland, the Aberdeen Hydrogen Hub can create new energy solutions that build on the region's strong oil and gas heritage.

Steve Boughton, Director of Hydrogen UK at RWE, said:

RWE is delighted to have received funding from the Net Zero Hydrogen Fund for the Pembroke Green Hydrogen Phase 2 project.

The Pembroke Green Hydrogen Phase 2 project is a 200 MW electrolytic hydrogen production plant, the second phase of green hydrogen development under RWE's Pembroke Net Zero Center (PNZC) initiative. The project is expected to be operational in the late 2020s and will play a key role in decarbonising the South Wales industrial cluster.

As a company with ambitions to develop around 2 gigawatts of green hydrogen projects across all markets and invest around €8 billion of net clean energy infrastructure in the UK between 2024 and 2030, RWE is committed to ensuring that the UK's hydrogen ecosystem thrives. there is.

CEO of Veri Energy Salman Malik said:

We are delighted to have been selected by the Net Zero Hydrogen Fund to receive funding to support front-end engineering and design studies for a 50 MW green hydrogen plant at Sullom Voe Terminal. This is an important first step in supporting our ambition to produce multi-gigawatt-scale green hydrogen as Sullom Voe, leveraging existing technologies and infrastructure. Significant additional work is required to establish the feasibility of the project. Collaboration with local and central government, Shetland communities and strategic partners is vital to our success.

Maggie Sandison, Chief Executive of Shetland Islands Council, said:

This is Shetland’s first hydrogen project and we are delighted that Veri Energy has received funding to progress front-end engineering and design studies. This is a clear recognition by the UK Government of the strategic importance of the Sullom Voe terminal and its importance to Scotland as a whole.

Matthew Day, Head of Power to X at EDF Renewables UK, said:

Today’s announcement is another positive step forward for Tees Green hydrogen and our ambition to make the North East a world leader in green technology. Expanding Tees Green hydrogen capacity in Phase 3 means we can have an even greater impact on the decarbonising industry in the region. The government's support during the development phase is a huge vote of confidence in our ability to deliver this innovative project.

Adam Baddeley, Head of Electrolytic and Industrial Hydrogen at Progressive Energy Ltd, said:

We are delighted to have received this funding and vote of confidence in relation to the Grenian Hydrogen Speke project being developed by our partners Statkraft, Foresight and Progressive Energy.

The Speke area of ​​Liverpool City Region is a regional industrial hub, with companies such as Ford, Jaguar LandRover and Astra Zeneca all located within the manufacturing cluster, providing jobs and driving growth in the automotive, pharmaceutical and specialty chemicals sectors.

Government support is critical to funding the engineering design work needed to enable the development of Grenians’ hydrogen infrastructure. Speke is also host to Liverpool John Lennon Airport, so this will be used to decarbonize the industry as well as potentially the aviation sector.

We plan to tender this project to the government's HAR2 process to secure a 15-year low-carbon hydrogen contract by early 2025, with the intention to begin operations in 2028.

Note to editors

Check out the list of new projects from the Net Zero Hydrogen Fund that are subject to contract.

Visit the Call for Evidence on the Hydrogen and CCUS Elements of the Green Industries Growth Accelerator.

Sources

1/ https://Google.com/

2/ https://www.gov.uk/government/news/boost-for-uk-hydrogen-as-government-backs-world-leading-industry

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