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Government Backs Three New Hydrogen Projects

Hydrogen

Carlton Power, one of the UK’s leading independent energy infrastructure development companies, has been successful in Round One of UK Government’s Hydrogen Business Model (HBM)/Net Zero Hydrogen Fund process. The company’s three projects entered into the HBM Round – at Trafford in Greater Manchester, Barrow-in-Furness (Cumbria) and Langage, near Plymouth (Devon) – have been shortlisted to receive financial support from the UK Government. 

Hydrogen Strategy

The UK Government’s hydrogen strategy, released in August 2021, outlines the role of hydrogen in achieving the country’s net-zero emissions target by 2050. The strategy sets out a vision for developing a low-carbon hydrogen economy, with the potential to create new jobs and drive economic growth across the country.

It highlights the need for collaboration across government, industry, and academia to accelerate the development and deployment of hydrogen technologies, and outlines a range of measures to support the sector’s growth, including funding for research and development, regulatory frameworks, and financial incentives. The strategy aims to position the UK as a world leader in hydrogen technologies and pave the way for a low-carbon future.

As part of the strategy the Government aims for the UK to be producing 5GW of low carbon hydrogen by 2030. These new projects will contribute almost 40MW towards achieving that goal.

Green Hydrogen

Subject to final agreements with the Government and final investment decisions for each project, Carlton Power is aiming to start construction of each project before the end of the year and for each of the projects to enter commercial operation in 2025.

The three schemes represent c£200m of direct investment, will replace c215GWh of natural gas and thereby reduce carbon emissions by c40,000 tonnes per annum from 2025.

“We are delighted by today’s news.  Our three projects will support the efforts of industry and transport operators in these areas to decarbonize. They will be a catalyst for new investment and employment to support the growth of the hydrogen economy across the UK.   We are hugely grateful for all the support we have received to date – from our project partners – such as Kimberly-Clark, from local councils, local economic partnerships and businesses and parliamentarians from all parties.”

Eric Adams, Carlton Power’s Hydrogen Projects Director

Carlton Power is developing additional green hydrogen schemes in other parts of the UK, some of which will enter into Round 2 of the Government’s Hydrogen Business Model process later this year.

Final thought

The future of green hydrogen in the UK economy looks promising, as it has the potential to play a significant role in reducing carbon emissions and achieving the country’s net-zero target by 2050. Green hydrogen, which is produced by using renewable energy sources to split water molecules into hydrogen and oxygen, is a clean and versatile fuel that can be used across a range of sectors, including transportation, industry, and heating.

The UK government’s hydrogen strategy recognizes the importance of green hydrogen in achieving its net-zero goals and outlines a clear vision for developing a low-carbon hydrogen economy. The strategy sets out a range of measures to support the growth of the sector, including funding for research and development, regulatory frameworks, and financial incentives.

Moreover, green hydrogen has the potential to create new jobs and drive economic growth across the country, particularly in regions that have been heavily dependent on fossil fuels. The development of green hydrogen infrastructure, such as production facilities, pipelines, and storage systems, could generate significant economic activity and support the growth of local communities.

However, there are also some challenges that need to be addressed in the development of green hydrogen. The production of green hydrogen requires significant amounts of renewable energy. Usually the adding of intermittent renewable forms of electricity generation such as wind and solar increase the volatility of power supply, however the good news is that adding hydrogen electrolysers to the UK energy grid should allow for grid balancing as hydrogen production will take place when electricity is plentiful and therefore cheap.

Overall, the future of green hydrogen in the UK economy looks promising, but its success will depend on the availability of renewable energy sources and the willingness of government to use guarantees and funding that will allow private sector investment in this exciting sector.

Trafford Curia Report Page 01
Click here to view Curia’s reports into the impact of these new hydrogen electrolysers.

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