To reach net zero, the Chancellor must invest in clean hydrogen
2 min read
Cadent believe a commitment from the Chancellor on the below would help drive forward growth whilst building towards our Net Zero target
As the Climate Change Committee have made clear, there is no realistic scenario which allows the UK to hit its Net Zero target by 2050 without clean hydrogen playing a key role in decarbonising Heat, Transport, Power and Industrial Processes.
Moreover, Cadent’s research shows that the transition to Net Zero is significantly cheaper for consumers in scenarios where early investment is made to allow Blue and Green hydrogen to be part of the solution.
Come Wednesday, Cadent believe a commitment from the Chancellor on the below would help drive forward growth whilst building towards our Net Zero target.
Hydrogen production
Hydrogen will be a key part of the future low carbon energy mix, as such increased scaled production of hydrogen and promotion of sector coupling will be important. For example, further utilisation of offshore wind, by storing excess generation as hydrogen in periods of low demand.
A clearly communicated cost reduction target for hydrogen production, similar to that set for Offshore Wind previously, would be a huge step forward as it would spur competitive private sector processes to support achievement of that target. We would advocate this being done with the co-operation of other countries also driving this agenda such as Japan, Australia, Germany and The Netherlands.
Transport
We would welcome more emphasis on the role hydrogen can play as alternative for HGVs, buses and trains in the forthcoming Transport Decarbonisation Plan. Hydrogen is being used today in public transport systems in cities around the world and we believe there is a strong case for Government to provide support to hydrogen transport akin to the “all-electric bus towns” that is currently being floated by DfT.
Heating
We will need a mix of technologies and locality-specific solutions to decarbonise our heating system. Regulatory levers should be used to unlock the private sector investment required, thereby minimising the impact on the public finances. This might include, for example, the mandating of hydrogen-ready boilers to align with the Future Homes Standard by 2025, and the introduction of a Low Carbon Obligation (LCO) from that date to enable investment in low carbon forms of heating, such as heat pumps, biomethane, hydrogen and hybrid systems. Providing Customer choice in achieving Net Zero."
