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Industry leaders applaud the British government’s green hydrogen funding announcement, although they are urging for a quicker pace. By 2025, the strategy aims to achieve up to 1 GW of electrolytic hydrogen capacity. It is a similar capacity for CCUS-enabled hydrogen either in construction or operation. Presently, Britain’s electrolyzer manufacturing capacity stands at approximately 5 MW. It is a fraction of the targeted capacity for next year, although financial resources have begun flowing into the projects.

UK Hydrogen Energy Association CEO Celia Greaves praised the government’s groundwork. She also stressed the need for swifter progress to meet the objectives. Despite the recent government-aided projects (HAR1), valued at 125MW, there’s still much to develop.

The second phase of the allocation round (HAR2) aims to be significantly larger and valued at up to 875 MW. Further rounds, slated for launch in 2025 and 2026 respectively, aim to allocate an additional 1.5 GW of capacity. Alongside initiatives like HAR, the Net Zero Hydrogen Fund issues up to £240 million to support such projects. It is divided into two strands focusing on different stages of project development.

The UK’s hydrogen strategy encompasses various fronts, including production, storage, distribution, and end-use applications. This comprehensive approach aims to bridge the cost gap between clean hydrogen production and fossil-fuel methods. It will also support industry development and ensure energy security, progression towards net zero emissions, and fostering clean growth.

CEO Greaves underscores the need for synchronized efforts across all aspects of the hydrogen value chain to realize their potential. Additionally, defining clean hydrogen standards is crucial. As seen in the UK’s establishment of the Low Carbon Hydrogen Standard, it sets maximum carbon intensity thresholds. Aligning these standards with international partners, such as the European Union, will be key for future collaboration and market alignment.

As the industry navigates its nascent stages, defining clear standards and synchronized timelines will be paramount for sustainable growth. Challenges such as stimulating demand and synchronizing timescales for infrastructure development remain. However, coordinated efforts guided by clear standards can pave the way for a thriving hydrogen economy in the UK.

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