The Hydrogen Climate Solution

As a country our energy supply needs to be decarbonised rapidly to help mitigate climate change. Hydrogen alongside clean electricity will be required.

17% of total energy consumption comprises electricity use
2% of total energy consumption is supplied by offshore wind – our largest renewables source

The UK is targeting a four-fold increase in offshore wind by 2030, which could provide up to 10% of total energy consumption with efficiency gains, but this falls far short of the total.

We support the Climate Change Committee’s assessment that we need low carbon hydrogen produced from all sources as quickly as possible. This includes ‘GREEN’ hydrogen produced with clean electricity as well as ‘BLUE’ hydrogen made from natural gas with carbon capture and storage. Critically, whatever the source, robust regulation and monitoring systems are needed to ensure that the hydrogen reaching an end user is providing an environmental benefit, i.e., that its production meets the conditions of the UK’s low carbon hydrogen standard.

The Hydrogen Climate Solution

Robust regulation and monitoring systems are needed to ensure that the hydrogen reaching an end user is providing an environmental benefit, i.e., that its production meets the conditions of the UK’s low carbon hydrogen standard.

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The impact of the UK Emissions Trading Scheme on electricity prices

The UK should follow the EU’s lead in urgently reviewing the scope of sectors covered by its indirect carbon cost compensation scheme, to afford our manufacturers the same chances that our European competitors will be given. Swift action in this area would support the aims of our Industrial Strategy which seeks to reduce electricity cost to promote industrial decarbonisation, and such a move makes economic sense in the context of any linking agreement that might be pursued between the UK ETS and EU ETS.