The UK wants to be the “Qatar of hydrogen” by investing in green and blue forms of the technology as part of its net-zero strategy, according to Prime Minister Boris Johnson.

The strategy sets out policies and proposals to reduce emissions for each sector as well as laying out different decarbonisation pathways.

“It was the strike price, the idea of contracts for difference, that enabled the private sector to come in with wind power,” says Johnson. “And that is what we are now doing with hydrogen.”

Although the accompanying net-zero strategy does not mention specific policies on contracts for difference—often cited by industry as a much-needed measure— it does reaffirm the establishment of an Industrial Decarbonisation and Hydrogen Revenue Support scheme to fund hydrogen and industrial carbon-capture business models.

The government says it will provide £140mn ($193mn) to establish the scheme, including £100mn to award contracts for up to 250MW of electrolytic hydrogen production capacity in 2023, with further allocation in 2024.

“We want to be the Klondike of [carbon capture, utilisation and storage, and] the Qatar of hydrogen,” says Johnson. “We are making big bets on hydrogen, solar and hydro, and yes—of course—on nuclear as well.”

“We are making big bets on hydrogen, solar and hydro, and yes—of course—on nuclear as well” Johnson, UK prime minister

The strategy outlines a plan to convert around 4mn homes to low-carbon hydrogen by 2035.

It also reiterates a plan to establish a £240mn Net Zero Hydrogen Fund, finalise a business model on how support schemes should be designed and outline precise parameters for what types of hydrogen can be defined as ‘low-carbon’.

The UK will also provide £1bn to support the development of industrial CCUS clusters around the country as part of a ten-point plan outlined in December.

The first two clusters set to receive funding both include plans for blue hydrogen production and distribution.

The UK’s independent climate watchdog, the Climate Change Committee (CCC), says it will publish a full assessment of the government strategy in the coming days.

“This is a substantial step forward that lays out clearly the government’s ambitions to cut emissions across the economy over the coming 15 years and beyond,” says Chris Stark, CEO of the CCC.

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Author: Tom Young