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DIGEST

HYDROGEN COULD PAVE THE WAY FORWARD FOR THE UK ECONOMY

GAS INDUSTRY URGES hydrogen, ideally in cooperation with

other hydrogen-leading countries, such
GOVERNMENT TO PROMOTE as Japan, Australia, Germany, and the
Netherlands. Such a target, they said,
would be a “huge step forward” for
HYDROGEN-FUELLED RECOVERY the fledgling sector as it would spur
“competitive private sector processes
to support achievement of that target”.
The companies also recommended
TEN OF THE UK’S largest gas networks The projects, they added “present an that the government pull “regulatory
and energy supply chain companies opportunity to create jobs in all regions levers” that could decarbonise the
have written to the government to in the UK, supporting the ‘levelling heat sector with a minimal impact
set out how it can supercharge the up’ agenda, with thousands of new on public purse strings. These
hydrogen economy as it sets out its apprenticeships and new industries levers could include the mandating
pandemic recovery strategy in the created where the UK can lead the world”. of hydrogen-ready boilers to align
months to come. The signatories, which include with the Future Homes Standard by
In a letter sent to Chancellor Rishi National Grid, the Energy Networks 2025, and the introduction of a Low
Sunak, the firms argued that policies Association, Siemens Energy, Engie, Carbon Obligation (LCO) that would
and regulatory frameworks that boost and Ryse Hydrogen, said that they turbocharge investment in heat
the UK’s hydrogen sector should intend to invest £900 million in pumps, biomethane, hydrogen, and
play a key role in the government’s establishing the world’s first ‘zero hybrid systems.
forthcoming economic recovery plans, carbon gas grid’ in the UK. “Clear policy direction” is required,
reports Business Green. Official plans for a major investment they argued, to give energy regulator
The transition to net zero, they programme would be unveiled either Ofgem the chance to change the gas
argued, will be “significantly cheaper before or during the COP26 climate safety rules to allow green gases into
for consumers” if early investment is conference, they said. existing gas networks. They also
made in both green hydrogen, which is Among the series of recommendations called for the government to release
produced with renewable energy, and put forward to the Chancellor, the funding that would enable a “full-scale
blue hydrogen, which is produced with business leaders said the government transition” to hydrogen networks for
natural gas but accompanied by carbon should decide which of the UK’s cities and regions, such as Aberdeen,
capture and storage technology. proposed carbon capture, usage and Leeds and Manchester that have been
“There are shovel-ready projects storage (CCUS) hubs it intends to back as early adopters of the technology.
ready to be unleashed across the low part of its manifesto promise. The companies also urged the
carbon energy value chain if policy They also called on the government government to place more emphasis
direction and an investable regulatory to emulate what it had done in the on the role hydrogen can play in zero
framework can provide clear signals,” offshore wind sector and set an emission buses, trains, and HGVs in
the signatories wrote. official cost reduction target for green forthcoming transport policy documents.

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16/07/2020 19:52
News.indd 1 16/07/2020 19:52
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