• REA broadly welcomes Hydrogen Investment Package;
• Hydrogen Business Model, Net Zero Hydrogen fund and Low Carbon Hydrogen Standard all highlighted as positive measures;
• Issues raised with blending, revenue schemes for smaller projects and hydrogen production pathways.

The Association for Renewable Energy and Clean Technology (REA) has broadly welcomed the publication of the Hydrogen Investment Package, but say that there remain areas which require further action.

Following the disappointment of yesterday’s [7 April 2022] Energy Security Strategy, the REA say that the Package contained an array of positive announcements, in particular the Hydrogen Business Model and Net Zero Hydrogen Fund, which will support the kick starting to the market and scale up of the clean hydrogen sector in the UK.

The REA also highlighted the Low Carbon Hydrogen Standard and the commitment to develop a certification scheme, saying that this will underpin the investment required is another crucial development.

However, there was disappointment that that blending was not included in the business model at this time or that Government did not provide a separate support scheme for smaller projects. Concerns were also raised that other hydrogen production pathways – such as from biomass – had been overlooked.

Dr Kiara Zennaro, Head of Heat and Green Gas lead at the Association for Renewable Energy and Clean Technology (REA), said:

“Yesterday’s Energy Security Strategy was largely inadequate and did little to provide solutions to the energy crisis in the short and medium terms. However, one of the few positives which emerged was the doubling of hydrogen production target to 10GW by 2030, half coming from electrolytic sources.

“Today’s announcements build on that ambition, and we welcome the Government decisions on the Hydrogen Business Model and Net Zero Hydrogen Fund, which will support the kick starting to the market and scale up of the clean hydrogen sector in the UK. The publication of the Low Carbon Hydrogen Standard which will underpin the investment required is another crucial development and should provide a robust and transparent framework to underpin clean hydrogen deployment.

“However, while we are pleased that Government has listened to industry’s call not to place additionality requirements at this time, we are disappointed that blending is not included in the business model at this time or that Government doesn’t see the need for a separate revenue scheme for smaller projects. In addition, we are concerned that other hydrogen production pathways – such as from biomass – have been overlooked.

“In short, this is a broadly welcome package of measures, but there is still much work to do.” 

William Mezzullo, the REA’s Chair of the Green Gas Forum and the Hydrogen Working Group and Head of Hydrogen at Centrica, also welcomed today’s announcements, saying:

“We’re pleased to see today’s announcement and believe this is a significant step forward for our industry members in providing a clearer pathway to enable low carbon hydrogen production and decarbonisation through its use. We look forward to our continued work with Government and to make hydrogen happen.”

—ENDS—

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Notes to editors

About the Association for Renewable Energy and Clean Technology (REA):

The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

For more information, visit: www.r-e-a.net